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MELBOURNE - Australia's national carrier Qantas Ltd needs to get back to running its business, now that the A$11 billion ($12.66 billion) takeover bid by Airline Partners Australia (APA) has failed, says the managing director of the Centre for Pacific Aviation.
Peter Harbison told Sky News Australia that the airline's management had to make clear to shareholders where its attention will be going forward.
"It's important for management to make it clear that it's business as usual now, because if this thing lingers on, it can be very disruptive," Mr Harbison said.
"From their side (Qantas), yes, they want it finished."
While Mr Harbison says he doesn't believe the Macquarie-led APA consortium will come back with another offer, at least before the federal election, he is not ruling it out.
"If it weren't an election year, because this is highly politically sensitive of course, they'd probably hang in there and come back in a month or so," he explained.
"To drop it now is a big call, but at the same time I don't think the government really wants to see them knocking at the door again.
"Macquarie didn't get where they are by being limp-wristed and giving up. I think there's probably still a lot of momentum in there - a lot of voices will be saying: 'Let's go through with it'."
But at the end of the day, Mr Harbison said, it was unlikely to happen before the nation decides who will be the new leader of the country.
"Qantas is an airline that relies very heavily on support from government," he said.
"It's a possibility and I think that's what's holding up the share price at the moment too ... but for my bet, it won't happen."
Mr Harbison also said there had been some talk of Singapore Airlines buying a share in Qantas, but the carrier's relationship with British Airways may make this difficult.
"It would certainly have to drop that to get in with Singapore Airlines, because of the anti-competitive impact of having two carriers on Australia/Singapore that were so close," he said.
But he also warned that Qantas may come under continuing pressure from competition on the domestic front, with Tiger Airways set to join the party.
"Qantas' most profitable market is the domestic market - putting a third player into that market just plays havoc with the yields," he said.
- AAP
