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Friday, 14 September 2012


EMIRATES PULLS QANTAS BACK FROM BRINK OF JUNK: AUSTRALIA CREDIT

Emirates Pulls Qantas Back From Brink of Junk
Photo : Brendon Thorne / Bloomberg

Qantas says the 10-year accord with Emirates on pricing, sales, schedules and loyalty programs it announced Sept. 6 can end A$1.2 million ($1.3 million) in daily losses on international routes. 

That’s boosting prospects the company can retain its status alongside Southwest Airlines Co. as the only carrier worldwide rated as investment grade by both Standard & Poor’s and Moody’s Investors Service.

“There was a risk they’d lose their investment grade,” John Sorrell, head of credit at Tyndall Investment Management Ltd. in Sydney, said by phone. “The deal doesn’t completely rescue them but there’s a lot of positives to it. Probably the Emirates deal will hold them in place for the moment.”

14/09/2012  :  David Fickling / Bloomberg.


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