Qantas pauses plan to sell frequent flyer program
NATIONAL carrier Qantas looks likely to put the controversial plan to sell its lucrative frequent flyer program on hold.
The airline, in all sorts of financial woes, is expected to declare a pre-tax $750m loss in the 2013-14 financial year and was hoping its frequent flyer scheme with more than 10 million members would create much-needed cash.
Analysts have valued the program at $3 billion and according to the Financial Review the plan ground to a halt after potential investors demanded a share greater than 50%.
Qantas has not commented on a change of tack but the board is likely to decide against a partial float or trade sale of its loyalty program when it meets next Thursday.
- APN NEWSDESK