Emirates rules out buying Qantas
Qantas' new alliance partner Emirates has dismissed taking a stake in the besieged Australian icon, dashing hopes of a quick equity fix for its financial woes.
Emirates president Tim Clark told _The West Australian _yesterday the airline "would watch it (the situation) carefully" but did not have the "bottomless pit of cash" Virgin Australia's partner Etihad Airways had.
"So no, equity is not on the table," Mr Clark said.
Prime Minister Tony Abbott flagged yesterday he would consider easing the Qantas Sale Act, but while saying he would consider any proposal from Qantas, stopped short of meeting calls to change foreign-ownership laws.
The PM said Qantas, including staff, management and shareholders, had to fight its own battle.
Qantas wants the Government to help it fight Virgin Australia, which is backed by three foreign airlines - Air New Zealand, Singapore Airlines and Etihad.
Virgin moved into the domestic business-class market two years ago and is savaging Qantas' dominance in the corporate market.
While Virgin is raising $350 million through its foreign partners, Qantas has forecast a record $300 million loss for the six months to December 31 and its investment rating has been downgraded to junk status.
Qantas and Virgin blame each other for the fare war. Qantas claims the once low-cost airline is muscling in on Qantas' 65 per cent market share strategy. Virgin argues Qantas has no right to such a big slice and says it is just adding competition and reducing fares with its lower cost base.
According to reports, Qantas pilot Ian Woods has suggested a bid by airline employees to buy a 25 per cent stake in the carrier.
Capt. Woods, a 30-year veteran, said he was examining whether a staff bid for a $500 million stake in Qantas was feasible. He had written to Mr Abbott about the plan but had not had a response.
For an analysis of what is wrong with Qantas, see www. AirlineRatings.com.
