We would have to assume that the contract with Qantas has some form of retainer when flights don't operate. With ACT going in to lockdown today, the CBR-DRW flights are likely to reduce. Also, the flights from TSV to MEL and ADL are going to be slow if lockdowns continue as they are. There is a lot of wet lease work for Qantas coming up. Having lost money in the Virgin collapse, do we need to worry about Qantas' solvency?
The debt incurred purchasing and getting the E190 in to service is not small. A capital raising would dilute our shareholdings. Debt is cheap at the moment but has risk so, therefore, I am happy to see a dividend forgone for a year or so to prevent debt getting too high or to prevent the dilution by a capital raise.
AQZ Price at posting:
$4.15 Sentiment: Hold Disclosure: Held
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