Fiji’s military-controlled government is putting the squeeze on Qantas by attempting to snatch greater control of its national carrier, Air Pacific.
A new law stipulates that Air Pacific will have to be under the ”substantial ownership and effective control” of the government, a Fijian citizen or a corporation which is at least 51% owned by Fijians.
Another stipulation is that at least two-thirds of Air Pacific’s board is Fijian, and that the airline is ”under actual and effective control of Fijian citizens”.
Qantas, which has a 46% stake in Air Pacific, has maintained effective control over the airline through various voting rights and vetoes, including the appointment of the chairman, deputy chairman, annual operating budget, management appointments and ”numerous other key areas of oversight, control and decision-making”.
