On May 24, Australia's Qantas Airways said it might hive off some businesses or return billions of dollars to shareholders as it finds its feet following a failed US$9 billion (HK$70.2 billion) takeover bid.

Qantas told investors it was reviewing ownership of its frequent flyer program and might sell off its express freight joint venture and other operations as part of a "demerger" option being considered to return capital to shareholders. Qantas shares closed at a record high of AU$5.46 (HK$35.16) after the airline reaffirmed previous profit guidance and outlined the options it was considering under a capital management strategy review.

This was above the AU$5.45 a share offered by a consortium including Macquarie Bank, whose bid came unstuck earlier this month after failing to get enough shareholder acceptances to keep the offer alive.

Qantas, dubbed the Flying Kangaroo, was briefing investors for the first time since the bid collapsed and two board members bailed out amid heavy criticism of the way management handled the takeover.

"I am confident that stability will be forthcoming for Qantas," chief executive Geoff Dixon said.

The airline said that alternatives it was considering included shareholder distributions via dividend policy, a share buyback or a demerger of some businesses.

"We are also looking at growth opportunities which are real, particularly in some of our portfolio business. Any acquisitions would be on a small scale," Dixon said.

Analysts have said the airline could raise more than AU$3 billion by selling its freight, maintenance and catering businesses.

Qantas executives said it had hedged 51 percent of its fuel requirements for fiscal 2008, and its outlook for the current year was in line with previous guidance. It expected international capacity to grow 4 percent in the next 12 months and expand further once new superjumbo A380s arrive.

It was looking to expand its air freight businesses domestically and internationally and at a freight acquisition in Asia.