The Australian competition watchdog has begun an investigation into the A$11.1 billion ($12.76 billion) takeover of Qantas because of concerns other airlines may be disadvantaged by consortium partner Macquarie Bank's investment in Sydney Airport.
Qantas directors recommended the bid be accepted from a consortium of Macquarie, US private
equity firm Texas Pacific Group, homegrown investment companies Allco Equity Partners and Allco Finance Groupand Canadian buyout group Onex Corp.
In announcing a review of the deal, the Australian Competition and Consumer Commission noted that Macquarie and other members of the consortium already had interests in the aviation industry.
"Macquarie Bank holds a 49 per cent interest in Sydney Airport and some of the consortium members have interests that relate to the air transport industry," said commission chairman Graeme Samuel.
"The ACCC will closely assess the likely effect of the proposed acquisition on competition including how the proposed acquisition would affect customers, suppliers and other competitors in the air transport industry."
Qantas boss Geoff Dixon said passengers would notice no difference once the sale was finalised.
And, he said, rather than Qantas being broken up, he expected the national carrier to grow.
"We have no plans to sell off any of the assets at the moment, certainly we have no plans ever to break theairline up or to sell off any major part of the airline, the operating airline itself."
Dixon said passengers would notice no difference to service and there would be no changes to frequent flyer points.
He said job losses were not inevitable but Qantas needed to become more efficient to retain a competitive edge.
- AAP
