The AFR says that the Federal Government has admitted that legislation aimed at keeping Qantas’ operations based in Australia do not apply to its subsidiary businesses, including Jetstar.
The news about the massive clanger loophole is contained within legal advice provided to the Federal Government as part of the material related to the $11 sale of Qantas to APA.
This siginficant revelation means that the Qantas Act does not apply to a very large part of the business being acquired by AOA and is especially surprising as Jetstar and in particular its future potential scope for expansio and profit was considered to be critical element of the reason for the purchase.
Thsi news will not further complicate the potettial sale of the airline and also add to the concerns held by union and Liberal backbenchers that maintenance jobs could head offshore.
A spokesman for Transport Minister Mark Vaile said because Jetstar was operated in its own right, it was not bound by the provisions of the Qantas Act and a Qantas spokesman also confirmed the Act did not apply to the subsidiary airline, which flies domestically as well as to destinations in Asia and New Zealand.
Report by The Mole
