The Qantas Airways Ltd (ASX: QAN) share price will be in focus as the airline operator pursues legal action against an ex-executive.
The post Legal action against ex Qantas (ASX:QAN) executive leaves share price on watch appeared first on The Motley Fool Australia. –
The Qantas Airways Ltd (ASX: QAN) share price is slightly down today. This comes after news surfaced that the airline operator is taking former Jetstar Japan head, Nick Rohrlach, to court.
At the time of writing, the Qantas share price is down 1.6% to $5.02.
Rewards program secrets worth keeping
Reportedly, the issue swirls around the potential of Mr. Rohrlach utilising confidential information from Qantas that could be implemented into Virgin’s own Velocity loyalty program.
The trade secrets were allegedly shared by Qantas to Mr. Rohrlach after he had agreed to take up a senior position within Qantas’ own loyalty business.
Mr. Rohrlach was selected as chief executive of Virgin’s Velocity program in mid-January.
Qantas is making a bid for Mr. Rohrlach’s commencement to be delayed to September from May.
Where to from here?
Qantas officially submitted documents for the legal case to the NSW Supreme Court last week. The case will hold a direction hearing tomorrow.
More details will proceed following this initial hearing.
It’s been a bumpy ride for Qantas and its share price
The past 12 months have been fraught with devastation as a result of COVID-19 for Qantas and other airlines. However, domestic travel has greatly improved with it now generating positive cash flows once more.
Additionally, the company is proceeding with its goal of saving a minimum of $1 billion in annual savings from FY23 and beyond.
Despite its plans, the continuation of international border closures remains to weigh on the Aussie airline. As such, Qantas certainly doesn’t want to lose its edge in its loyalty program now.
The airline’s share price has eked out a positive 8% return for shareholders in the last year. Bringing the company’s shares reasonably in line with the 8.5% return from the S&P/ASX 200 Index (ASX: XJO).
Ironically, we covered the UBS’ rating of Qantas yesterday. The broker currently has a buy rating on the airline with a price target of $6.20. This would represent a 23% upside to the current $5.02 share price.
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Motley Fool contributor Mitchell Lawler has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.