For the first time publicly confirming rumours that have swirled for months, Mr Dixon said a group backed by himself, Mr Singleton and investment banker Mark Carnegie and advised by a global investment bank took a "serious look" at Qantas as its share price slumped to an all-time low.
"All we did was have a look at it," Mr Dixon told The Weekend Australian. "And we looked at it in a serious way. 26-11-11
For the first time publicly confirming rumours that have swirled for months, Mr Dixon said a group backed by himself, Mr Singleton and investment banker Mark Carnegie and advised by a global investment bank took a "serious look" at Qantas as its share price slumped to an all-time low.
"All we did was have a look at it," Mr Dixon told The Weekend Australian. "And we looked at it in a serious way.
We had some very top people looking at it and had a lot of people interested. But there are a lot of reasons why we decided to let it go at this stage." The aviation business owned by Mr Dixon, Mr Singleton and Mr Carnegie - Global Aviation Asset Management - and a group of wealthy private investors was looking to seize a strategic stake in the airline as an investment opportunity.
GAAM is run by Greg Woolley, a former Macquarie Bank executive who headed the investment committee behind the failed $11 billion takeover bid for Qantas by the Airline Partners Australia consortium, including David Coe's now failed Allco, private equity group TPG and Macquarie Group.
The bid, in 2007, was famously endorsed by the Qantas board and Mr Dixon as chief executive but collapsed after it was blocked by two key shareholders.
In early August, GAAM sold its aircraft leasing business to New York Stock Exchange-listed FLY Leasing for $US1.4bn ($1.44bn).
Speculation that a private equity bidder was circling Qantas surfaced only weeks later, after John Durie reported in The Australian on August 6 that GAAM may be interested.
In late August, Transport Minister Anthony Albanese publicly declared that any private equity bid for the airline was not in the national interest.
Mr Dixon would not confirm that his play involved private equity. "It involved a lot of individuals not associated with private equity," he said.
But he said with the Qantas share price then at a record low of $1.42, and amid furious union protests against the airline's plans to cut 1000 jobs to stem the bleeding in its international business, GAAM saw an opportunity.
"It wasn't about regime change. I am very supportive of the way (chief executive) Alan (Joyce) and his management team are running it. And I am still very good friends with quite a few of the board members," Mr Dixon said. "It had nothing to do with the way Qantas was being run."
Asked if he had talked to Mr Joyce about the plan, he replied: "What Alan and I talk about should remain confidential."
Mr Dixon said while the group shelved its plans because of the uncertain outlook for Europe and the global economy, it remained interested while the Qantas share price remained low.
The shares closed at $1.45 on Friday, compared to the management buyout price in 2007 of $5.45. Asked if they had given up on their plan, he replied: "No, we still have our company. We still invest. If Qantas settles down well, the share price may get to the point where there is no longer the value there."
Mr Dixon and former Qantas chairman Margaret Jackson have been heavily criticised for endorsing the private equity buyout for Qantas four years ago, which some believe could have sent the airline broke during the subsequent global financial crisis.
The criticism surfaced again in August when speculation of Mr Dixon's involvement in another corporate play for Qantas emerged. But he angrily rejects it.
"People say, what a hide I have to come back," he said. "But what about the people who said no to the $5.45? They weren't doing it to save Qantas. They were doing it because they thought it wasn't enough money.
"They have been absolutely proven wrong. We will never see the likes of it again. By knocking it back, I suppose the shareholders have done $7bn."
Mr Dixon said the "vilification" of Ms Jackson after the failed APA bid was "beyond the pale".
"I have no regrets about it except that Margaret took the bullet," he said.
" Margaret took the full force of this. In typical Australian fashion, they said let's get a scapegoat here. Let's get her out and move her on. She was a terrific chairman."
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Clark and Dawe - Alan Joyce Qantasby timjbo471 views
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