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SYDNEY - Australian defence contracts could end up in foreign hands if a US-led consortium succeeds in a Qantas takeover bid, a union says.
A consortium led by US private equity firm Texas Pacific Group and Macquarie Bank is believed to be conducting due diligence of Qantas with the aim to acquire just under 50 per cent of the airline in a A$10 ($11.63) billion deal.
The Transport Workers' Union (TWU) said Qantas had, in the past year, handled A$28 ($32.56) million in Australian defence contracts, including the maintenance of Air Force planes, security escort for the immigration department, and transport of confidential defence department goods.
The airline also had a record of responding to national security challenges and disasters such as returning the wounded from Bali or retrieving Australians from Lebanon, said TWU national secretary Tony Sheldon.
"Qantas is more than just a national icon, it is a frontline operator heavily involved in helping to protect Australia's security and national interests," Mr Sheldon said.
"We don't know whether the consortium involved in the bid is bound by national security laws when corporate headquarters are overseas."
"We don't know how they plan to handle Australia's defence contracts or deal with any international conflicts of interest that may arise."
The TWU wanted Qantas and any prospective bidder to give an enforceable undertaking to protect jobs and conditions of workers and guarantee that Australian national interests would remain in Australian hands, Mr Sheldon said.
- AAP
