Qantas boss Alan Joyce is furious about Virgin Australia’s capital raising, announced last week.
Virgin is majority-owned by three state-owned international airlines, which are participating in a 38 cent-per-share cash injection.
Joyce has written a letter to Prime Minister Tony Abbott, as well as other senior politicians such as Transport Minister Warren Truss saying the move is akin to an overseas company directly investing in Australia and should be stopped by the Foreign Investment Review Board.
According to the Australia Financial Review Joyce, in the letter, says it will allow Virgin to continue to undercut Qantas on domestic routes until the national carrier can’t sustain its international network.
“It represents a material threat to the Qantas Group across its domestic and international networks and is consequently contrary to the national interest,” Joyce wrote, according to the report.
Virgin is majority-owned by Air New Zealand, Singapore Airlines and Etihad. They will be offered board seats as a result of the capital raising, which will take their combined holding from 63% to 72%.