Not a 'bottomless pit of cash'! Emirates airlines refuses to bail out struggling partner Qantas
Qantas blamed its predicament on record fuel costs and fierce competition from subsidised rivals.
Click here to add Abu Dhabi’s Etihad Airways as an alert
Disable alert for Abu Dhabi’s Etihad Airways,
Click here to add Air New Zealand as an alert
Disable alert for Air New Zealand,
Click here to add Alan Joyce as an alert
Disable alert for Alan Joyce,
Click here to add Emirates as an alert
Disable alert for Emirates,
Click here to add Etihad Airways as an alert
Disable alert for Etihad Airways,
Click here to add Qantas as an alert
Disable alert for Qantas,
Click here to add Singapore Airlines as an alert
Disable alert for Singapore Airlines,
Click here to add Standard & Poor as an alert
Disable alert for Standard & Poor,
Click here to add Tim Clark as an alert
Disable alert for Tim Clark,
Click here to add Virgin Australia as an alert
Disable alert for Virgin Australia
Emirates president Tim Clark said he is carefully watching developments at alliance partner Qantas, but ruled out throwing a financial lifeline to the embattled Australian flag carrier, in comments reported on Monday.
Earlier this month, Qantas forecast a half-year loss of up to $269 million and said it would axe 1,000 jobs, leading to a credit downgrade from Standard & Poor’s, which cut its rating to “junk” status.
Qantas blamed its predicament on record fuel costs and fierce competition from subsidised rivals, particularly Virgin Australia, which is majority owned by Singapore Airlines, Air New Zealand and Abu Dhabi’s Etihad Airways.
Chief Alan Joyce has been lobbying the government to relax the Qantas Sale Act, which limits foreign ownership in the national carrier to 49 per cent, arguing the cap hurts its ability to compete, particularly against Virgin Australia. But even if the government decides to lift the foreign ownership restrictions, which it has indicated is possible, Clark said he would not be pumping in any cash.
In an e-mailed statement to the West Australian newspaper, Clark said he “would watch it [the situation] carefully” but Emirates did not have the “bottomless pit of cash” Virgin Australia’s partner Etihad Airways had.
“So no, equity is not on the table,” Clark said.
- Al Tayer bucks the US department store trend with Bloomingdale's Kuwait opening
- Gulf Islamic banks set to outperform conventional banks for second year: Moody's
- Jordan secures EU finance for socioeconomic and environmental programs
- Same-day service deliveries in GCC an untapped market: Wing CEO
- Will terror attacks damper Arabs' appetite for European holidays?
- Despite potentially 'sucking away customers', new Emirates alliance declared 'absolutely fantastic' by Qantas chief executive
- Emirates and Qantas deal cleared for take-off
- Emirates European bookings take-off following Qantas link-up
- British Airways in talks to raise stake in Qantas
- A European legacy of distrusting Gulf airlines? Global airlines alliance model 'fractured', says Etihad CEO