Qantas chief rules out capital raising for Australia's national carrier

By VCPOST Staff Reporter

Dec 02, 2013 11:45 PM EST

Qantas Airways Ltd Chief Executive Officer Alan Joyce has ruled out that the Australian airline would be raising new capital. Joyce said the public was in favor of Qantas being majority locally owned, according to Business Spectator.

Speaking while working on a code-share deal with China Southern in Guangzhou yesterday, Joyce said Qantas was in discussion with the government to work out several options to help the airline compete better with its arch-rival Virgin, the report said.

Prime Minister Tony Abbott said yesterday he was open to revising the Qantas Sale Act that hinders foreign ownership in the company. However, Abbott did not guarantee that the government would become a Qantas shareholder, the report explained.

Ratings agency Moody's has said aid from the government would help Qantas maintain its investment-grade credit rating. Fund managers have also encouraged the airline to raise fresh capital to boost its balance sheet, Business Spectator reported.

Joyce said on the issue of raising fresh capital, "We've been very clear in our position. We have $2.8 billion in cash. We have a position where we have a number of non-core assets we are selling and we are in the position where we have a number of unencumbered aircraft. We have lots of flexibility and there are lots of options that the group has going forward."

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