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Australia: Qantas, Virgin in feud for government support

By  |  December 3, 2013

Australia’s Prime Minister Tony Abbott announced Monday that the government would be open to increasing its stake in national carrier Qantas to aid the company with more cash against rival Virgin Australia.

The move, however, drew criticism from Virgin Australia, which is demanding equal treatment from the government.

Virgin Australia CEO John Borghetti published an open letter to the Australian government calling for a level playing field for the airlines, telling officials that fair competition could only be achieved if aid offered to Qantas would be given to Virgin Australia as well.

Treasurer Joe Hockey proposed last week to lift the government’s 49 percent ownership cap for foreign investors in Qantas; the move would allow the airline to be open to more foreign investment.

Full Content: IBTraveler

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