Qantas pilots have launched a Federal Court action yesterday that could sunbstantially damage APA’s $11 billion bid for the airline.
The Australian and International Pilots Association is seeking a ruling from the Federal Court that Qantas subsidiary, Jetstar, is operating illegally because the Qantas Sale Act prevents the airline from operating international passenger services under any other name.
AIPA President Ian Woods says that the court action could substantially damage the takeover bid, which as previously covered in TravelMole appears to be based on the Qantas transferring significant numbers of routes and operations to Jetstar.
The Qantas Sale Act requires that Qantas’ main operational base and headquarters both remain in Australia and that foreign ownership does not exceed 35%, with Qantas having said that Jetstar is not covered by the Act.
The court case is listed for April 27 in Sydney, but Ian Woods has also called for an independent parliamentary inquiry to review the takeover and for and amendment of the Act to be presneted to Parliament to that it applies to all Qantas businesses and subsidiaries.
At the same time, Family First senator Steve Fielding is introducing legislation today to prevent Jetstar becoming foreign owned and for Jetstar jobs and operations goign overseas.
Report by The Mole
