Australian government rejects Qantas $2.7bn loan request

Qantas plane Qantas says it has been hurt by rules limiting foreign ownership of the airline to just 35%

The Australian government has rejected struggling airline Qantas's request for an A$3bn ($2.7bn; £1.6bn) loan.

Instead, Australian Prime Minister Tony Abbot said the government plans to change rules preventing foreign investment.

However, Mr Abbot has not yet won support of opposition senators, who say the move could send jobs overseas.

Last week, Qantas reported a first-half loss of A$252m ($225m; £135m) and said it would cut 5,000 jobs.

"We sent in various experts to have a look at Qantas, and the conclusion that we came to based on their advice was that Qantas does not need an unsecured facility from the government," said Mr Abbot in an interview with local radio.

The Australian government is being advised by accounting firm PricewaterhouseCooper.

Current ownership rules, which date back to the 1990s when Qantas was made private, limit the total foreign holding in the airline to 49%, with foreign airlines allowed to own just 35%.

Qantas has said this has hurt its growth.

More on This Story

More Business stories



  • Polish and British flags alongside British roadsideWar debt

    Does the UK still feel a sense of obligation towards Poles?

  • Alana Saarinen at pianoMum Dad and Mum

    The girl who has three biological parents

  • Islamic State fighters parade in Raqqa, Syria (30 June 2014)Who backs IS?

    Where Islamic State finds support to become a formidable force

  • Spanish volunteer Rafa Munoz Perez practising with a rifle in Donetsk, 7 August Motley crew

    The Europeans who pitch up in Ukraine to join the fight

From BBC Capital


  • Art installationClick Watch

    How one artist is using computer code to turn internet radio into a unique piece of music

BBC © 2014 The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.