Industry leaders response to Qantas takeover
The Australian published an industry leaders response to the Qantas takeover this morning with a mixed response.
It appears that groups are divided over what the takeover of Qantas could mean for the local industry, which is already suffering.
Australian Tourism Export Council MD Matt Hingerty said the sector was concerned that the new ownership would reduce the airline’s support for Australian tourism, but Tourist and Transport Forum Australia MD Chris Brown said the acceptance of the takeover bid would put the company in an even stronger financial position, allowing for further expansion by the carrier”, adding, “Any talk that this takeover is not in the national interest is ridiculous.”
He added, “Qantas is in a far stronger position to meet Australia’s aviation needs when it has the equity to do so and this takeover bid will deliver Australia an even stronger national carrier, able to compete even more effectively in the competitive global aviation market.”
Jetset Travelworld Group CEO Michael Reed said the takeover could herald a new era, and urged continuation of the current management structure adding, “We, of course, hope that the new shareholders allow management to keep the track and focus in respect to growing tourism both outbound and inbound”.
“Qantas is in a very strong position globally as an aviation player. This probably allows it to continue to gain a strong foothold in opportunities that present themselves because of the new shareholders.”
Qantas has already made assurances that, following the sale, there will be no change to the company’s contribution to the Australian tourism industry.
Local tourism operators fear the takeover, worth $11.1 billion, could further hurt the industry, with Phil Pestonji, who runs a family touring company in Perth, worries that the takeover could lead to higher fares and fewer routes, saying, “That certainly will be a big worry if the fares go up, because we already have been hurt badly.”
“If prices go up, we can’t compete against the cheaper Southeast Asian economies.”
Data released earlier this month showed that overseas visitor numbers have dropped since the $180 million “Where the Bloody Hell Are You?” campaign was launched.
Mr Pestonji said events such as the attacks of September 11, 2001, the global economic downturn and the collapse of insurer HIH had made life difficult for small tourism operators, saying “You struggle to keep your head above water”.
Report by The Mole
John Alwyn-Jones
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