Time to rejoyce
The unpopular boss of Australia’s biggest airline has quit. Does his departure create an opportunity for value investors?
Qantas, Australia's largest airline, was created by a small group of pilots in outback Queensland. Now, it's the biggest and most hated airline down under. The Flying Kangaroo, as locals call it, is mired in scandal. The share price has fallen, and the boss has quit. That raises the question: With the company facing so much turbulence, is now a good time to buy the stock? While the shares look cheap, the answer will depend on how much special treatment you think the airline will continue to get.
The company is stuck in a sticky quagmire of selfish-looking scandals. The ACCC, Australia's consumer watchdog, has accused the airline of mis-selling tickets. They say Qantas sold tickets for over 8,000 flights that the company had already cancelled. That is illegal and means fines. It also hangs a dark cloud over the integrity of their financials.
Pundits have also criticised the company's lobbying efforts. They took A$2.7bn of government subsidies during the …