Government clips merger’s wings

The planned merger of British Airways and Qantas is no sure thing.

The Federal government is spelling out tough terms, for the proposed merger.

That task fell to Antony Albanese, whose complex ministry includes transport.

“The Australian government believes in an Australian based and a majority Australian owned Qantas,” he says.

“At no stage has the government indicated support for any other proposal, in principle or otherwise,” he adds.

But Albanese also admits that Qantas has informed him that it is “exploring a potential merger” with British Airways.

But he insists that no proposal has yet been put to the government for approval.

“Any merger would need to comply fully with Qantas’s obligations under the Qantas Sale Act, the Foreign Acquisitions and Takeovers Act, the Trade Practices Act and Australia’s international air services agreements,” Albanese warns.

So what does all that mean?

Well the Qantas Sales Act, for a start, means that this airline’s main operational base and headquarters must remain in Australia.

The name Qantas must also be preserved.

The company must be incorporated in Australia.

Two thirds of its board must be Australians.

So must the chairman.

Presumably, though, Qantas knew all this, when it opened these talks with its British rival.

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