Fiji govt considers Qantas intent

October 22, 2009 07:09:58 AM

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The Fiji government has indicated it is considering the intention by Australian flag carrier Qantas Airways Ltd to sell off its 46 percent stakes in Fiji’s national carrier Air Pacific. 

Attorney General and Minister for Industry and Trade Aiyaz Sayed-Khaiyum told Fiji Live that talks were however still in the early stages and that any definitive position on what the Fiji government would decide to do, in its capacity as major shareholder in Air Pacific, would be premature. 

“There is a shareholders agreement in which should any shareholder want to sell their shares, there are pre-emptive rights that existing shareholders have,” Sayed-Khaiyum said. 

“At the moment, Qantas has expressed its interest to sell its shares and that’s where the matter is at. Talks are still going on.”

In days leading up to Qantas’ 2009 annual general meeting in Perth last month, the Australian press reported the national airline’s intention to sell its shares in Air Pacific, as it decided to put more focus on its low cost subsidiary Jetstar, which is expected to begin flights to Fiji in April next year. 

The Australian quoted Qantas spokesman David Epstein as saying that the continuation of the shareholding in Air Pacific was formally under review, although talks with the Fiji government were at very early stages. 

Epstein had told The Australian that talks with the Fiji government “had mapped out a possible way forward but there would need to be agreement on valuation procedures before there was a commercial conversation”.

Qantas is planning to compete with Virgin Blue through Jetstar on the Sydney and Nadi route, but it would also continue to codeshare with Air Pacific, reported The Australian.

Air Pacific shareholders include the Fiji Government (51 percent), Qantas (46.32 percent), with minor stakes held by Air New Zealand (1.94 percent) and the governments of Kiribati (0.27 percent), Tonga (0.27 percent), Nauru (0.08 percent) and Samoa (0.12 percent).