Qantas objects to Virgin restructure

Qantas objects to Virgin restructure
By admin

Qantas has objected to Virgin Australia’s plan to split its domestic and international operations, arguing it could put the carrier in breach of numerous Air Service Agreements (ASAs).

The flag carrier insisted the restructure created a “real risk” of the carrier operating as an Australia-designated international airline but with foreign owners pulling the strings.
“Qantas is very concerned that the proposed restructure is likely to result in foreign persons having effective control of the day-to-day operations of Virgin Australia International Holdings (VAIH),” Qantas general counsel Brett Johnson said.
He referred to Virgin’s admission that the newly-formed International division entity would be “comprehensively serviced, managed and funded” by domestic arm Virgin Australia Holdings (VAH).
If foreign shareholding of VAH exceeded 49% – which would be permitted under the new structure – it could no longer be considered an “Australian Person”, he contended.
This would mean VAIH would fall under foreign control, putting it in breach of the Air Navigation Act (ANA), which limits foreign ownership of Australian international airlines to 49%.
The objection was submitted to the International Air Services Commission in response to Virgin’s request that its capacity on the Indonesia route be transferred from VAH to VAIH.  
Qantas further urged the IASC to undertake a comprehensive public review to ensure VAIH complied with all relevant ASAs.
Virgin Australia created VAIH to hold its international airlines as a method of sidestepping regulations and clearing the way for further foreign investment in its domestic operations (Travel Today, February 23).
A statement from the airline said: “The VAH board of directors and management believe that the proposed new structure is the best option for Virgin Australia and its stakeholders to ensure long-term growth and access to capital for its business.”

Latest News

  • Destinations
  • News

APT Launches 2025 Asia Adventures

APT has launched its Asia Adventures for 2025, including new luxury holidays in India, Sri Lanka and Japan. Five new tours lead guests to the highlights of India, including a seven-night cruise along the rarely travelled Lower Ganges aboard the Ganges Voyager. Further south, Sri Lanka’s greatest destinations are revealed on a new 15-day Land […]

  • Cruise
  • Luxury
  • News

Seabourn announces Western Kimberley Traditional Owners as Godparents of Seabourn Pursuit

Seabourn has named Western Kimberley Traditional Owners, the Wunambal Gaambera, as Godparents of the ultra-luxury purpose-built Seabourn Pursuit. It is the first cruise line to appoint Traditional Owners as godparents of a ship. Seabourn Pursuit embarks on its inaugural season in the Kimberley region this June. The naming ceremony will take place on Seabourn Pursuit’s […]

  • Luxury

Malolo Island Resort opens brand new Spa

Fiji’s Malolo Island has added another string to its bow – opening its $1.3 million day spa on Thursday, 18th April 2024. (Lead Image: matriarch Rosie Whitton with spa staff) Located at the edge of the resort’s luscious patch of tropical rainforest, the new “Leilani’s Spa” adds another level of elevated experiences to Malolo’s already […]