Awkward Situation For CEO, Chairman Who Backed Buyout

It's over. The long, strange trip that was a takeover bid for Australian flag carrier Qantas came to its final end (we think) this week, as a consortium led by one of the country's largest banks conceded its AUS$11 billion bid failed.

Forbes reports now that the airline is free from the uncertainty surrounding the bid, management at Qantas plan to push ahead with plans to expand the airline's mainline operations, as well as its low-cost JetStar subsidiary. The airline also plans to look into purchasing shares in overseas carriers, and possibly developing a freight operation.

A few uncertainties still remain, however... including how the airline now intends to fund its plans. The future of Qantas CEO Geoff Dixon's tenure at the airline is also hazy, as he was a key supporter of the takeover bid, led by Australia's Macquarie Bank.

Dixon told The Australian newspaper Tuesday he has no plans to leave the carrier, adding that although the takeover bid failed, it also shows the strength of management's growth plans for the airline.

"The bidders made it very plain that they were making the offer for Qantas to implement the strategic plan Qantas was undertaking," Dixon said.

As Aero-News reported Monday, Airline Partners Australia had attempted to salvage its bid -- rejected by Qantas shareholders over the weekend -- by claiming a clause in its buyout proposal had already given the buyout group majority control of the airline. After taking that argument before the Australian Securities and Investments Commission, however, the consortium evidently came to the conclusion it was all for naught.

Qantas board chairman Margaret Jackson also supported the takeover bid by APA, which would have earned shareholders about AUS$5.45 per share. Jackson has also said she plans to remain with the carrier.

FMI: www.qantas.com.au, www.airlinepartnersaustralia.com.au