China Southern supports plan to back Qantas stake - report

By VCPOST Staff Reporter

Dec 06, 2013 02:08 PM EST

State-run China Southern, Asia's biggest airline, held detailed discussion last year with a group including Qantas chief executive Geoff Dixon, retail king Gerry Harvey, and adman John Singleton. The said meeting aimed to encourage the Chinese airline to back the syndicate's stake in the national carrier Qantas Airways Ltd, according to The Australian.

The consortium had acquired a stake of around 2% in troubled airline Qantas. The group is believed to have grown impatient waiting for China Southern's commitment and quietly sold their stake early this year. The shares were reportedly sold for an estimated profit of USD18 million, the report said.

Tan Wangeng, president of the Asian airline, said this week the firm had no plans to invest in Qantas. However, speculations abound that this may change should the Australian government repeal the Qantas Sale Act. Under this act, foreign investment in the Australian airline is limited to a maximum of 49%, the report explained.

Yesterday, Prime Minister Tony Abbott said he might consider allowing foreign firms to grab a bigger stake in Qantas. He added he would be happy to see changes to the Qantas Sales Act if no cost were to fall on taxpayers, The Australian reported.

© 2024 VCPOST, All rights reserved. Do not reproduce without permission.

Join the Conversation

Real Time Analytics