Bangkok--19 Dec--eTurboNews
As Qantas Airways accepted a sweetened $11.1 billion takeover bid from an international consortium, a senior official with Tourist and Transport Forum Australia (TTF) has stated that the decision would help the tourism sector in the long-run.
Qantas Airlines Ltd. accepted an $11.1 billion takeover bid from private equity consortium Airline Partners Australia (APA). Significantly, the consortium, which also includes local investment groups Allco Equity Partners and Allco Finance Group and Canadian buyout group Onex Corporation, said Qantas would remain majority-owned and controlled by Australians. The takeover bid was accepted after APA consortium lifted its offer from $5.50 to $5.60 per Qantas share. The buyers supported Qantas' current growth strategy, saying they would not break up the airline, cut regional services or move maintenance operations offshore.
TTF managing director Christopher Brown said the aviation sector is critical to the health and prosperity of Australia's tourism industry. ". . . Any talk that this takeover is not in the national interest is ridiculous," Brown reportedly said.
"Qantas is in a far stronger position to meet Australia's aviation needs when it has the equity to do so. This takeover bid will deliver Australia an even stronger national carrier, able to compete even more effectively in the competitive global aviation market," said Brown, according to news.com.au.
The consortium has been structured to meet requirements that Qantas remain majority Australian-owned and no individual foreign shareholding exceed 25 percent.
Airline Partners Australia director Bob Mansfield says the consortium is made up of local and global companies but the airline's overall ownership will stay Australian. "Airline Partners Australia acknowledges the significant responsibility of owning Australia's national flag carrier and we don't take that responsibility lightly. We are majority Australian-owned. Two thirds of our board will be Australian citizens. Qantas will remain majority Australian-owned in every sense by way of voting rights and economic interest."
Meanwhile, Australia's Prime Minister John Howard said the government would keep an eye on Qantas' return to private hands, after 11 years as a listed company, but not seek to interfere in the transaction.