Caught In The Act

Qantas fought long and hard for major changes to the Qantas Sales Act (QSA). Adjustments to the legislation came in July but most industry insiders, including the airline itself, believe the result is a watered down political compromise that ignores the realities of today’s airline world

Anyone listening for the sound of champagne corks popping at Qantas headquarters after the Qantas Sale Amendment Bill 2014 finally limped through Parliament to become law recently would have been disappointed. There were no celebrations, with good reason. As chief executive Alan Joyce prepared to announced a 2013-14 annual pre-tax loss expected to be around $747 million – with speculation one-off costs and write-downs could lead to a net loss of more than $1 billion – the paltry compromise adjustments to the Act simply don’t go far enough and are unlikely to offer much assistance in turning round the carrier’s fortunes.

It is a view shared by most outside the Byzantine political arena that is Australian politics. As Sydney-based consultancy CAPA – Centre for Aviation put it: “Qantas has already also taken a major step by sealing an essential partnership with Emirates. But much more is needed – especially if Australia’s airlines are to become a force in the potentially vast Asian market. Negligently hobbling one airline in the cause of rhetoric is merely handicapping it in the race to survive and prosper. ” Qantas’s muted reaction said it all. “It’s positive that there’s general agreement that Qantas is disadvantaged by the sale act and that change is needed,” it said in a brief statement. But while it welcomed the raising of the level of allowable foreign airline ownership the carrier stressed that removing all restrictions “that apply only to Qantas” remains its preference for levelling the playing field.