Company Overview
Qantas owns Australia’s dominant full service and low-cost airlines, and Australia’s most successful loyalty program. Before Covid-19, Qantas reported strong cashflows and return on capital (18% ROIC) and bought back 32% of shares on issue in past 4 years. Its domestic business is dominant and delivers superior margins and returns than Virgin (see chart below).
Source: Company Presentation 2019 AGM;
Virgin went into voluntary administration
Following today’s (21st of April) announcement that Virgin went into voluntary administration (similar to Chapter 11), Qantas became a monopoly domestic airline operator in Australia. I really