Qantas blast Virgin’s capital raising

Qantas and Virgin

Qantas has demanded the federal government halt Virgin Australia's AU$350 million foreign capital investment, claiming state-owned airlines would debilitate the airline domestically and internationally, taking over its routes.

Qantas chief executive officer Alan Joyce has openly expressed his outrage to Prime Minister Tony Abbott, Transport Minister Warren Truss and all state governments, demanding the “outdated policy framework” of the Qantas Sales Act be urgently revised, The Australian Financial Review reported.

Joyce’s primary concern is that the capital raising efforts are the latest strategy by three foreign governments to invest in Virgin in order to undercut Qantas on profitable routes and traffic rights until the airline is no longer able to sustain its international network.

The AU$350 million injection from Air New Zealand, Singapore Airlines and Etihad Airways would see the total ownership of Virgin Australia increase from 63 percent to 72 percent, in what Joyce describes as a gradual foreign takeover of the airline.

Mr Joyce has demanded the Virgin Australia deal be “forensically examined” by the Foreign Investment Review Board.

Source = ETB News: L.B.
Pin It

Comments are closed.