No taxpayer lifeline for troubled Qantas

Tony Abbott has announced that the Government will not play favourites with Qantas and give everyone a fair go.

THE Abbott Government has refused to offer a taxpayer lifeline for struggling airline Qantas and will instead push ahead with new laws which could see Australian jobs go offshore.

Prime Minister Tony Abbott said he "did not believe in government by chequebook'' as he rejected Qantas' plea for a debt guarantee, which the Government estimated could leave taxpayers liable for as much as $7 billion.

MORE: 'NO GOVERNMENT BY CHEQUE BOOK'

Instead, the Government will seek to open up the airline to foreign ownership, with laws to repeal parts of the Qantas Sale Act to remove the requirement the national carrier stay in Australian hands.

Tony Abbott with Warren Truss and Treasurer Joe Hockey announced their decision on Qantas. Source: News Corp Australia

"Just because a business in not wholly owned by Australians doesn't mean that it is not in a real sense an Australia business,'' Mr Abbott said after a two-hour Cabinet meeting.

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Qantas said last night that the removal of foreign ownership provisions were an "important long-term objective'' but the airline needed immediate Government action to compete with its foreign-owned rival Virgin Australia.

Prime Minister Tony Abbott outlines the removal of part three of the sale act in relation to Qantas and it's future survival.

Qantas executive manager of corporate affairs Andrew McGinnes said: "If this proposal by the Government to change the Qantas Sale Act is not passed, we would expect the Government and the Parliament to consider alternative measures to balance the unlevel playing field in Australian aviation.''

Since announcing a $252 million half-year loss and plans to cut 5000 jobs last week, CEO Alan Joyce has repeatedly said the airline did not need a change to the Act in the short-term, but a Government guarantee.

The Government will make changes to parts of Qantas Sale Act. Source: Getty Images

And with Labor, the Greens and the Palmer United Party all opposed to it, the future of Qantas may be headed for a parliamentary stalemate.

MORE: ABBOTT AGAINST DEBT GUARANTEE

READ: QANTAS ANNOUNCES JOB CUTS, SELLING ITS MELBOURNE AIRPORT TERMINAL

Mr Abbott rebuked the airline last night, saying: "I think what Qantas would like most of all is for the Government to play favourites.'' He also praised Qantas' archrival Virgin, saying it was considered an Australian company, despite being foreign-owned.

He confirmed that the changes could see more Qantas jobs lost from Australia.

Qantas CEO Alan Joyce. Source: Supplied

"If some jobs have to go offshore in order to ensure Qantas has a strong and viable long-term future, it may be regrettable but nevertheless it is the best way to guarantee Australian jobs in the long run,'' Mr Abbott said.

He confirmed that the changes may require Qantas to split its international and domestic businesses, as Virgin Australia has, in order to meet operating requirements under the Foreign Investment Review Board and the Air Navigation Act.

Mr Abbott sought to put political pressure on the Labor Party, calling on it to abandon its objections to Qantas falling into foreign hands.

Qantas has earlier announced huge losses and 5000 job cuts. Source: News Corp Australia

"It is incumbent upon serious people in this Parliament to give us a way forward, and the only way that Labor is really offering is basically offering to get out the cheque-book,'' Mr Abbott said.

But Opposition Leader Bill Shorten was resolute last night, saying: "We will fight to keep Qantas Australian." Labor would not back any move to take Qantas out of Australian majority ownership.

Greens deputy leader Adam Bandt also restated his party's opposition to the plans saying: "Tony Abbott is out to kill Qantas as our national carrier".

Prime Minister Tony Abbott outlines the removal of part three of the sale act in relation to Qantas and it's future survival.

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