Share Price Snapshot:
Source: ASX
Key news stories of the week
Qantas Airways:
Qantas CEO Alan Joyce predicted a company tax rate reduction would give Qantas "every opportunity" to launch new routes, purchase more aircraft and employ the additional staff needed to furnish that expansion (businessinsider.com.au, 22-Jan-2018). "It will also allow us to compete on a more level playing field as our main international competitors either have tax rates lower than ours, don't pay tax at all or have more favourable tax depreciation regimes", Mr Joyce said. He added: "A reduction in the corporate tax rate would directly increase our free cash flow and therefore increase the amount of surplus capital identified under our financial framework... Increased investment by Qantas Group for growth has the potential to open up more routes and directly result in increased employment... Likewise, investment in innovation within the Qantas Group creates opportunities for employment growth in emerging areas of digital innovation and data analytics". Mr Joyce stated the carrier has already committed to the purchase of eight Boeing 787-9 aircraft, to be deployed on routes such as Perth-London Heathrow. Qantas also has 45 options and purchase rights for the 787 and tax concessions would provide Qantas with an improved opportunity to take these options and purchase rights. "At Qantas, our investments are long dated. Tax certainty and reduced impost helps reduce the risk around future cashflows which in turn supports the case for reinvestment which given the multiplier effect throughout the Australian economy is good for Australia. Australia at competitive disadvantage", Mr Joyce said.
Alliance Airlines
Alliance Aviation Services signed (15-Jan-2018) contract extensions for Glencore's Clermont mine for a further period of three years. Alliance has been providing services to various Glencore operations since 2003 and to the Clermont mine since 2015. Alliance Aviation Services CEO Lee Schofield said: "We are very proud of this extension as it provides great acknowledgement of our ability to provide Glencore with safe, reliable, and cost effective services from Brisbane, Sunshine Coast and Emerald".
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