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John Wensveen pens Op-Ed for Runway Girl Network

Posted by on March 10th, 2014

Australia should remove ownership restriction

Airlines are the root of the global economy as well as regional economies. Airlines “tie” the six regions of the world together (North America, LatAm/Caribbean, Asia-Pacific, Europe, Middle East, Africa). Inevitably, Qantas has been one of the most important airlines in the history of aviation and has been able to survive the trials and tribulations impacting aviation. However, Qantas’ fate is more important than ever before as the airline faces continuous competitive pressure in both the domestic and international markets.

In theory, Australian aviation operates in a deregulated environment and yet, many restrictions still apply, particularly in the area of foreign ownership. Qantas is a legacy carrier plagued by legacy characteristics. The business model was developed during a time of regulation and like airlines in other markets forced to adapt to liberalized or deregulated environments, Qantas has not had the opportunity to reinvent itself and take advantage of a new platform like many of its competitors. The Qantas Sale Act of 1992 put serious restrictions on the airline’s ability to optimize performance due to the associated foreign ownership restrictions.

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