Legal action against ex Qantas (ASX:QAN) executive leaves share price on watch

The Qantas Airways Ltd (ASX: QAN) share price will be in focus as the airline operator pursues legal action against an ex-executive.

| More on:
Red and blue paper planes

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

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.

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.

More on Share Market News

A young man punches the air in delight as he reacts to great news on his mobile phone.
Broker Notes

These ASX 200 shares could rise 30% to 50%

Brokers have good things to say about these cheap shares.

Read more »

Man jumps for joy in front of a background of a rising stocks graphic.
Share Market News

Record CBA share price and Iran-Israel ceasefire lift ASX 200 financials to new peak

ASX financial shares led the 11 market sectors last week, gaining 1.82% and reaching a record high.

Read more »

A female ASX investor looks through a magnifying glass that enlarges her eye and holds her hand to her face with her mouth open as if looking at something of great interest or surprise.
Broker Notes

Top brokers name 3 ASX shares to buy next week

Brokers gave buy ratings to these ASX shares last week. Why are they bullish?

Read more »

A happy young couple lie on a wooden deck using a skateboard for a pillow.
Broker Notes

10 Aussie stocks to buy in FY 2026

Let's see which shares analysts think could be buys in the upcoming financial year.

Read more »

Person pretends to types on laptop drawn in sand.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a disappointing end to the trading week for investors this Friday.

Read more »

A young boy points and smiles as he eats fried chicken.
Share Gainers

3 ASX All Ords shares smashing the benchmark this week

Investors are sending these three ASX All Ords shares rocketing 18% to more than 29% this week. But why?

Read more »

watch
Broker Notes

Brokers name 3 ASX shares to buy today

Here's why brokers are feeling bullish about these three shares this week.

Read more »

Disappointed man with his head on his hand looking at a falling share price his a laptop.
Share Fallers

Why APA, Flight Centre, Reece, and Transurban shares are falling today

These shares are having a tough finish to the week. But why?

Read more »