Alan Joyce, Chief Executive Officer of Qantas Airways Ltd, has written to the federal government to insist it thwart a $350 million foreign capital injection into Virgin Australia Holdings Ltd.
Mr. Joyce wrote to Transport Minister Warren Truss, Prime Minister Tony Abbott, including all state government officials to express his uneasiness the “final act” of “predatory” state-owned airlines looking to undermine Qantas, diminish its international and domestic importance and eventually capture and take over its flight itineraries.
In his letter, Mr. Joyce spoke of the $350 million capital raising declared by Virgin last week, which was the newest development in a steady foreign conquest of the competing airline, constructed to skirt foreign investment regulations.
Mr. Joyce contends, the capital raising would lift the the total ownership of Virgin by a host of state-owned airlines – Etihad Airways, Air New Zealand Ltd and Singapore Airlines and – from 63% to 72%.
Mr. Joyce also advised the federal government to re-evaluate the Qantas Sale Act, which he branded as an “outdated policy framework.”
Meanwhile, reports have surfaced that Qantas is considering the termination of its longstanding codeshare agreement with South African Airways as the weight of regulatory hurdles continues to loom.
Reports suggest that Qantas has another year to run on the current contract, but has already began sourcing other deals so that consumers are not obstructed from booking flights a year in advance.