Qantas: Australia trade minister will push for Dubai-based Emirates to take a major share

Current ownership rules would rule out an investment in Qantas by Emirates, but money talks and has the Australian Minister of Trade and Investment going out of his way to encourage such in investment by the Gulf based Dubai airline.

Australia plans to raise the issue of foreign investment in Qantas with Dubai’s Emirates Airline, as it looks to rescue its struggling national carrier amid mounting losses. Australia wants Sheikh Ahmed Bin Saeed al-Maktoum, chairman of Emirates to safe the proud of Australia aviation.
ut the possibility will be raised in talks between the Australian government and Emirates planned for later this week, Robb said.

The minister said he plans to specifically raise the issue with Sheikh Ahmad. “I’m sure he’ll raise it if I don’t. But I will explicitly mention it,” he said in response to questions by Al Arabiya News.

But Robb said the Australian government is pushing for changes to allow for foreign ownership in Qantas.

“We have said that we want to open up the opportunities for foreign investors… I think Qantas would very much welcome other foreign investors, and that would give them a much more level playing field with Virgin Australia,” he told reporters at a trade event in Dubai.

“In time, it’s the only solution to make sure that the Qantas brand and its viability remains very strong.

“I am meeting with the head of Emirates. And I will give him the same answer, that the new government [wants] to see viable airlines… In the case of Qantas I think it requires a change in the ownership act and the potential for other entries into the ownership. We want to create the right environment that allows that to happen.”

Emirates did not immediately respond to a request for comment. The airline’s president Tim Clark reportedly told website AirlineRatings.com last year that “equity is not on the table” with regard to a possible investment in Qantas.

The Australian carrier in February reported a half-year loss of A$235 million ($221 million), having turned a profit the year before. The company plans to cut about 5,000 jobs and sell or defer purchase of several aircraft.