What have you always wondered about the economy? Tell Us

Qantas turns on a dime

Scott Jagow Dec 14, 2006
HTML EMBED:
COPY

Qantas turns on a dime

Scott Jagow Dec 14, 2006
HTML EMBED:
COPY

TEXT OF STORY

SCOTT JAGOW: Yesterday we told Australia’s Qantas turned down two private equity firms that wanted to buy the airline.

Well, that was yesterday. Today, Qantas accepted a bid that was sweetened a little bit.

Mark Pilling of Airline Business Magazine believes this could spark a wave of airline mergers over the next six months.

MARK PILLING: The airline industry’s been crying out for freedom to consolidate for years and it’s often prevented by government and national ownership restrictions. So this is not a case of the airline industry being behind the demand curve, because it wants to consolidate.

The $8.6 billion Qantas deal is one of the biggest corporate takeovers in Australian history.

Marketplace is on a mission.

We believe Main Street matters as much as Wall Street, economic news is made relevant and real through human stories, and a touch of humor helps enliven topics you might typically find…well, dull.

Through the signature style that only Marketplace can deliver, we’re on a mission to raise the economic intelligence of the country—but we don’t do it alone. We count on listeners and readers like you to keep this public service free and accessible to all. Will you become a partner in our mission today?

Your donation is critical to the future of public service journalism. Support our work today – for as little as $5 – and help us keep making people smarter.