Business

We could go under, Qantas tells MPs

Nick Falconer

QANTAS management is warning the airline could ''go under'' if the state-owned Etihad is allowed to buy enough of a share of Virgin Australia to allow it to start undercutting Qantas on its profitable domestic routes.

The chief executive of Qantas, Alan Joyce, and a small delegation has been in Canberra this week lobbying the government and the opposition over Etihad's push into Virgin, warning Qantas could not compete with a state-owned rival backed by a bottomless pit of funds from the airline's owner, the United Arab Emirates.

Sources familiar with discussions said Qantas argued that either the Foreign Investment Review Board should limit the scope of Etihad's purchase of Virgin or Qantas should be freed of the constraints of the Qantas Sale Act - which restricts foreign investment and Qantas's business options - to allow it to compete on a level playing field.
Advertisement: Story continues below

Otherwise, the airline warned, ''we could go under''.

Last week Etihad bought almost 5 per cent of Virgin Australia and is understood to be seeking 10 per cent. Qantas believes it is after a greater share.

Read more at Brisbanetimes.com.au
 

Topics:  alan joyce, etihad, qantas, virgin australia


Local Real Estate

finda logo
Featured Real Estate
Huge Industrial... AUCTION
House 1 1
Big Dreams, Small... Offers Over...
House 4 2 2
So Much Home For A Very... $395,000
House 4 2 2
Renovated Low Set Home... $199,000
House 3 1 1

Join the Community.

Get your local news, your way.

Stay Connected

Update your news preferences and get the latest news delivered to your inbox.


Marketplace

Special Offers & Promotions

Compare & Save