Dividends uncertain for Qatas

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By TESTCustomwebLP TESTCustomwebLP October 31, 2010 10:37

Dividends uncertain for Qatas

Chairman of Qantas Airways, Leigh Clifford, has told the airline’s annual general meeting in Adelaide that he can’t say when dividends will return because the airlines has US$17 billion of aircraft on order and a credit rating to safeguard.

Any future dividend payments, he said, would be a judgment call, considered against the airline’s capital needs. Clifford denied the airline had a cash flow problem.

Credit rating is “very, very important” he said, when an airline has a US$17 billion acquisition program.

“So we have got to be very conscious of our credit rating because a number of those planes, probably the vast majority of them, will be financed by debt,” he said. “It is a constant balance. Just when you think we are out past a shore break in the airline industry, along comes a volcano in Iceland and knocks you towards the boundary, so we have always got to be alert for that.”

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By TESTCustomwebLP TESTCustomwebLP October 31, 2010 10:37
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