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

  • Sustainability
  • Wholesalers

The Intrepid Foundation launches appeal to support Northern Vietnamese communities following Typhoon Yagi

Intrepid Travel has launched an emergency appeal through its not-for-profit, The Intrepid Foundation, to support impacted communities in Northern Vietnam following Typhoon Yagi, which made landfall on 7 September, 2024. All funds raised through the appeal will go directly to grassroots organisation Blue Dragon Children’s Foundation, to provide immediate relief to thousands without shelter, food […]

  • Aviation

Philippine Airlines and VietJet look to community connection near Western Sydney Airport

Both Philippine Airlines and VietJet will explore services from Western Sydney Airport with the airport’s proximity to the Filipino and Vietnamese diaspora in Sydney potentially beneficial to both carriers. Philippine Airlines VP revenue management and commercial planning Alex Featherstone, speaking at the CAPA Airline Leader Summit Australia Pacific, said the carrier would “explore” the potential […]

  • Tourism

Australian Cycle Tours adds new cycle trip to the Murray to the Mountains Rail Trail

Australian Cycle Tours has added a new, extended cycle trip that includes all sections of the popular Murray to the Mountains Rail Trail. The new trip commences in Beechworth with the first two days cycling with a transfer back to Beechworth, before continuing to Myrtleford and Bright, with a cycle on the newest sections of […]

  • Events
  • News

Anangu Communities Foundation raises $75,000 at its third annual Sydney fundraiser

Generous supporters gathered at the Sofitel Sydney Darling Harbour for the third annual Anangu Communities Foundation Sydney fundraiser to help raise $75,000. Voyages Indigenous Tourism Australia administers the Foundation which so far has funded over $3 million in projects to support Anangu communities of Central Australia with a focus on building community capacity in healthcare, […]

  • News
  • Travel Agents

‘Virtuoso on Tour’ photos: Virtuoso showcases its best to agent base

Virtuoso hosted its second annual Virtuoso On Tour,  a destinations event at the ICC in Sydney showcasing tour operators, tourism boards and more to its agent family. The event is designed for travel agency members in Australia and New Zealand to network with Virtuoso partners across the globe. It housed six destination-themed pavilions (Australia & […]