Hockey flags lifting Qantas foreign ownership limit

[pauly7]

Federal Treasurer Joe Hockey has flagged either lifting the foreign ownership restrictions on Qantas Airways or providing the airline with government support as he acknowledged it was no longer operating on a level playing field with its domestic rival Virgin Australia.

http://m.afr.com/p/national/hockey_flags_lifting_qantas_foreign_2kKsGSvuryS2M3S5mJXXVK




Let the speculation begin.....!

 

[medhead]

Point 1) shame the LNP didn't support relaxing qantas ownership restrictions put up by the last government.

2) the lnp are going to nationalise qantas !?

 

[pauly7]

Point 1) shame the LNP didn't support relaxing qantas ownership restrictions put up by the last government.

2) the lnp are going to nationalise qantas !?

The second point he raises is ludicrous... I mean what first world capitalist nation would do such a thing.... (Except of course our poor old kiwi mates)

Clearly the only option is lifting the restrictions and/or putting some restrictions on VA as well.

I bet EK have already got the cheque book out.

 

[medhead]

The second point he raises is ludicrous... I mean what first world capitalist nation would do such a thing.... (Except of course our poor old kiwi mates)

Clearly the only option is lifting the restrictions and/or putting some restrictions on VA as well.

I bet EK have already got the cheque book out.

The whole thing is ludicrous, well the reasoning anyway. But if they aren't going to allow a foreign government control the "national" carrier and also provide support, doesn't that move down the nationalisation path.

 

[Isochronous]

It no doubt helps that Olivia Wirth used to work for Hockey.

 

[gwilli1]

It won't be long before we see this

 

[Deleted member]

Point 1) shame the LNP didn't support relaxing qantas ownership restrictions put up by the last government.

2) the lnp are going to nationalise qantas !?

Shame NZ and QF weren't merged ( albeit with separate livery) long ago too !!

 

[Plutonus]

So Australia is Emirates' and Etihad's next battleground? Interesting.

 

[pauly7]

Shame NZ and QF weren't merged ( albeit with separate livery) long ago too !!

Mmmm I suspect that wouldn't have been enough somehow.

 

[markis10]

View attachment 20988

It won't be long before we see this

EK is yet to buy any airline, and somehow if they were going down that path I doubt they would bother with Qantas, its not much of a prize in the context of what they are trying to achieve, given they are already getting more and more of the ground handling contracts. If anything I would expect Dnata to go after spotless before EK went after QF.

 

[dk4]

IMO any changes to the Qantas Sales Act (to allow increased foreign ownership of Qantas), need to be accompanied with a reduction in QAN's domestic market share (from an outrageous 65%), by - Jetstar being sold/floated as a separate, viable, independent business, no longer associated with Qantas in any way.

 

[smit0847]

EK is yet to buy any airline, and somehow if they were going down that path I doubt they would bother with Qantas, its not much of a prize in the context of what they are trying to achieve, given they are already getting more and more of the ground handling contracts. If anything I would expect Dnata to go after spotless before EK went after QF.

Isn't EK absolutely desperate for trans-pac rights though? (Starting with AKL-LAX?). That would make them a true RTW carrier. QF have a profitable domestic business and an extremely profitable FF business. If EK purchased QF they could reap the benefits of those profitable businesses, get transpac rights and then very quickly solve QFi's woes by converting the routes to EK metal which is a business they excel at.

EK wouldn't have partnered up with QF if they didn't think there was value in the company.

 

[turtlemichael]

IMO any changes to the Qantas Sales Act (to allow increased foreign ownership of Qantas), need to be accompanied with a reduction in QAN's domestic market share (from an outrageous 65%), by - Jetstar being sold/floated as a separate, viable, independent business, no longer associated with Qantas in any way.

I like that idea.

 

[medhead]

Isn't EK absolutely desperate for trans-pac rights though? (Starting with AKL-LAX?). That would make them a true RTW carrier. QF have a profitable domestic business and an extremely profitable FF business. If EK purchased QF they could reap the benefits of those profitable businesses, get transpac rights and then very quickly solve QFi's woes by converting the routes to EK metal which is a business they excel at.

EK wouldn't have partnered up with QF if they didn't think there was value in the company.

I'm not sure how they would get transpacific rights. Separate legislation requires 51% australian ownership for those rights. This is why VA international has different owners to VA. (in general terms)

 

[markis10]

Isn't EK absolutely desperate for trans-pac rights though? (Starting with AKL-LAX?). That would make them a true RTW carrier. QF have a profitable domestic business and an extremely profitable FF business. If EK purchased QF they could reap the benefits of those profitable businesses, get transpac rights and then very quickly solve QFi's woes by converting the routes to EK metal which is a business they excel at.

EK wouldn't have partnered up with QF if they didn't think there was value in the company.

EK partnered with Qantas because thats how they saw best value in the company, its not in their DNA to aquire airlines until now, I dont see it being so in the future. As for the trans pacific rights, EK could add that to the existing partnership if it was a priority rather than buy the company, however Tim Clark has been very open that at this stage thats not a priority, and they are looking at 5th freedom connections via Asia instead when the time is right, thats hardly "absolutely desperate". EK already has 5th freedom into the US via Japan and Singapore, and last week even commented “Aeropolitically it can be done, but now is not a good time to do it,”

Emirates Waiting Before Adding Routes

 

[mannej]

Didn't EK own Sri Lankan for a while?

 

[markis10]

Didn't EK own Sri Lankan for a while?

They had around 40 percent stake as part of their management accord with the government in 1998, and exited ten years later selling the stake for a third of what they paid for it. I would say that it was very similar to QF and FJ, with the same outcome I suspect.

 

[JohnPhelan]

IMO any changes to the Qantas Sales Act (to allow increased foreign ownership of Qantas), need to be accompanied with a reduction in QAN's domestic market share (from an outrageous 65%), by - Jetstar being sold/floated as a separate, viable, independent business, no longer associated with Qantas in any way.

And then VA would also need to be forced to sell Tiger, of course. The whole problem is that there's one set of rules for QF, and a different set of rules for VA. Ridiculous. The rules need to be the same for all.

 

[moa999]

Apparently things went downhill when the EK-management team refused to boot passengers from J for a bunch of Sri Lankan pollies who wanted to change flights.

Unlike QR, where there are multiple stories of pax being downgraded to suit the whims of the sheiks.

 

[Plutonus]

And then VA would also need to be forced to sell Tiger, of course. The whole problem is that there's one set of rules for QF, and a different set of rules for VA. Ridiculous. The rules need to be the same for all.

Perhaps, but QF want the rules changed so it can maintain its 65% share. In the interests of energetic competition as mentioned earlier, shouldn't we be pleased VA is getting investment to enable it to effectively compete and claw some market away from the clear dominant player?