QANTAS MILK AIR PACIFIC OUT OF PROFIT!

Qantas may sell shares

Pns
Monday, August 22, 2011

SYDNEY (Radio Australia) - A regional aviation analyst says the restructure announced by Australia's national carrier, Qantas, could lead the airline to sell its shareholding in Air Pacific.

Qantas has announced this week that it is getting rid of about 1,000 jobs in Australia as part of a controversial revamp of its international arm.

The airline says the move is a bid to return international operations to profit. It plans to launch two Asia-based airlines and buy 110 new Airbus planes.

Unions have accused the carrier of outsourcing jobs and tarnishing the iconic Australian image of the "Flying Kangaroo", while the Australian Government plans to examine the changes to ensure they meet federal law.

While the Qantas announcement spoke of expanding in Asia, it made no mention of changing its services in the Pacific.

Qantas has a significant shareholding in Fiji's national carrier Air Pacific and regional aviation analyst Jim Bradfield has told Radio Australia Pacific Beat the changes being made by the Australian airline could lead to it selling its investment.

"This may mean that they would be more keen to have that shareholding either purchased by the Fiji Government, or perhaps another player," he said.

Air Pacific provides Qantas services to Fiji, and also flies to other Pacific nations and the USA.

Asia is seen as the world's fastest-growing aviation market and Australian carrier Qantas's decision to seek a bigger slice of it is a smart, and long overdue, decision, analysts say.

"It's the growth market," Centre for Asia-Pacific Aviation (CAPA) executive chairman Peter Harbison said of Asia. "The domestic market is mature with increasing competition, so this is pretty much a no-brainer.

"It will create a lot of positives in the medium to long term."