ASIC is being brought into the fight.
ASIC on Tuesday told
The Sydney Morning Herald and
The Age it had been in contact with Virgin to make inquiries about the allegations but declined to comment any further. Virgin confirmed it had been contacted by ASIC on the matter and "have provided them with information as requested".
Virgin chief executive Paul Scurrah first raised the allegations about Qantas along with a series of other concerns in a letter to the competition regulator the Australian Competition and Consumer Commission (ACCC) on March 22.
"We have received reports of Qantas briefing journalists on the false pretense that Virgin Australia cash reserves are running out within days and that Virgin Australia has appointed administrators," Mr Scurrah wrote to the ACCC. "We are gathering together a range of examples of this conduct to send to you.
Sources said ASIC was considering whether Qantas had breached sections 1041E and 1041F of the Corporations Act, which says a person must not make statements if they are false or materially misleading and are likely to induce others to trade in shares or that influence a company's share price.
The probe by the corporate regulator comes after Virgin claimed Qantas spread rumours about its financial position.
www.smh.com.au
With the media coverage combined with noise from the tourism sector, along with unions and the opposition support for the loan plus the smell this could be Ansett Mk3, I can't see a way the gov decides against granting the loan. The question will be what does QF get?