Fed: Opposition reluctant to lift foreign ownership limits

AAP General News (Australia)
12-03-2008
Fed: Opposition reluctant to lift foreign ownership limits

CANBERRA, Dec 3 AAP - The federal opposition is yet to be convinced about plans to
allow foreign airlines a bigger stake in Australian carriers.

British Airways has confirmed it is in merger talks with the Australian carrier.

The news came as the federal government indicated it was considering lifting from 35
per cent to 49 per cent the holding foreign airlines can have in local carriers.

The opposition wants the government to explain why the move would benefit Australia.

Opposition transport spokesman Warren Truss said British Airways once had a significant
shareholding in Qantas and that did not work.

"In the end BA sold down that shareholding in the interest of both airlines," he told ABC Radio.

"We'd need to know why this deal was better than the arrangement that was proposed
previously, and most importantly why it's better for Australia."

AAP sld/rl/imc

KEYWORD: QANTAS TRUSS

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