The Qantas Sales Act looks to be gaining traction after the Australian cabinet approved a proposal that would see foreign ownership restrictions for the airline relaxed.
As reported by Reuters, a compromise reached between the Liberal Party-led coalition government and the opposition Labour Party allows for the current limits on ownership by individual investors (25 per cent) and foreign-owned airlines (35 per cent) to be raised to 49 per cent.
“While removing all restrictions that apply only to Qantas remains our preference for levelling the playing field, changing the 25 and 35 percent limits would represent an improvement on the status quo”, the airline said.
As reported by Business Traveller Asia Pacific earlier this year (see here), the Flying Kangaroo is undergoing major restructuring following an unprecedented loss of A$252 million (US$225.3 million) in the second half of 2013.
Indeed, Qantas chief executive Alan Joyce has expressed frustration that the airline’s ownership restrictions has limited the Flying Kangaroo’s ability to compete with other carriers such as Virgin Australia – which although classified as a domestic carrier, is majority-owned and backed by multiple foreign airlines, such as Air New Zealand (23 per cent), Etihad Airways and Singapore Airlines (both 19.9 per cent each).
For more information, visit qantas.com.au
Clement Huang
