Wirraway

Qantas Disappointed with Qantas Sale Act Decision
Sydney, 13 August 2002 :

Qantas Chairman Margaret Jackson said today the company was extremely disappointed with today's decision by Cabinet to leave in place the foreign investment limits imposed by the Qantas Sale Act.

"We are disappointed because this decision was made despite our case being detailed, strong and compelling and strongly supported by the investment community and industry analysts," Ms Jackson said.

"We are also disappointed that this issue was caught up in the politics surrounding a completely separate issue - the possible further selldown of Telstra.

"Qantas is both conscious and proud of its status as an Australian icon. However, I fail to see how the national interest will be advanced by denying Qantas the opportunity to access much needed equity capital on a cost-effective basis in order to invest, grow and compete on the lopsided, harsh and unforgiving international playing field."


Issued by Qantas Public Affairs (2753)
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poteroo

Perception is Reality!

The rest of the world knows the red roo on the tail is Australian. While Qantas stays in Australian ownership thats how it will remain.

How long would it be there if the short-sighted execs of Qantas flogged it off?

Selling the back paddock off isn't the solution to our economic survival. Making the most of one our greatest icons is.

cheers,

Java

Please feel free to correct me if i am wrong, but if the foreign ownership laws are changed and someone can buy or own 51% of QF then they have the controlling interest in the airline. Seems like to me that any short term financial gain for QF could come and bite them in the ASS at some later stage when they have lost control of the company.

Keg

Java, not enitrely correct. QF was asking for the foreign ownership to be lifted but had a few other 'rules' that they wanted put in place to ensure that it remained a wholly 'Australian' company. I think included in that proposal was a 'cap' on any one foreign investor owning more than a certain percentage.

Also included was a requirement for the board to be 'local' and for the HQ to remain in Australia- similar to the BHP-Billiton tie up. There was also the suggestion of removing voting rights to certain foreign tranches of the shares as well. Lots of ways to skin that cat and ensure that QF remained for all intensive purposed an 'Australian' airline.

On a couple of other notes, the QF tail is THE most recognised brand in Australia (BRW a couple of years back I think) and one of the best recognised in the airline world around the globe. I think anyone investing in the airline would want to maintain that rather than put a 'kris' or whatever else on the tail. Unlike Ansett's regular changes to the tail, I can see the white rate where it is for a long time to come.