Aeromorning - Aeronautics and Space News - A directory of aerospace companies, events, who's who - Independent Aerospace Insights - Pierre Sparaco's Chronicles aerospace engineering, aerospace jobs, aerospace services, aerospace company, aerospace companies, global aerospace 2010

Aeromorning - Aeronautics and Space News - A directory of aerospace companies, events, who's who - Independent Aerospace Insights - Pierre Sparaco Chronicles - Global aerospace 2010 engineering & services - Aerospace companies

YOUR ACCOUNT

SIGN IN | CREATE AN ACCOUNT

To create a personal account

Click here

If you already have an account, sign in below




If you have lost your password

Click here

 Tuesday 21 October

 
Directory
Add your website
aerospace engineering aerospace jobs aerospace services aerospace company aerospace companies airbus a 380 global aerospace 2010
 
Categories
> Administrations
> Aerial Legislation
> Aero & Space Jobs
> Aeroclubs
> Aeronautical softwares
> Aircraft Broker
> Aircraft Leasing
> Aircraft Manufacturers
> Airlines
> Airports
> Associations
> Bank & Finance
> Business airplanes
> Carriers
> Catering
> Competitiveness Clusters
> Conferences
> Defence
> Design office
> Engine Manufacturers
> Engineering
> Environment
> Events
> Events
> Fuel
> Helicopters
> Innovation
> Journalists
> Machining & Testing
> Major Programs
> Medias
> Miscellaneous
> MRO
> Museums
> Research & Development
> Satellites & Remote sensing
> Satellites & Teledetection
> Services
> Small equipement
> Social
> Space
> Specialized laboratory
> Subcontractors
> Supplier
> Technology
> Tours operators
> Training
> Vendors

News Post a news item

Qantas screams bloody murder over Etihad


Qantas screams bloody murder over Etihad buying into Virgin Australia

Qantas management is warning the carrier could ''go under'' if the state-owned Etihad is allowed to buy enough of a share of Virgin Australia to allow it to start undercutting Qantas on its profitable domestic routes.

The chief executive of Qantas, Alan Joyce, and a small delegation has been in Canberra this week lobbying the government and the opposition over Etihad's push into Virgin, warning Qantas could not compete with a state-owned rival backed by a bottomless pit of funds from the airline's owner, the United Arab Emirates.

Sources familiar with discussions said Qantas argued that either the Foreign Investment Review Board should limit the scope of Etihad's purchase of Virgin or Qantas should be freed of the constraints of the Qantas Sale Act - which restricts foreign investment and Qantas's business options - to allow it to compete on a level playing field.

Otherwise, the airline warned, ''we could go under''.

Last week Etihad bought almost 5 per cent of Virgin Australia and is understood to be seeking 10 per cent. Qantas believes it is after a greater share.

In a briefing paper seen by the Herald, Qantas argues a Virgin-Etihad partnership would be allowed to ''pick the eyes'' out of the most profitable routes, leaving Qantas to service the lesser routes under the ''quasi universal service obligation''.

Etihad would subsidise Virgin's domestic business with the aim of weakening Qantas, it says.

''Virgin/Etihad will be able to flood the market with capacity until its competition is forced to significantly reduce its own operations or worse.''

The Qantas share price nosedived recently when it forecast a $450 million loss on international routes this financial year. It says much of the reason it is losing money abroad is because it is being undercut by state-owned airlines such as Etihad, Emirates and Singapore Airlines.

Technically, Etihad could buy 100 per cent of Virgin if it wanted. Under the Qantas Sale Act, foreign investment is capped at 49 per cent, total ownership by foreign airlines is capped at 35 per cent and a single foreign investor can buy no more than 25 per cent.

Other constraints in the act make Virgin a less-complicated and more attractive target.

The Nationals senator Barnaby Joyce is backing Qantas. He does not support changing the act but believes investment by state-owned enterprises needs to be checked.

''It's not a case of being xenophobic; it's a case of recognising reality,'' he told the Herald.

The dispute comes as Qantas axed a further 36 engineering jobs after its decision yesterday to consolidate the vast majority of its component aircraft maintenance in Melbourne.

A month after announcing the axing of 535 engineering jobs and the closure of one of three heavy maintenance bases, Qantas has told its workforce that it will transfer most of its component maintenance for Boeing 747 and 767 aircraft from Sydney to Melbourne's Tullamarine Airport.

The engineers affected provide component maintenance such as flight boxes and flight control.

Source : Qantas
Bookmark and Share
Aerospace News Post a news item
Select the number of news items: 25 50 75 100 150 200
    NJASAP prepares for appearance at 2014 NBAA conv
2014-10-20
   UTC Aerospace Systems Displays Latest in Busines
2014-10-20
   Spirit AeroSystems to Release Third Quarter 2014
2014-10-20
   NASA TV Coverage Set for U.S. Cargo Ship's Depar
2014-10-20
   LOT Polish Airlines Extends Its Famous Crazy Eur
2014-10-20
    GRUPO AEROPORTUARIO DEL PACIFICO To Host Third Q
2014-10-20
   Dassault Selects Gogo Business Aviation FANS Sol
2014-10-20
   Boeing, Kenya Airways Partner with Non-Profits t
2014-10-20
    National Air Cargo, Inc. Files For Reorganizatio
2014-10-20
   Honeywell And NASA Bring STEM Education Event Ba
2014-10-20
    Gogo Business Aviation Introduces Moving Map Cap
2014-10-20
    Global Jet Capital Launches At 2014 NBAA Convent
2014-10-20
   American Airlines Cargo, US Airways Cargo Offici
2014-10-20
    eInfochips Enables the Next Generation Avionics
2014-10-20
    Paul Allen's Flying Heritage Collection Displays
2014-10-20
   Honeywell Global Business Aviation Forecast Sees
2014-10-20
   Elbit Systems Anticipates Extraordinary Finance
2014-10-20
   Pack Your Bags For An Instant Takeoff To Paris W
2014-10-17
    Media Advisory: INFORMS Aviation Security Expert
2014-10-17
   ImmersiON-VRelia to unveil immersive space exper
2014-10-17
News archive...News archive...    
Select the number of news items: 25 50 75 100 150 200


Advertising

 
Académie Nationale de l'Air et de l'Espace subscription

Aeromorning - Aeronautics and Space News - A directory of aerospace companies, events, who's who - Independent Aerospace Insights
Pierre Sparaco's Chronicles - Global aerospace 2010 engineering &services - Aerospace company
aerospace engineering, aerospace jobs, aerospace services, aerospace company, aerospace companies, global aerospace 2010