Changes to the Qantas Sales Act, a legislation that caps foreign ownership in the national carrier, have already been drafted by the Government, according to a Fairfax Media report.
The Australian Financial Review says the changes are being prepared so every option is available once assistance measures are decided upon.
Qantas approached the Federal Government for help last year after rival Virgin Australia moved to raise $350 million, largely from the overseas airlines that own the company.
These airlines compete with Qantas on international routes, and the airline’s CEO Alan Joyce thinks his carrier is unfairly restrained by current legislation. Virgin has said the company is looking for a “free ride”.
Treasurer Joe Hockey, according to the report, has revealed preparations are well advanced ahead of a cabinet discussion on Qantas some time after February 27.
Options to support the airline, which is determined to keep its 65% domestic market share, include changes to the sales act, a debt guarantee or a public investment.
There’s more here.
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