News Article from this mornings news, the last 2 paragraphs are spot on!!!!
Fox and Lew slam Qantas tactics
By Richard Gluyas
19nov01
THE Fox-Lew syndicate bidding for Ansett has turned up the competitive heat on arch-rival Qantas, accusing the airline of ruthless commercial behaviour and making threats contrary to the national interest.
Trucking magnate Lindsay Fox, pressing his Tesna syndicate's argument for increased powers for the Australian Competition and Consumer Commission, likened Qantas's current position of market dominance to that of Telstra.
He also attacked Qantas's plans to sack 2000 workers when it was planning a massive fleet upgrade, as well as chief executive Geoff Dixon's threats to relocate large parts of the airline's activities offshore if unions agreed to a preferential deal on wages and conditions with Tesna.
"I don't think people realise when they talk about Qantas being an Australian airline that it's actually 58 per cent owned offshore," Mr Fox said in an interview with The Australian, contrasting the airline with Tesna's 100 per cent local ownership. "They talk in terms of picking up their bat and ball and going elsewhere with their service and maintenance if they don't get what they want.
"Statements like that are really quite ludicrous if they have Australia's interests at heart."
Mr Fox defended Tesna's push for changes to competition law to monitor Qantas's commercial behaviour, including a "cease and desist" power for the ACCC and judging anti-competitive action by its effect and not its purpose.
He said Telstra faced similar curbs on its market behaviour, so there was a clear precedent.
The proposed changes, he said, were an item of "discussion" with the federal Government and not a condition precedent for the Tesna bid.
Responding to Qantas chairman Margaret Jackson's statement that the proposal was draconian and contrary to the national interest, Mr Fox said: "It's not up to Margaret Jackson. It's up to the authorities."
Tesna also rejected the notion it was seeking a raft of special concessions and subsidies, saying most of what it wanted amounted to "soft-dollar" commitments worth significantly less than the $600 million mentioned previously.
Mr Fox accused both Qantas and Virgin Blue of hypocrisy when it came to government assistance. He said Virgin Blue had received "something like $100 million" in state and federal government subsidies over the past year. The Commonwealth had also forgiven Qantas a $400 million loan before it was privatised and had stepped in to provide the airline with insurance cover after the September 11 terrorist attacks.
Mr Lew said Tesna's proposed fleet of Airbus aircraft would set a new benchmark in passenger facilities and comfort, with internet access to allow online shopping, as well as telephone and television.
When it was pointed out that Qantas was promising much the same with its fleet upgrade, Mr Fox said: "We intend to lead. We're great believers that if you're going to be a sled dog, be the lead dog because, for all those following, the view isn't too good and the smell is horrendous."
When asked if the airline would be adequately capitalised, Mr Fox laughed and his business partner said: "You're talking to Lindsay Fox and Solomon Lew."
