Qantas' Backup Plan Could Be To Sell A Stake In Its Frequent Flyer Program

Alan JoyceGetty Images/Sean Gallup

Qantas could sell a stake in its frequent flyer program if government assistance does not come in time, according to a report.

Ratings agencies will review the airline, which is one notch about junk status, in February.

The AFR reports the national carrier is exploring the possible sale or float of the loyalty program or potentially of Jetstar Asia.

This week Qantas boss Alan Joyce ruled out a capital raising, and said the airline could potentially sell non-core assets to raise money.

Reportedly the airline has looked at selling a stake in the frequent flyer business in the past. It made $260 million in earnings before interest and tax last year.

Qantas has appealed for government help after Virgin Australia announced a $350 million capital raising, which will see its foreign airline owners pump money into the company.

Joyce believes the airlines, which compete with Qantas’ international business, are using Virgin to squeeze it out of the Australian domestic market.

There’s more here.

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