Future of Qantas
Mar 3, 2014, 6:22 am
#136
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Qantas Sale Act changes announced
Qantas Sale Act changes have been announced - but no debt guarantee:-
Qantas Sale Act: Tony Abbott announces intended changes to allow greater foreign investment
Prime Minister Tony Abbott has announced the Federal Government will look to repeal the part of the Qantas Sale Act which restricts foreign ownership.
However, Mr Abbott says he is not proposing to offer a debt guarantee or line of credit to the struggling airline.
The Qantas Sale Act currently restricts overall foreign investment to 49 per cent, ensuring the airline remains majority Australian-owned.
Mr Abbott says Federal Cabinet discussed Qantas for almost two hours this evening and agreed to repeal Part 3 of the Act, removing all foreign ownership restrictions.
"We will seek to repeal part three of the Qantas Sale Act in its entirety and I will be writing to Qantas as soon as this press conference is over in those terms," Mr Abbott said.
The Government says other regulations will still prevent more than 49 per cent of Qantas International being sold outside Australia, but Qantas's domestic operations could become majority overseas-owned.
...
Prime Minister Tony Abbott has announced the Federal Government will look to repeal the part of the Qantas Sale Act which restricts foreign ownership.
However, Mr Abbott says he is not proposing to offer a debt guarantee or line of credit to the struggling airline.
The Qantas Sale Act currently restricts overall foreign investment to 49 per cent, ensuring the airline remains majority Australian-owned.
Mr Abbott says Federal Cabinet discussed Qantas for almost two hours this evening and agreed to repeal Part 3 of the Act, removing all foreign ownership restrictions.
"We will seek to repeal part three of the Qantas Sale Act in its entirety and I will be writing to Qantas as soon as this press conference is over in those terms," Mr Abbott said.
The Government says other regulations will still prevent more than 49 per cent of Qantas International being sold outside Australia, but Qantas's domestic operations could become majority overseas-owned.
...
Mar 3, 2014, 7:48 am
#137
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It does seem the overarching cap of 49% foreign ownership of Australian airlines operating under international traffic rights from Australia, with smart structuring of QF (along the lines of VA) may give some negotiating room for the senate.
Mar 3, 2014, 8:12 am
#138
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I had thought that this was implicit in the fact that it involves asking Parliament to repeal primary legislation; and explicit in the title of the quote, let alone its body.
Apologies if my post misled anyone into believing that a dictatorship had arrived in Canberra.
Apologies if my post misled anyone into believing that a dictatorship had arrived in Canberra.
Mar 3, 2014, 8:23 am
#139
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opposition to changes to the QSA, in order to protect Australian jobs. Of course bankruptcy works well for saving jobs doesn't it
I had thought that this was implicit in the fact that it involves asking Parliament to repeal primary legislation; and explicit in the title of the quote, let alone its body.
Apologies if my post misled anyone into believing that a dictatorship had arrived in Canberra.
Apologies if my post misled anyone into believing that a dictatorship had arrived in Canberra.
Mar 3, 2014, 8:38 am
#140
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Being an international forum, it may seem ( to those not familiar with Australian politics) the government announcing such changes - means that they are a fait accompli. However, at the moment it seems the government will face challenges getting such changes through the senate, which some may not appreciate. Some commentators have even suggested this is a ploy straight out of politics 101 to take heat out of any decision to provide corporate welfare to Qantas, as there's a good chance that it will be blocked in either the pre or post July senate.
Mar 3, 2014, 9:19 am
#141
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Being an international forum, it may seem ( to those not familiar with Australian politics) the government announcing such changes - means that they are a fait accompli. However, at the moment it seems the government will face challenges getting such changes through the senate, which some may not appreciate.
Mar 3, 2014, 10:57 am
#142
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Etihad CEO Calls For a Truce Between Qantas and Virgin Australia
The airline executive and Virgin Australia backer has been quoted as saying that the capacity war between Qantas and Virgin Australia is financially damaging both carriers.
http://www.afr.com/p/business/compan...F8GYXTM9gaZW8H
http://www.theaustralian.com.au/busi...-1226844288506
http://www.afr.com/p/business/compan...F8GYXTM9gaZW8H
http://www.theaustralian.com.au/busi...-1226844288506
Mar 3, 2014, 11:06 am
#143
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But QF aren't going to retreat - so if VA do, QF will just follow. THat is all it will take. VA is kidding themselves if they think QF are just going to retreat on thier own.
Mar 3, 2014, 11:49 am
#144
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The airline executive and Virgin Australia backer has been quoted as saying that the capacity war between Qantas and Virgin Australia is financially damaging both carriers.
http://www.afr.com/p/business/compan...F8GYXTM9gaZW8H
http://www.theaustralian.com.au/busi...-1226844288506
http://www.afr.com/p/business/compan...F8GYXTM9gaZW8H
http://www.theaustralian.com.au/busi...-1226844288506
Mar 3, 2014, 4:02 pm
#145
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If it is all of Part 3 including
This will allow QF to off shore many functions that will help reduce its cost of operations.
IMO the Government will scarfice this to allow passage to go through a hostile Senate and will appear to "give a level playing field" to QF by eliminating its foreign ownership limits (but still requiring approval from the FIB) yet doing very little to help QF reduce its costs to be similar to its direct competitors.
If it fails in the Senate the Labour/Green/Independents will be blamed for assisting in the demise of QF.
s7(1)(h) require that of the facilities, taken in aggregate, which are used by Qantas in the provision of scheduled international air transport services (for example, facilities for the maintenance and housing of aircraft, catering, flight operations, training and administration), the facilities located in Australia, when compared with those located in any other country, must represent the principal operational centre for Qantas; and
IMO the Government will scarfice this to allow passage to go through a hostile Senate and will appear to "give a level playing field" to QF by eliminating its foreign ownership limits (but still requiring approval from the FIB) yet doing very little to help QF reduce its costs to be similar to its direct competitors.
If it fails in the Senate the Labour/Green/Independents will be blamed for assisting in the demise of QF.
Mar 4, 2014, 9:23 am
#146
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Mar 4, 2014, 9:35 am
#147
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This approach was, for me, an illustration of the arrogance and inward-thinking focus that has infected QF generally for too many years. That was a change that wouldn't have affected Australian members hugely, but QF's geographical position meant that it had a dramatic effect on its overseas customers. But culturally, QF just doesn't think like this. In this and so many other ways, the chickens have now come home to roost.
So you decided to ignore the rule (even though you knew it wasn't being enforced).
Your loss, you took a gamble. You knew what the rule was.
I often follow rules that aren't being enforced. As an example, when there is trackwork up here in the Blue Mountains, with buses replacing trains, I am supposed to buy a ticket to travel on the bus, the ticket is never checked, I could travel for free, but I choose to buy a ticket, because that is what the rules say I should do.
In short, you took a punt, you lost, your problem.
Dave
Mar 4, 2014, 10:15 am
#148
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Ok, so you knew there was a rule there, but it wasn't being enforced. But you knew the rule was there anyway.
So you decided to ignore the rule (even though you knew it wasn't being enforced).
Your loss, you took a gamble. You knew what the rule was.
...
In short, you took a punt, you lost, your problem.
So you decided to ignore the rule (even though you knew it wasn't being enforced).
Your loss, you took a gamble. You knew what the rule was.
...
In short, you took a punt, you lost, your problem.
To get all legal about this for a second, the law developed the concept of estoppel to stop people/companies suddenly changing their minds in this way.
Mar 4, 2014, 11:50 am
#149
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My new word of the day: "estoppel"!
But anyway, who would know the rules when established practice is to ignore them?
I suppose it's like "rack rates" in hotels. They almost never apply them, but when they do, you can't accuse them of gouging, because those are the official published rates..
But anyway, who would know the rules when established practice is to ignore them?
I suppose it's like "rack rates" in hotels. They almost never apply them, but when they do, you can't accuse them of gouging, because those are the official published rates..
Mar 4, 2014, 11:58 am
#150
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Anyway, it was never going to amount to anything more than a single complaint from us (which got a brush off). We voted with our feet instead. The story was being told as an illustration of the corporate approach - further reflected in many other ways than this - not for the purposes of a whinge.