Qantas asked for $3 billion unsecured loan, Prime Minister Tony Abbott says
Updated 1 hour 54 minutes ago
Prime Minister Tony Abbott has revealed that Qantas asked the Government for a $3 billion unsecured loan, but says Cabinet rejected the request because the airline does not need it.
The Government has instead offered to change the Qantas Sale Act to lift foreign ownership restrictions on the airline.
Qantas says that is an important longer-term measure but would take too long to get through Parliament.
The Government says the company had also asked for a debt guarantee.
Mr Abbott has told Macquarie Radio both options were ruled out after the government received expert advice.
"You would never in a fit lend anyone $3 billion on an unsecured basis without doing due diligence on that person," he added.
"The conclusion that we came to based on their advice was that Qantas does not need an unsecured facility from the Government."
Deputy Prime Minister Warren Truss says Qantas is not in imminent danger of failure, with around $2 billon worth of cash on hand.
"We are satisfied that the company is not in imminent danger of failure," he said.
"It has several billion, around $2 billion worth of cash, it's got a valuable frequent flyers program, it's got its brand name, its aircraft and its assets, and so it has capacity to trade into the future as far as anyone can assess."
Mr Truss says Qantas is "a very capable company" with good management.
But the Federal Opposition, which supports giving Qantas a debt guarantee, has called on Mr Truss to release the due diligence advice the Government is relying on.
Opposition transport spokesman Anthony Albanese says taxpayers should be allowed to see the advice.
"Why doesn't the Government today release the due diligence test that was done by PricewaterhouseCoopers, that it commissioned that taxpayers paid for. Why don't taxpayers get to see that document today?" he said.
Meanwhile, unions leaders will sit down with Qantas management again this afternoon over negotiations about
the airline's plans to slash 5,000 jobs.
Qantas boss Alan Joyce and senior union leaders will meet in Sydney today after both sides met for the first time last Friday, the day after the company announced its $2 billion cost-cutting strategy.
Australian Council of Trade Union secretary Dave Oliver says Qantas workers are angry and feeling insecure and he wants clear answers about where the cuts will come from.
"We know roughly some areas ... but we're still in the dark for over 2,000 jobs," he said.