M3 Topic 2 Influences on Finance - Qantas Case study

Question 1

Qantas’s use of equity fiance

Answer 1

2007-8, $500 million raised due to selling new shares to combat GFC

Question 2

Qantas’s use of Debt finance

Answer 2

2017, debt folio of $5.2 billion mostly used to purchase: - new aircraft
- maintain the workforce

Recently Qantas has been taking advantage of low interest rates and higher credit rating, saving millions of dollars in interest repayments

Question 3

how has the global market influenced Qantas

Answer 3

2007-8 GFC led to 88% fall in net profit

Qantas responded by cutting flying capacity, deferring and cancelling orders of new planes. Raising $500 million