Australia's new limits on airline foreign ownership have come under fire due to the special treatment of Qantas.
British Airways chairman Lord Marshall claims the new limits discriminate against the foreign owners of Qantas, particularly BA.
In June, Australia's government announced, as part of a package of reforms, that it was relaxing the limits on foreign ownership of airlines. Transport minister John Anderson said the rules on Qantas would stay the same, however, because Qantas is an "Australian icon".
Before the change, foreign ownership of international carriers other than Qantas was limited to 25% for a single owner and 35% in total. Qantas is covered by separate legislation under which no single foreigner can own more than 25%. Total foreign airline equity holdings are capped at 35% and total foreign ownership is limited to 48%. BA owns 25% of Qantas, the maximum allowed.
Under the revised rules, all the limits on airlines other than Qantas were scrapped, except for the overall 49% rule.
Canberra could still block an acquisition falling within these limits if officials found it "contrary to the national interest." New Zealand owners are not considered "foreign" under any of these limits because of the single aviation market agreement between Australia and New Zealand. Air NZ's interest in Ansett Airlines is therefore free of restrictions.
Lord Marshall said during a TV interview that Australia should standardise its laws on foreign ownership. He said that allowing more foreign ownership of Ansett than Qantas "tips the balance".
BA is concerned not only with the cap on its ownership of Qantas but also with the restriction on a holding by any group of foreign airlines, he added.
Source: Airline Business