Here we go.... A lifeline from Joe
Qantas has sought a government-backed debt guarantee as it battles Virgin Blue for market share, and in an exclusive interview with Fairfax Media, Mr Hockey said in his view, the airline’s request for assistance met four essential pre-conditions.
While his instinct was for government to not support individual businesses, Mr Hockey said the struggling airline had a “ball and chain” around its leg in the form of the Qantas Sale Act.
That law restricts foreign ownership of Qantas to 49 per cent.
Mr Hockey said the Australian airline now faced a “2000 pound gorilla” in the form of Virgin, which is largely foreign-owned.
“Number one is existing restrictions on the business imposed by the parliament. Number two is if it’s an essential national service, and number three is if it is in an environment where other sovereigns are engaging in direct competition to the massive disadvantage of an Australian business, then you need to take that into account,’’ he said.
“And the fourth thing is the business has to do its own heavy lifting on its own reform. We are not going to run the business or tell them how to reform.”