THE AUSTRALIAN Government has raised limits on foreign ownership in Qantas Airways to 49%, ahead of the carrier's privatisation, although individual holdings will still be restricted to 25%.
The policy switch, announced on 9 May, is designed to widen the base of potential investors when the airline's privatisation flotation takes place later this year. The limit had been 35%.
The new rule will not affect the Qantas partnership with British Airways, however, since the limit for individual foreign carriers will remain unchanged.
The move would align rules on the Qantas sale with the proposed Air New Zealand purchase of 49% of Ansett, still in negotiation. Finance minister Kim Beazley says that the lift is aimed at putting the airline on "a similar competitive footing" to existing and possible future Australian competitors.
Rules still require the chairman and at least two-thirds of the board to be Australian citizens.
Source: Flight International
