NSW: Labor worried about debt in the Qantas deal

AAP General News (Australia)
12-15-2006
NSW: Labor worried about debt in the Qantas deal

SYDNEY, Dec 15 AAP - Labor has sought guarantees over the Qantas takeover, particularly
about job security and the airline's national security role.

But federal Opposition Leader Kevin Rudd is also worried about the airline's future
viability, given the debt levels of the consortium which has made a successful takeover
bid.

"It's a very competitive business worldwide, but subject to huge external shocks,"

Mr Rudd told the Seven Network today.

"Take for example things like national security shocks, terrorist attacks, also things
like if there are outbreaks of communicable diseases around the world.

"How does a company cope when those big things happen and (it is) loaded up with debt."

Qantas Airways yesterday accepted an $11.1 billion takeover bid from an international
consortium subject to a national interest test by the Foreign Investment Review Board.

The buyers have pledged not to break up the national carrier.

Qantas chief executive officer Geoff Dixon also said the airline would still be available
to transport Australians from the world's trouble spots.

But ahead of the board's decision, and despite the Qantas pledges, Mr Rudd still wants
some guarantees.

He wants assurances that Qantas will remain based in Australia and about its commitment
to local staffing.

"(There are) 35,000 people employed by Qantas across the country, and at present it
is one of the largest, if not the largest, provider of apprenticeships," Mr Rudd said.

Worries about Qantas maintaining regional services and a national security role also
feature on Labor's list.

Mr Rudd said Qantas has been relied on by past governments to get Australians out of
strife in the world's trouble spots.

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KEYWORD: QANTAS LABOR

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