Europe puts brakes on Qantas China expansion plan

Discussion in 'Qantas Airways | Frequent Flyer' started by Chimpy, Apr 20, 2011.  |  Print Topic

  1. Chimpy
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    Chimpy Gold Member

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    From the Australian:

    AMBITIOUS Qantas plans to develop a Shanghai hub similar to its Singaporean operation are being slowed by European demands that the Qantas Sale Act be changed as part of an open skies agreement.

    The airline is keen to build on its daily flights to Shanghai and set up a hub that would allow it to connect flights from Australia to destinations in Europe.

    Australia recently concluded a bilateral aviation agreement with China that increased capacity into the world's most populous nation and gave Australian carriers the right to fly on to destinations in Europe.

    The federal government has started talks on an open-skies agreement with Europe, but Qantas chief executive Alan Joyce said the Europeans were asking for changes to the Qantas Sale Act, which limits the level of foreign investment in the airline.

    "The Europeans are putting things on the table they know they're maybe not going to get agreement on to slow her down," he said. "It's probably still only a matter of time, because everybody's moving to open skies and this is us maybe waiting for the right moment.

    [The rest can be found here]
    http://www.theaustralian.com.au/bus...a-expansion-plan/story-e6frg8zx-1226042449534
     
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  2. Kaanapali
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    Kaanapali Gold Member

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    Interesting...thanks for the heads up on this Chimpy :)
     
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  3. JALPak
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    JALPak Gold Member

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    But why would they want a hub in Shanghai to Europe connection :confused: Doesn't that involve quite a bit of backtracking? Unless if it's mainly a hub for Chinese travelers
     
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  4. Globaliser
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    Globaliser Silver Member

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    Is Qantas still in favour of changes to the Qantas Sale Act? If so, Joyce may be speaking with forked tongue here in order to try to get a double victory.
    No.
     
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  5. moa999
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    moa999 Gold Member

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    I don't think Qantas would ever have been in favour of the Sale Act.
    As a shareholder it potentially stops international funds buying at makes a takeover very difficult - not good things for the share price.
     
  6. infoworks
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    infoworks Silver Member

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    I assume they would have fith freedom rights to make the Shanghai hub worthwhile?
     

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