Analysts: Qantas could be next target for Chinese investors

Sunday, 15 Jun, 2016 0
Qantas could be next in line for investment from cash-rich Chinese companies, says Credit Suisse Group.
 
Recent Chinese-led investment in Virgin Australia could spur more acquisition activity in Qantas to gain a foothold on routes linking Australia and China, Credit Suisse analysts said.
 
There is about 5% of Qantas available to a foreign investor before it reaches the 49% cap on foreign ownership under Australian law.
 
Credit Suisse analyst Paul Butler cited China Eastern Airlines and China Southern Airlines as the most likely suitors.
 
 
The Qantas share price is a ‘compelling strategic and value opportunity,’ for a Chinese carrier, Butler wrote.
 
Qantas has a strategic alliance with China Eastern on routes to China from Australia and has a codeshare agreement with China Southern.
 
In the last two weeks both HNA Group and Nanshan Group have invested heavily in rival Virgin Australia and now about a third of Virgin’s stock is Chinese owned.


 

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Editor for TravelMole North America and Asia pacific regions. Ray is a highly experienced (15+ years) skilled journalist and editor predominantly in travel, hospitality and lifestyle working with a huge number of major market-leading brands. He has also cover in-depth news, interviews and features in general business, finance, tech and geopolitical issues for a select few major news outlets and publishers.



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