Reference no: EM132630867

Capital market research:

On 25 June 2020, Qantas announced a post-COVID recovery plan which will see several job losses as well as a fresh injection of capital (capital raising) with the aim that Qantas will emerge as a stronger airline. Announcing the plan, the Qantas Group CEO Alan Joyce has said: "The Qantas Group entered this crisis in a better position than most airlines and we have some of the best prospects for recovery, especially in the domestic market, but it will take years before international flying returns to what it was. We have to position ourselves for several years where revenue will be much lower. And that means becoming a smaller airline in the short term. Most airlines will have to restructure in order to survive, which also means they'll come through this leaner and more competitive. For all these reasons, we have to take action now."

Required:

Problem 1) Give a brief summary of the company, its industry and major competitors;

Problem 2) As a potential Qantas investor, what are your expected impacts of the announcement on the share price (up or down, good news vs bad news) and justify your arguments using academic research;

Problem 3) Based on your analysis (from Appendices), discuss whether your expectations are consistent with your findings.