That's called protectionism. Its all very well, until other countries 'prioritise' their companies over foreign competitors (Australian). For instance, the UK government might force LHR to take landing slots off the foreign airline Qantas and give them to BA, to protect "the national flag-carrier" over foreign competitors. France might force Airbus to prioritise aircraft deliveries to European airlines, not those nasty competing foreigners; ditto the US Govt and Boeing. How would Qantas be off then?
This is not a tit-for-tat fairytale land. Just because Australia makes a decision to favour its Australian-owned airlines over foreign-owned airlines domestically doesn’t mean your doomsday scenario above will even come close to eventuating.
But let’s consider your point in the
reverse situation. You clearly don’t realise the reverse situation in the point you make is already happening. Canada, in 2024, forces all its domestic airlines to be 51%> Canadian owned. The USA, in 2024, forces all of its domestic airlines to be at least 75% American owned. Japan’s Government, in 2024, only allows for its airlines to be at most 33% foreign owned (hence QF’s stake in GK is 33%). Qantas isn’t allowed majority control of Jetstar Asia because the Singapore Government restricts its airlines to be at least 51% Singapore owned. The EU, UK have similar rules. So much protectionism alive, well and thriving in 2024! (Gasp!
) I don’t see these rules being relaxed anytime soon, if anything they’re more likely to be
tightened. Australia is late to the party, so why shouldn’t Australia introduce a maximum foreign ownership limit for domestic airlines, to protect the national interest? In your hypothetical titfortat logic, this should happen, right? Australia is the only developed country allowing new domestic airlines to be 100% foreign owned, and that’s doing a disservice to our country.
This point was brought up by the former Qantas CEO not that long ago:
“We’re in the position in Australia where any carrier can be 100 per cent foreign owned and that doesn’t happen anywhere else in the globe. In the US, you can only be 25 per cent foreign owned. I think in Japan to have an airline you can only have 33 per cent of foreign equity on it.
“So what’s great for the Australian travelling public is they’ve got these big American private equity companies setting up airlines here that are 100 per cent owned by them and you’ve got the Singaporean companies investing in an airline like Rex.”
Qantas is 82 per cent Australian owned, “the biggest percentage we’ve ever had since we were privatised”, Mr Joyce said.
Mr Joyce described Qantas as “the little Aussie battler” that was going up against big foreign investments.
Qantas is restricted to 51>% Australian ownership to protect national icon status, more than it is to protect the national interest. Imposing a maximum foreign ownership limit on
all airlines, including VA and Rex will bring them back down to earth and make em’ fight for survival, but all for the greater good as Australia simply starts enforcing the national interest like what other developed countries have been doing for decades and will continue to do. The EU is considered as a single country in this case (where EU airlines must be at least 51% EU owned), so it’s mostly
third world countries who join Australia in allowing 100% foreign owned airlines to be based their country.
. Have a read of the linked article:
