Hockey flags lifting Qantas foreign ownership limit

[dk4]

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.

Your argument is completely incorrect, on two major counts.

1. VA+TT does not equate to a dominant and potentially manipulative market share position.
2. TT is not a viable company, it is a drain on VA and the ACCC determined it would have folded and left the market if VA did not take a majority stake in it.

But you are correct that things need to be fairer, and that can only occur if QF & JQ are forced apart.

 

[medhead]

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.

I think we need to carefully consider the various rules here. The qantas sale act has some restrictions but there is also the ownership restrictions for Australia international airlines. Unless qantas is going to demerge from QFi, like VA has from VAi, changing the QSA isn't really going to help them that much.

Now if they did separate from QFi what is the future of QFi. I can't see all this foreign capital being used to prop up a loss making QFi (despite the implication of Joyce's position that losing money is sustainable) and I can't see it going to red tailed aircraft.

Then I'll repeat my earlier point that the current government already turned down the previous governments attempt to remove the foreign airline ownership caps from the QSA. If it wasn't good then why now? Because the government wants to protect a monopoly and stifle competition?

 

[Ansett]

I am also concerned by AJ's Comments

Mr Joyce said Qantas was talking to the government about other options.
“If this does continue then there may be no Qantas in the future. It’s a huge commercial disadvantage. We are at risk if we don’t have a level playing field,” he said.

Is Mr Joyce telling us that Qantas is deep deep financial trouble, as all I see is threats of cut backs closeures and cost cutting at every corner. Frequent Flyer points being devalued and customers encouraged onto other airlines such as EK and then in Asia CX SQ and TK.

With almost a million FF miles perhaps its time to harvest them now.

Its good to see that AJ has confidence in his management ability and promises to turn around QFi. (Tongue in cheek comment)

 

[markis10]

How often do you hear about someone in business complaining about a level playing field?

 

[maninblack]

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.

And with that order for 150 new 777's they would like to swallow up Qantas quicker than you can say Melbourne Cup. Buy first, change the rules later.

 

[JohnPhelan]

I don't think it's possible - from a political perspective - to increase the foreign ownership limits for QF, so I think Hockey's talking about an ideal world, not the real one.

What is politically possible is to impose similar sorts of restrictions on all Australian-flagged carriers. I don't agree with that philosophically, either, but I think it's the only politically practical option. It's just untenable to continue to have two vastly different sets of rules for the two major Australian carriers - one way or another, they have to be brought into alignment.

 

[amaroo]

With almost a million FF miles perhaps its time to harvest them now.

QF are the equivalent of an Macquarie Street farmer....always whinging, always moaning. Don't tell me you've forgotten Geoff in his hay day......he was still moaning whist delivering $B + EBIT.

It's always a good idea to cycle the points....FF accounts are a long way from being a bank.

 

[Noob]

When people decide to invest in Qantas shares, either at the time they were floated in the 1990s or today, they made an educated decision that the existing restrictions on Qantas are worth it - Because it's 'Qantas:the Spirit of Australia' and not 'New Airline'.

One would hope that common sense would be practiced and due diligence was undertaken before one would invest in a company. Investors were happy to purchase at privatisation, and happy to purchase over the past days, months and years - With it being widley known that Qantas has a unique restriction placed upon it, which has continued to be proven 'worth it' to attain the benefits of the Qantas brand.

So could it then be inferred that this means that the benefits of operating under the Qantas brand no longer out way the cost of its unique foreign ownership cap?

If this is the case, why don't they simply get rid of 'Qantas'? If it was worth it then (as opposed to starting a new airline) but isn't now, change it.

Management seldom direct a company askew from a perfect path.
It's continually expressed in western business that only external decisions could ever put a company into a poor position. Yet, only internal decisions could ever put a company into the best of positions.

Amazing stuff considering the health of a nation's economy is considered the direct result of it's government, and in poor health a change in government can completely turn it around in the same global environment.

Whilst he's in correspondence, maybe Mr. Hockey should tell Joyce that in his experience he's found a change in management works wonders in completely rectifying externally rooted issues?

Fascinating.

 

[JohnK]

That is not the solution. We do not need any more foreign ownership in Australia.

Where does it all end?

 

[bismarck]

That is not the solution. We do not need any more foreign ownership in Australia.

Where does it all end?

When we have the totally free movement of people and capital.

Nothing has been so good for the cause of peace as international trade and investment.

 

[maninblack]

Whilst he's in correspondence, maybe Mr. Hockey should tell Joyce that in his experience he's found a change in management works wonders in completely rectifying externally rooted issues?

Fascinating.

Joe Hockey has no experience in business. He wa a political activist at Uni, then worked for a few years as a junior lawyer (all the time involved in politics) and then went professionally into the politics game.

 

[Sprucegoose]

Joe Hockey has no experience in business. He wa a political activist at Uni, then worked for a few years as a junior lawyer (all the time involved in politics) and then went professionally into the politics game.

before we depersonalize the thread, his wife is a senior banker and he himself has been involved in the most heartfelt business you can be in.....a family business that nearly went broke. So please let's keep this civil.

 

[Sprucegoose]

That is not the solution. We do not need any more foreign ownership in Australia.

Where does it all end?

australians own more overseas than foreign interests do in Australia. Let's not get paro about this

 

[The Rok]

Open market = fair play for all. Get rid of all the restrictions and allow the market to decide who should have what market share!

All well and good to say "we want Qantas to remain in Australian hands" or "Qantas has to remain our national carrier" but unless your going to fly exclusively on Qantas then put up or shut up.

You can't have it both ways. Scrap the ownership restrictions in full and allow Qantas and it's new owners, whoever they may be to decide its future, sick of hearing people whinge about how important it is for Qantas to remain a national carrier and then go and buy $2,000 J tickets on a US carrier... It's hypocrisy at its best.

 

[Happy Trails]

before we depersonalize the thread, his wife is a senior banker and he himself has been involved in the most heartfelt business you can be in.....a family business that nearly went broke. So please let's keep this civil.

As it happens I quite like Joe Hockey, but I don't see how his wife's job is relevant; no one voted for her.

 

[pauly7]

Well Joe Hockey and the Government has just blocked the takeover of Graincorp by a ADM (overseas company)....

Read into that what you will.

 

[777]

Well Joe Hockey and the Government has just blocked the takeover of Graincorp by a ADM (overseas company)....

Read into that what you will.

I read into that that the Qantas ownership cap is going nowhere.

 

[medhead]

before we depersonalize the thread, his wife is a senior banker and he himself has been involved in the most heartfelt business you can be in.....a family business that nearly went broke. So please let's keep this civil.

Who cares what his wife does. My wife topped the state in political relations in high school, studied international relations at uni, including the Thai language, was doing public and community relations work for a large multinational company when we met and has raised 2 near perfect children.

I'm sure as hell not going to claim I'm qualified in those areas as a result. I'm pretty sure hockey has been off doing other things while his wife was learning and plying her craft.