Australian Government Refuses to Offer Qantas Debt Guarantee

This post was originally written for The Global Panorama, and has been uploaded here as part of a growing portfolio of work.

Australian Prime Minister Tony Abbott has announced that his Liberal Government will not offer suffering Australian airline Qantas Airways a debt guarantee, but will instead seek to repeal part three of the Qantas Sales Act.

The Qantas Sales Act of 1992 restricts foreign ownership of the traditionally Australian airline.

‘We do not believe in Government by chequebook’, PM Abbott said at a last minute media conference in Parliament House in Canberra.

Qantas plane. SOURCE: Wikimedia.

Qantas plane. SOURCE: Wikimedia.

The Prime Minister repeated his election promises, saying; ‘Australia is under new management and, I believe, much better management than the government of 2007-2013.’

The Federal Government’s response comes as Qantas management last week announced it will cut 5,000 jobs in Australia over the coming years.

Since Tony Abbott’s government came to office in September 2013, more than 54,000 jobs have been lost in Australia.

Qantas, fondly known to Australians as ‘The Flying Kangaroo’, is Australia’s largest airline, and the second oldest in the world.

This post was originally published on March 3, 2014.

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