Qantas Loan Bid Rejected By Australian Government

The Australian government has rejected ailing airline Qantas’ bid for an A$3bn ($2.7bn) unsecured loan. Australian PM Tony Abbott says the government acted on advice from accounting firm PricewaterhouseCoopers, in deciding against handing out the loan. He instead announced that the government plans to change rules preventing foreign investment in the flagship Australian carrier. Qantas says it has been hurt by the rules, which limit foreign ownership of the airline to just 35 per cent as part of the Qantas Sale Act. The government has previously said it intended to attempt to repeal Section Three of the act. Last week, Qantas reported a first-half loss of A$252m ($225m) and said it would cut 5,000 jobs as part of a three-year cost cutting plan to turn the airline around.

TAGS: Asia Pacific
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