Friday, August 22, 2008

Dixon Flags Qantas Merger

So Geoff Dixon reckons Qantas will have to merge. I really am glad this man is standing down. Of course, he will not stand down a pauper. I am sure the golden handshake with which he will go will be enormous.

I have a real concern as to the motives that some chief executives show when their own wealth is tied to Balance Sheet performance alone. Under Mr Dixon's stewardship we have seen the removal of the impeccable safety standard that Qantas has held and an acknowledgment that the recent events have been damaging. CASA has been critical of reporting standards as to maintenance of the fleet. It is very disappointing indeed that Australia's flagship has been tainted. Is this direction been caused with the a simple desire to Balance Sheet performance alone. If so it is misguided as the damage in shortcutting standards may also damage that performance.

A more cynical person might even consider the comment might be encouraging a takeover merger battle that might make someone's shareholding more valuable.
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