Australian Government clears Qantas sale

Published: 07/03/07

The Takeover of Qantas by Texas Pacific and MacQuarie Bank appears to have cleared its final major hurdle after government legislators approved the conditions for the private equity buyout of the leading Australian airline.

Issues regarding the takeover of Qantas that were under consideration from the government related to foreign ownership rules imposed on Australian businesses that require them to remain at least nominally in Australian hands.

The takeover of the airline by Airline Partners Australia: the investment vehicle being used by the banks appears to be an even shrewder move than before, after Qantas forecast an increase in profits for the year. The airline, which offers flights to Sydney from London claimed that increased demand, falling fuel costs, and higher prices for tickets along with ongoing cost cutting measures meant that it now expected profits to increase.

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