Planning a Media Conference for Qantas Airlines2007TABLE OF CONTENTSPROPOSAL 3REASON3FOCUS 4CONFERENCE OBJECTIVES5CONFERENCE DETAILS5PREPERATION SCHEDULE6BUDGET7MEDIA INVITATION LIST8MEDIA RELEASE9MEDIA KIT10MEDIA ALERT11BACKGROUNDER (media kit item)12PROFILE (media kit item) 12POSTER (media kit item)13CONFERENCE TAGS (media kit item)13EVALUATION131. ProposalI propose that Qantas Airlines organizes a media conference to clear the air regarding the potential fall out of the takeover of the company by Airline Partner Australia, the private equity consortium led by Macquarie Bank. Following the acceptance of the takeover by the Qantas board, there have been apprehensions on the part of the employees and shareholders that this would lead to job losses and loss of financial independence of the company.
The media conference will be held at Qantas Airlines’ headquarters at Sydney on February 17, 2006 and addressed by the CEO Geoff Dixon and consortium members, Newbridge Capital’s Ben Gray and Allco Equity Partner’s Peter Yates. 2. ReasonThe takeover bid by the Airline Partners Australia has grown to be a national and international issue. There are various controversies regarding that takeover and the media has so far highlighted the opinion that the step will have adverse effects on the company and the shareholders.
On the other hand, the Qantas board considers the $11 billion takeover bid by the consortium a good deal at the price of $5.6 a share, giving the shareholders a 33 percent premium over investments. There is no fear that the takeover will result in the break up of the company or that the board will lose management control. The memorandum of Qantas does not allow a foreign entity to hold more than 49 percent, individual shareholders not more than 15 percent and a foreign airline not more than 25 percent.
Hence, the consortium members across nationalities have bid for the maximum of 25 percent of shares individually. The adverse media coverage that the company has received as a result of fear over loss of independence and jobs needs to be countered. The media conference will focus on the company’s stable performance over the past years and its growing prospects as a result of the takeover. With the takeover, the company will get access to additional funds that can be used to acquire more aircrafts and upgrade the technology.
Even if some non-core operations are outsourced to offshore locations, there will be more job opportunities with the increase in the number of flight routes and aircrafts. 3. Focus The financial performance of the company over the last few years has been spectacular. The conference will focus on Qantas’ financial and operational improvements since the outsourcing of software services to IBM in 2004. It will be stressed that the move has not reduced the workforce of the company. Instead, it has increased the productivity of the company.
The strong traffic figures for November – 9 percent increase in domestic traffic and 2.3 percent rise in fare yield - will be highlighted. Also, the strong financial performance of the Sydney Airport, also controlled by the Macquarie Bank, will be noted. In the light of the past performance of the company as well as that of the private equity consortium in turning around ailing companies as well as in boosting the growth of a profitable company will be focused.