Labor May Scrap Qantas Ownership Cap
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Labor May Scrap Qantas Ownership Cap
Dow Jones (USA)
Sunday August 22, 10:12 PM
AUSTRALIA PRESS: Labor May Scrap Qantas Ownership Cap
SYDNEY (Dow Jones)--The opposition Australian Labor Party would consider scrapping restrictions that limit ownership of Qantas Airways Ltd. to 49%, the Australian Financial Review reports Monday.
With a federal poll widely expected to be held by the end of the year, Labor's transport spokesman, Martin Ferguson, told the newspaper the party has an "open mind" on the issue, given changes in the aviation industry in recent years.
"Australia must have regard for making sure that Qantas can survive in a tough international competitive world," Ferguson said.
When Qantas was privatized in 1995, the then Labor government imposed restrictions to ensure the airline remained majority Australian-owned. Qantas chief executive Geoff Dixon last week called for a change in the ownership rule, arguing the carrier wasn't competing on a level playing field.
Newspaper Web site: http://www.afr.com
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Sunday August 22, 10:12 PM
AUSTRALIA PRESS: Labor May Scrap Qantas Ownership Cap
SYDNEY (Dow Jones)--The opposition Australian Labor Party would consider scrapping restrictions that limit ownership of Qantas Airways Ltd. to 49%, the Australian Financial Review reports Monday.
With a federal poll widely expected to be held by the end of the year, Labor's transport spokesman, Martin Ferguson, told the newspaper the party has an "open mind" on the issue, given changes in the aviation industry in recent years.
"Australia must have regard for making sure that Qantas can survive in a tough international competitive world," Ferguson said.
When Qantas was privatized in 1995, the then Labor government imposed restrictions to ensure the airline remained majority Australian-owned. Qantas chief executive Geoff Dixon last week called for a change in the ownership rule, arguing the carrier wasn't competing on a level playing field.
Newspaper Web site: http://www.afr.com
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Mon "The Australian"
Labor looks at Qantas foreign limit
By Shane Wright
August 23, 2004
FOREIGN ownership in the national air carrier Qantas could increase no matter who wins the coming federal election.
Labor today confirmed it would consider allowing an increase to 49 per cent in the foreign ownership level in Qantas, while Transport Minister John Anderson left the door open to the idea.
Qantas has previously asked the Government to ease the foreign ownership restrictions on the carrier.
British Airways has a 19 per cent share in the airline.
Last week, Qantas chairwoman Margaret Jackson and chief executive Geoff Dixon said the carrier was disadvantaged by the foreign ownership restriction, arguing it was costing the company about 3 per cent extra on the cost of global equity capital.
The restrictions on foreign ownership were introduced by the then Labor government in 1995.
But Labor's present transport spokesman Martin Ferguson said the world had moved on from then, with the September 11 terrorism attacks and increased competition in global aviation meaning the issue could be revisited.
"You have to look at the huge changes that have occurred in aviation internationally in the last couple of years, especially since September 11 and also you have had to handle Bali, the question of SARS and the collapse of Ansett," he said.
"We have to make sure that if there is a requirement to consider a change in the levels of foreign ownership of Qantas that it's done and considered on merit so as to make sure that Qantas remains competitive and that we keep jobs in Australia."
Mr Ferguson said Australia could not risk Qantas going the same way as Swissair or several American airlines which were in a state of bankruptcy.
"The international aviation industry is going to get tougher and tougher," he said.
"We've got to make sure that Qantas is positioned to survive and be not only strong domestically but also internationally because Qantas is not only an Australian icon, it is one of Australia's major employers and we've got to protect Australian jobs."
Mr Anderson said although the Government had rejected previous efforts by Qantas to change the foreign ownership restriction, it was not set in stone.
"We decided not to. So there is nothing before cabinet at the moment in terms of us reconsidering our position," he told reporters.
But Mr Anderson said it was not an inevitability.
"I don't think anything is inevitable, except death and taxes," he said.
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Labor looks at Qantas foreign limit
By Shane Wright
August 23, 2004
FOREIGN ownership in the national air carrier Qantas could increase no matter who wins the coming federal election.
Labor today confirmed it would consider allowing an increase to 49 per cent in the foreign ownership level in Qantas, while Transport Minister John Anderson left the door open to the idea.
Qantas has previously asked the Government to ease the foreign ownership restrictions on the carrier.
British Airways has a 19 per cent share in the airline.
Last week, Qantas chairwoman Margaret Jackson and chief executive Geoff Dixon said the carrier was disadvantaged by the foreign ownership restriction, arguing it was costing the company about 3 per cent extra on the cost of global equity capital.
The restrictions on foreign ownership were introduced by the then Labor government in 1995.
But Labor's present transport spokesman Martin Ferguson said the world had moved on from then, with the September 11 terrorism attacks and increased competition in global aviation meaning the issue could be revisited.
"You have to look at the huge changes that have occurred in aviation internationally in the last couple of years, especially since September 11 and also you have had to handle Bali, the question of SARS and the collapse of Ansett," he said.
"We have to make sure that if there is a requirement to consider a change in the levels of foreign ownership of Qantas that it's done and considered on merit so as to make sure that Qantas remains competitive and that we keep jobs in Australia."
Mr Ferguson said Australia could not risk Qantas going the same way as Swissair or several American airlines which were in a state of bankruptcy.
"The international aviation industry is going to get tougher and tougher," he said.
"We've got to make sure that Qantas is positioned to survive and be not only strong domestically but also internationally because Qantas is not only an Australian icon, it is one of Australia's major employers and we've got to protect Australian jobs."
Mr Anderson said although the Government had rejected previous efforts by Qantas to change the foreign ownership restriction, it was not set in stone.
"We decided not to. So there is nothing before cabinet at the moment in terms of us reconsidering our position," he told reporters.
But Mr Anderson said it was not an inevitability.
"I don't think anything is inevitable, except death and taxes," he said.
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