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CANBERRA - The proposed foreign takeover of Qantas Airways Ltd has the potential to severely test Australia's aviation laws, an expert says.
One day after Qantas confirmed it was a takeover target, Peter Harbison, of the Centre for Asia Pacific Aviation, says any movement of Qantas shares offshore would test the airline's legislated foreign ownership cap.
"The pursuit of Qantas by a consortium involving (US private equity firm) Texas Pacific Group and (Australia's) Macquarie Bank has the potential to test the Australian government's aviation regulatory strategy," Mr Harbison said.
Outrage at the news of the foreign takeover cooled when Macquarie, which is leading the takeover consortium, confirmed it had no plans to take ownership of the flying kangaroo offshore.
But that pledge only came after Transport Minister Mark Vaile was forced to promise the government would never lift the foreign ownership cap.
The takeover, Mr Harbison said, was unsurprising given the lean and profitable position of Qantas.
"Qantas is a plum target -- a financially robust carrier with a strong track record and access to the world's fastest growing markets, in the Asia Pacific," he said.
Any bid could value Qantas at almost A$11 billion ($12.81 billion) and could lead to some parts of the airline being sold off.
Shares in the airline closed 15 per cent higher yesterday at A$5, up 65 cents.
- AAP
