Once again the problem of who owns Qantas has reared its head as the company looks to raise huge amounts of capital to replace its aircraft over the coming years.
With long term plans to replace the rest of the 744’s, the A380’s and a powerful desire to buy Ultra Long Range Aircraft that can reach London and New York non-stop, Qantas has few options to raise the capital as long as the Australia Qantas Act bans foreign investment exceeding 49% of the companies shares.
Virgin Australia has no such rule for example and is 90% owned by foreign investors.
Qantas wants the government to look at the act again and repeal it. Without it, it feels it could take too long and be too limited as it moves to make inroads into major overseas markets.
“We have the opportunity but not the means, it’s like try to run an airline with one arm tied behind your back”.
It isn’t even that the Australian Government have a holding, it’s simply that Qantas is seen as a national asset and receives protection on that basis, but when it can clearly hold its own and wants to be free, is their a need to stop it moving on?