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An A300-600R in Compass colours
Compass Airlines Prepares to Launch
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Compass Airlines Ready to Launch via Innovative Share Scheme
Bryan Grey’s Compass Airlines is about to go to the market with an innovative share scheme that could prove very popular with companies which book a substantial amount of domestic air travel.
Genesis of the scheme, which was due for launch during late May, is that for every $1,000 of 50c shares taken up, the investor will receive membership of the Compass Owners Club with entitlement of 10% of the annual share value in free travel. Thus if an individual, or a company, took up $20,000 of Compass shares there would be an entitlement of $2,000 of free travel in that year. The entitlement must be used in that year or it lapses though is automatically renewed each year while the shares are held. The entitlement can also be traded or sold by the owner and is also in addition to dividends that Compass expect to make once the airline is established. The innovative scheme has the full approval of the tax department and stock exchange.
Additionally, if the airline’s projections run true to form then investors should also see a reasonable return on their initial investment by way of dividends. Compass estimates that a $20,000 initial investment should return $80,000 at the end of five years in addition to the equivalent of some $10,000 of free air fare. Mr Grey cites that a benefit of this scheme is that it cannot be duplicated by either Ansett or Australia due to their lack of public ownership. Compass executives don’t fear that this scheme will dilute their revenuebase as mostly the ‘free’ seats would now be utilised as a large aircraft such as theA300 is rarely full.
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