FIRB gives APA’s Qantas purchase the go ahead
The Federal Government’s Federal Investment Review Board has given the go ahead for APA’s $11 billion purchase of Qantas to go ahead after agreeing to provide a Deed of Undertaking that will ensure Qantas remains majority Australian owned.
Treasurer Peter Costello announcing the decision in Canberra said that whether the takeover is successful is now a matter for shareholders.
Mr Costello was adamant that foreign ownership of the Australian icon would not proceed and said terms and conditions in the Deed of Undertaking ensuring the airline remains Australian controlled.
In addition, the majority of Qantas’ directors will be Australian citizens and the airline will continue its frequent flyer program, with Mr Costello saying that the legal techniques for enforcing the Deed are actually stronger than in relation to the current Qantas. He also added, “The Government is not recommending this bid, with the government allowing shareholders to make their decision.”
It appears that the enforceable deed of undertaking was provided by Airline Partners Australia with the deed also promising that maintenance and repairs would be carried out in Australia and that Qantas’ frequent flyer program would remain.
APA Director Bob Mansfield said the undertakings were extensive, adding, “The government’s decision follows a rigorous review by the Foreign Investment Review Board and government departments and the provision of extensive information by APA and its consortium members”.
While he claims that all that remains now is for shareholders to accept the Qantas board recommended $5.60 per share offer, there is still the possibility of institutional shareholders refusing to sell at the share offer price.
Mr Mansfield said, “Some of the institutions may believe that the price should have been higher, but the consortium is unable to raise it, unless there’s a rival bid, so it’s still a case of whether those institutions are prepared to budge.”
The Government said the Foreign Investment Review Board had found that an APA takeover of Qantas would not breach foreign ownership laws.
Report by The Mole
John Alwyn-Jones
Vegas’s Billion-Dollar Secrets – What They Don’t Want Tourists to Know
Visit Florida’s New CEO Bryan Griffin Shares His Vision for State Tourism with Graham
Chicago’s Tourism Renaissance: Graham Interviews Kristin Reynolds of Choose Chicago
Graham Talks with Cassandra McCauley of MMGY NextFactor About the Latest Industry Research
Destination International’s Andreas Weissenborn: Research, Advocacy, and Destination Impact
Graham and Don Welsh Discuss the Success of Destinations International’s Annual Conference
Graham and CEO Andre Kiwitz on Ventura Travel’s UK Move and Recruitment for the Role
Brett Laiken and Graham Discuss Florida’s Tourism Momentum and Global Appeal
Graham and Elliot Ferguson on Positioning DC as a Cultural and Inclusive Global Destination
Graham Talks to Fraser Last About His England-to-Ireland Trek for Mental Health Awareness
Kathy Nelson Tells Graham About the Honour of Hosting the World Cup and Kansas City’s Future
Graham McKenzie on Sir Richie Richardson’s Dual Passion for Golf and His Homeland, Antigua
ADS PRO 
Qatar Airways offers flexible payment options for European travellers
Phocuswright reveals the world's largest travel markets in volume in 2025
Cyclone in Sri Lanka had limited effect on tourism in contrary to media reports
Skyscanner reveals major travel trends 2026 at ITB Asia
Higher departure tax and visa cost, e-arrival card: Japan unleashes the fiscal weapon against tourists