QAN qantas airways limited

QAN will survive; its shareholders not so much

  1. 12,804 Posts.
    lightbulb Created with Sketch. 246
    The question shouldn't be if QAN will survive; it will. Australian politicians are pampered with Chairman's lounge memberships and First Class travel, they have been bought and paid for.

    The country also needs a flag carrying airline. So it should be and will be bailed out. It will continue to fly.

    However it's going to need cash within a year. It can sell its real estate and lease back, it can borrow some, but not enough. Perhaps the government will gift it money. More likely the government or shareholders will contribute to a capital raise which will dilute current shareholders.

    bacci
 
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