[071111.EN.AIR] Qantas Sale Act Puts Airline's Business In 'Jeopardy', Says CEO

QANTAS chief executive officer Alan Joyce has opposed the amendments to the Qantas Sale Act that prevents the airline from incorporating overseas which puts the "business in jeopardy" and gives foreign airlines a competitive edge.

"The bill would not make us more Australian. It would not protect Australian jobs. It would have the opposite effect. It would threaten Australian jobs," said Mr Joyce whose workforce of 35,000 is 92 per cent Australian.

Independent Senator Nick Xenophon and the unions are backing the bill that would prevent the use of foreign crews on domestic flights and impose job security clauses. Mr Joyce said that the bill's initial purpose was to keep Qantas a majority Australia-owned flag carrier.

The amendment to the bill would cut off Qantas' chances of expanding internationally and threaten its growing number of Jetstar airlines operating in Asia.

"This legislation would have significant repercussions for all Australian companies seeking to do business and compete internationally, and for the Australian economy, in particular our struggling tourism industry," Mr Joyce said, questioning the Senate whether it will apply the same principles to the Australian giants of ANZ, BHP or Westfield.

The bill imposes costs and penalises Australian airlines without requiring similar restrictions for foreign carriers competing on the same routes, Mr Joyce added.

Source : HKSG, 07.11.11.