Ryan N
28th March 2012, 02:31 PM
http://www.news.com.au/business/breaking-news/fiji-to-take-air-pacific-control-from-qantas/story-e6frfkur-1226312508383
FIJI'S military government today said it was taking control of national carrier Air Pacific from Australia's Qantas in a decree ruling that all Fijian airlines must now by owned by locals.
"With this law, the... government has now corrected the activities of prior Fijian governments, which allowed foreign citizens to control Fiji's national airlines," the decree on the Government's website said.
The Fiji Government owns 51 percent of Air Pacific, while Qantas has 46.3 per cent, but the Government said the Australian carrier had effective control of the airline "through supermajority and veto rights".
"While Qantas currently has veto power over most areas of Air Pacific's operations and business decisions, Qantas also competes directly against Air Pacific through its wholly-owned low cost carrier subsidiary, Jetstar," it said.
The Government denied the move amounted to nationalisation of Air Pacific, saying Qantas would retain its shareholding without the veto rights.
"That is absolutely false and misleading (to compare to to nationalisation)," it said. "Ownership of shares remains with Qantas, and dividends will be paid as and when declared."
No comment was immediately available from Qantas.
FIJI'S military government today said it was taking control of national carrier Air Pacific from Australia's Qantas in a decree ruling that all Fijian airlines must now by owned by locals.
"With this law, the... government has now corrected the activities of prior Fijian governments, which allowed foreign citizens to control Fiji's national airlines," the decree on the Government's website said.
The Fiji Government owns 51 percent of Air Pacific, while Qantas has 46.3 per cent, but the Government said the Australian carrier had effective control of the airline "through supermajority and veto rights".
"While Qantas currently has veto power over most areas of Air Pacific's operations and business decisions, Qantas also competes directly against Air Pacific through its wholly-owned low cost carrier subsidiary, Jetstar," it said.
The Government denied the move amounted to nationalisation of Air Pacific, saying Qantas would retain its shareholding without the veto rights.
"That is absolutely false and misleading (to compare to to nationalisation)," it said. "Ownership of shares remains with Qantas, and dividends will be paid as and when declared."
No comment was immediately available from Qantas.