Joe Hockey says Qantas is special case and could be bailed out

IT’S looking more and more likely Qantas will be bailed out by the government with Treasurer Joe Hockey saying the airline is a special case.

THE Government is set to aid cash-strapped Qantas as a special case despite its “instinct” not to help private enterprises.

Treasurer Joe Hockey today indicated the national flag carrier was a special case, adding to speculation it would be given a government guarantee on loans.

“Instinctively and quite obviously we are not in the business of giving money to private enterprise,” Mr Hockey told reporters in Canberra today.

However, he said there were four factors making the airline a special case.

One was that legislation restricting foreign ownership to 49 per cent was crippling its ability to raise money on the markets.

Mr Hockey said Qantas also qualified for assistance because its operations were fundamental to the economy, overseas governments were assisting its competitors and the airline was moving to fix up its own balance sheet.

Qantas chief executive Alan Joyce today had talks with the Treasurer after lobbying MPs yesterday.

However, Mr Hockey again indicated any help could be limited.

“If you think we are being dragged kicking and screaming on this, you are right,” he said.

Opposition Leader Bill Shorten invited the Government to consult on the airline’s future.

“If the Government’s got a plan about Qantas, talk to us,” Mr Shorten told reporters in Canberra.

“We want to save Qantas. Labor has always been pro-Qantas and its employees. It is a highly skilled workforce and we will keep supporting them.”

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