Costello says Qantas sale gets go-ahead
06/03/07 17:35
The $11.1 billion Qantas sale will go ahead after the international consortium bidding for the airline promised it would always remain Australian-owned and controlled.
Treasurer Peter Costello said Airline Partners Australia (APA) had set out a deed of undertaking promising that maintenance and repairs would also be carried out in Australia, and that its frequent flyer program would remain.
"Given this legally enforceable deed, which the Commonwealth can enforce, which guarantees the continuation of Qantas in Australia, the regional network, Qantas continuing its frequent flyer programs, Qantas remaining an integrated service, guaranteeing in the articles of association majority Australian ownership, majority Australian directors, principal place of operation in Australia, the government will allow the bid to go to the existing shareholders," Mr Costello told reporters.
Mr Costello said the Foreign Investment Review Board (FIRB) had found that an APA takeover would not breach foreign ownership laws.
Cabinet gave the sale the go-ahead Tuesday afternoon.