Jim Turnour (Leichhardt, Australian Labor Party) Share this | Link to this | Hansard source

My question is to the Minister for Infrastructure, Transport, Regional Development and Local Government. What is the government’s response to reports today regarding a possible merger between Qantas and British Airways?

Anthony Albanese (Grayndler, Australian Labor Party, Leader of the House) Share this | Link to this | Hansard source

I thank the member for Leichardt for his question and for his ongoing interest in aviation issues, particularly those related to Cairns Airport and the tourism industry in his electorate. The Australian government believes in an Australian based and a majority Australian owned Qantas. At no stage has the government indicated support for any other proposal, in principle or otherwise. Qantas has publicly stated that it is ‘exploring a potential merger with British Airways PLC via a dual listed companies structure’. Whilst Qantas advised me of the discussions that have been taking place, there has been no proposal put to the government for approval of any Qantas-BA merger. Any merger would need to comply fully with Qantas’s obligations under the Qantas Sale Act, the Foreign Acquisitions and Takeovers Act, the Trade Practices Act and Australia’s international air services agreements.

The Qantas Sale Act 1992 requires that Qantas’s main operational base and headquarters remain in Australia, the name of Qantas must be preserved for the company’s scheduled international passenger services, the company must be incorporated in Australia, at least two-thirds of the board of Qantas must be Australian citizens and the chairman of the board must be an Australian citizen. Total foreign ownership must not exceed 49 per cent. At the moment, no single foreign interest can exceed 25 per cent and total foreign airline ownership cannot exceed 35 per cent.

These provisions ensure that Qantas remains Australian. Qantas must remain Australian based and majority Australian owned, and that will not change—something that I believe has the bipartisan support of the House. Indeed, all Australian international airlines must be no more than 49 per cent foreign owned. This applies to Jetstar, V Australia, Pacific Blue, SkyAirWorld, Airnorth, OzJet and three Australian international freight operators: HeavyLift Cargo, Tasman Cargo and Express Freighters.

The government’s aviation green paper, which we released yesterday at the National Press Club, indicated that the government will consider reviewing the additional ownership restrictions that only apply to Qantas but do not apply to any other Australian international airline so that there can be a level playing field. The government has made it clear that no consideration is being given to changing any other section of the Qantas Sale Act.

Just this week we have been reminded why a national airline is important, not just for our economy but for national security. On Saturday evening I rang Alan Joyce, the new CEO of Qantas, to request on behalf of the government the assistance of Qantas and Jetstar in putting on extra flights so that Australian citizens could depart from Thailand safely given the conflict which was occurring there, particularly centred around Bangkok airport. As has always been the case with this fine Australian company, Mr Joyce indicated that he would do whatever was in the country’s interest to assist Australian citizens. It was once again a reminder of the important role in our national security and in the interests of our national citizens that having Australian based carriers can have, which is why it is important that we build the Australian based aviation industry—something that was the theme of the green paper that the government launched yesterday and something that we look forward to building on in the lead-up to the national aviation strategy white paper, which we will be bringing down in the second half of 2009.