Qantas was reportedly pushing for a loan guarantee from former prime minister Julia Gillard and her treasurer Wayne Swan before a Labor Party shake-up which saw them leave their positions.
The Australian Financial Review reports the former PM, who was ousted by Kevin Rudd shortly before the September election, was against a share buyback.
According to the report, Labor transport spokesperson Anthony Albanese is now supporting a share buyback of up to 10 per cent of the national carrier from Opposition.
Albanese and the Treasurer have been discussing ways to support Qantas, and are yet to reach a decision.
Qantas boss Alan Joyce has been asking for help, after Virgin announced a $350 million capital raising.
Joyce thinks Virgin’s foreign airline shareholders are using it to put pressure on Qantas’ international business, by undercutting it on domestic routes.
Prime Minister Tony Abbott yesterday said the airline needed to spell out exactly what it wanted from the Government, and — according to the Fin — that it would be difficult to justify giving it a loan guarantee.
There is more here.
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