The issue of foreign investment in Qantas is to be raised with Emirates as Australia looks to prop up its struggling national carrier amid mounting losses.
Australian trade and investment minister Andrew Robb is to raise the possibility of an investment in Qantas during a planned meeting with the Dubai-based carrier’s chairman Sheikh Ahmed Bin Saeed al-Maktoum.
Emirates struck an alliance with Qantas just over a year ago, but has ruled out an equity stake in the troubled Australian airline.
But the possibility will be raised in talks between the Australian government and Emirates planned for later this week.
Robb 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.
Current ownership laws rule out an investment in Qantas by Emirates.
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.”
Abu Dhabi-based Etihad Airways owns 19.9% of Virgin Australia, alongside Air New Zealand, which has a 23% stake and Singapore Airlines, which owns 19.9%.
Emirates 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 reported a half-year loss of A$235 million in February, having turned a profit the year before. The airline plans to cut about 5,000 jobs and sell or defer purchase of several aircraft.