Ann: Qantas Sale of Surplus Mascot Land, page-2

QAN has now sold off most of its 'farm' as it had previously sold airport terminals that it owned.

When one has to hock the 'family silver' it's usually indicative of a desperate financial position.

In its FY 21, QAN commented how its debt level in 2 H 21 had lowered but IIRC it omitted how it had risen between 1 July 2020 and 30 June 2021. The ongoing Greater Melbourne (now in its 12th week if I can count) and previous Greater Sydney lockdowns since then will have seen QAN incur further large losses, while the deferment of Sydney-rural travel until later (announced today) is another small impediment.

This transaction gives it a bit more breathing space but even if the total transaction value ends up at A$1.1 billion, in around 220 days at the present estimated QAN net loss per day of A$5 million, revenue from the transaction would be gone.

The costs involved in leasing back some of the land temporarily have not been disclosed by QAN. LOGOS will seek a commercial return so it's almost certainly not going to be a peppercorn rental.

Talk of a new office development is amusing when CEO Mr Joyce discusses how it'd need to lower the airline's carbon footprint, given that air travel is a major emitter. I don't have a problem with the latter, as it's providing a vital service for overseas travel in particular, but many woke investors like trade union-backed superannuation funds obsess about this.