Government backs down on Qantas foreign ownership

Government backs down on Qantas foreign ownership

The federal government has backed down on its plan to open up Australian airline Qantas to foreign ownership.

Cabinet has approved a compromise deal, proposed by Labor, which will see foreign investment restriction relaxed, but will ensure the airline remains majority Australian owned.

The government had previously moved legislation to open up Qantas to foreign ownership, following complaints from the airline the Qantas Sales Act was unfair, allowing only 35 per cent foreign investment.

But the new deal will mean no single foreign investor or airline will be able to acquire more than 49 per cent of Qantas.

Transport Minister Warren Truss says it was clear the government’s original proposal would not have passed the Senate, and these changes will still allow Qantas greater flexibility.

Opposition Leader Bill Shorten has welcomed the Abbott’s government’s decision to accept Labor’s proposal.

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Libby Dreyer
Libby Dreyer 1729 posts

Libby has worked as a Senior Journalist at National Radio News since February 2011. She graduated with a Bachelor of Journalism from the University of Canberra in December 2010.

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