I saw a report on the BBC yesterday which mentioned that Australia’s Prime Minister would not stand in the way of a take over of the airline by various investment firms. This is the first I heard of it and I haven’t been able to find any other reports on the validity of this news. I was hoping a few of you would be able to help me track down a little more info.
By: KabirT - 28th February 2007 at 00:21
For the sake of discussion…
Given recent bankruptcies…are the days of the goverenment-owned flag carriers over?
I wouldnt generalize, India still has a strong governmental presence in aviation, just for examples sake.
It hasent been easy for many airlines, with cost of fuel, competition from LOCO’s etc. playing a major part.
By: J Boyle - 28th February 2007 at 00:12
For the sake of discussion…
Given recent bankruptcies…are the days of the goverenment-owned flag carriers over?
By: steve rowell - 27th February 2007 at 23:29
The prime prime minister has denied that he is backing the consortium bid for Qantas, but said governments should not meddle in who owns companies as long as they follow the law.
Just over a week before the Foreign Investment Review Board (FIRB) is due to advise Treasurer Peter Costello of its view of the Qantas bid, an interview with the prime minister in The Australian Financial Review caused a stir with the headline “PM backs $11 billion Qantas sale”.
“That’s what the headline said, I didn’t say that,” Prime Minister John Howard told parliament, when asked to explain the report.
He said that while he understood that the airline was an icon, the personal views of the prime minister or the treasurer or senior ministers should not be allowed to influence who owns companies.
“(The government) shouldn’t be allowed in a free enterprise economy to influence who owns companies provided the law is observed and the rules are obeyed
Airline Partners Australia consortium – led by major investment bank Macquarie Bank – has offered $11.1 billion for the flying kangaroo.
The bid, backed by the Qantas board, is now being examined by the FIRB because some of the consortium’s members are North American private equity groups.
The FIRB is due to report to Mr Costello by March 7.
Concerns over the sale remain, particularly over the amount of debt involved, as well as the job security of Qantas workers and the risk that the Qantas Jetstar subsidiary will be sold off.
“I think all Australians are concerned that the level of debt involved in the sale is sustainable in time, because if it is not sustainable in time there is a lot on the line,” said Mr Swan.
National Senator Barnaby Joyce, who has already come out against the sale of the flying kangaroo, agreed that there should be a review of the debt structure.
“It’s not as if we haven’t got a history in this country of airlines hitting the deck. We do, unfortunately – a very recent one,” Senator Joyce told AAP, referring to the demise of Ansett.
Treasurer Costello refused to get involved in the renewed debate on Qantas. All FIRB applications are treated as commercial in-confidence.
Independent Senator Steve Fielding is introducing legislation this week, hoping to close what he sees as a loophole in laws ruling Jetstar and that airline’s parent.
“It’s a huge concern that Jetstar can be sold off and its jobs and operations can be sent offshore if this Qantas sale goes ahead,” Family First’s Senator Fielding told reporters.
Qantas pilots are also asking the Federal Court to rule that the airline’s subsidiary Jetstar is operating illegally.
“What we want the court to make clear to parliament and the buyers of Qantas that they are obliged to operate, especially for international services, under the name Qantas,” Australian and International Pilots Association President Captain Ian Woods told the ABC.
“A simple change from Jetstar to Qantas Jetstar would go a long way to insuring compliance with the Qantas sale act.”
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February 27, 2007 at 2:02 pm