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You can find the current article at its original source at http://www.theguardian.com/world/2014/feb/16/branson-qantas-deter-investors-australia
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| Version 0 | Version 1 |
|---|---|
| Sir Richard Branson says helping Qantas will deter investors in Australia | Sir Richard Branson says helping Qantas will deter investors in Australia |
| (about 2 hours later) | |
| Sir | Sir |
| Richard Branson has taken aim at both Qantas and the government, | Richard Branson has taken aim at both Qantas and the government, |
| claiming that any taxpayer assistance for the beleaguered airline will | claiming that any taxpayer assistance for the beleaguered airline will |
| deter businesses from investing in Australia. | deter businesses from investing in Australia. |
| In | In |
| a full-page advert published in News Corporation newspapers on Sunday, | a full-page advert published in News Corporation newspapers on Sunday, |
| Branson said if the government provided financial help for Qantas, it | Branson said if the government provided financial help for Qantas, it |
| would “severely damage competition in Australia, encourage others to ask | would “severely damage competition in Australia, encourage others to ask |
| for handouts and companies worldwide would think twice before investing | for handouts and companies worldwide would think twice before investing |
| in Australia.” | in Australia.” |
| Branson | Branson |
| wrote that his Virgin Australia airline has challenged the “virtual | wrote that his Virgin Australia airline has challenged the “virtual |
| monopoly” held by Qantas, resulting in his competitor “spending endless | monopoly” held by Qantas, resulting in his competitor “spending endless |
| amounts of money to stop Virgin Australia offering more competition on | amounts of money to stop Virgin Australia offering more competition on |
| more routes.” | more routes.” |
| The | The |
| British entrepreneur added that Qantas receives the majority of | British entrepreneur added that Qantas receives the majority of |
| government spending on travel and that it should not be granted “further | government spending on travel and that it should not be granted “further |
| special privileges over all of its competitors”. He labelled treasurer | special privileges over all of its competitors”. He labelled treasurer |
| Joe Hockey’s description of Virgin Australia as a “2,000-pound gorilla” | Joe Hockey’s description of Virgin Australia as a “2,000-pound gorilla” |
| as “laughable”. | as “laughable”. |
| “Qantas | “Qantas |
| has gone to its shareholders on numerous occasions over the last few | has gone to its shareholders on numerous occasions over the last few |
| years to wage its capacity war against us,” he wrote. “Now that the | years to wage its capacity war against us,” he wrote. “Now that the |
| shareholders have turned that tap off, the company is turning to the | shareholders have turned that tap off, the company is turning to the |
| Australian taxpayer to try to bail it out.” | Australian taxpayer to try to bail it out.” |
| Branson | Branson |
| said Virgin Australia did not mind whether the government amended | said Virgin Australia did not mind whether the government amended |
| foreign ownership restrictions on Qantas, but that any financial | foreign ownership restrictions on Qantas, but that any financial |
| assistance would be detrimental to the Australian public and the | assistance would be detrimental to the Australian public and the |
| economy. | economy. |
| Tony | Tony |
| Abbott has indicated he is amenable to lifting regulations that | Abbott has indicated he is amenable to lifting regulations that |
| prohibit overseas interests owning more than 49% of Qantas, saying it | prohibit overseas interests owning more than 49% of Qantas, saying it |
| would “unshackle” the struggling company. Another option open to the | would “unshackle” the struggling company. Another option open to the |
| government is to guarantee Qantas’ debt. | government is to guarantee Qantas’ debt. |
| Labor and the Greens have said they are in favour of Qantas remaining in Australian hands. | Labor and the Greens have said they are in favour of Qantas remaining in Australian hands. |
| Mining magnate MP Clive Palmer dealt a further blow to Abbott’s plan, saying on Saturday: “Qantas | Mining magnate MP Clive Palmer dealt a further blow to Abbott’s plan, saying on Saturday: “Qantas |
| is a part of Australia’s heritage as a vital service to rural | is a part of Australia’s heritage as a vital service to rural |
| Queensland and the Northern Territory. Sales like these are nothing but | Queensland and the Northern Territory. Sales like these are nothing but |
| quick fixes and are simply the palming away of responsibility.” | quick fixes and are simply the palming away of responsibility.” |
| Qantas | Qantas |
| is set to cut 1,000 jobs after suffering a $300m loss in the first half | is set to cut 1,000 jobs after suffering a $300m loss in the first half |
| of the financial year, a position that has seen its credit rating downgraded. | of the financial year, a position that has seen its credit rating downgraded. |
| Alan Joyce, the airline’s chief executive, spent last week lobbying the government to lift the ownership restriction. | Alan Joyce, the airline’s chief executive, spent last week lobbying the government to lift the ownership restriction. |
| “Over the past five years, we have done everything in our control to | “Over the past five years, we have done everything in our control to |
| reform Qantas for the changing global economy,” he said in a speech on | reform Qantas for the changing global economy,” he said in a speech on |
| Friday. | Friday. |
| “But when one set of rules applies to Qantas, and another to our competitors, then a clear distortion exists.” | “But when one set of rules applies to Qantas, and another to our competitors, then a clear distortion exists.” |
| It’s | It’s |
| understood that Qantas disputes Branson’s assertion that it gets | understood that Qantas disputes Branson’s assertion that it gets |
| preferable treatment from the government, or that shareholders have been | preferable treatment from the government, or that shareholders have been |
| asked for funding in recent years. | asked for funding in recent years. |
| In | In |
| an official response to Branson’s letter, a Qantas spokesman told | an official response to Branson’s letter, a Qantas spokesman told |
| Guardian Australia: “There’s widespread agreement that Qantas is at a | Guardian Australia: “There’s widespread agreement that Qantas is at a |
| disadvantage because of current policy settings. | disadvantage because of current policy settings. |
| “We’ve | “We’ve |
| said many times we don’t want a handout – what we want is fair fight, | said many times we don’t want a handout – what we want is fair fight, |
| which is very much in the best interests of the travelling public.” | which is very much in the best interests of the travelling public.” |
| Virgin Australia said in a statement: “Qantas has significant | |
| advantages, including being the dominant player in the market and | |
| receiving the majority of federal government travel spend. | |
| “They | |
| are an airline that has multiple times our assets and cash reserves, a | |
| superior credit rating and a substantially larger fleet of aircraft.“Qantas are in their current financial position because of their | |
| loss-making strategy of maintaining 65% of the domestic aviation market | |
| at all costs. We believe this is at the detriment of the entire | |
| industry. | |
| “Any form of government assistance to Qantas is a means to enabling them to reinstate their monopoly.” |