Virgin tells Qantas to man up and compete over foreign takeover of Australian skies

QANTAS boss Alan Joyce will meet government MPs today over his claims about the foreign takeover of Australian skies.

Virgin Australia CEO, John Borghetti / Picture: Sarah Keayes

QANTAS boss Alan Joyce will meet senior government MPs today over his claims of a foreign takeover of Australian skies, as Virgin accused the rival airline of attempting to stifle competition.

The Canberra meetings come after Qantas launched an online petition yesterday railing against Virgin for raising $350 million in capital from its foreign owners Air New Zealand, Singapore Airlines and Etihad.

QANTAS' CALL TO ARMS OVER FOREIGN TAKEOVER OF AUSSIE SKIES

Qantas wants either foreign investment or aviation rules changed so airlines with large percentages of foreign ownership cannot access the special treatment granted to Australian-flagged carriers.

Almost 7000 people signed the petition in less than eight hours after Mr Joyce urged Qantas's 35,000 employees to lobby MPs.

"The unfair playing field in Australian aviation is a risk to the future of Qantas and all our jobs," the petition claimed.

"It means Virgin, which will be 80 per cent foreign owned, can use its unlimited funds to weaken Qantas in the domestic market and cripple our international business. It means foreign airlines having control of an airline which access Australia's valuable air treating rights."

Treasurer Joe Hockey and Transport Minister Warren Truss declined to comment.

Virgin chief John Borghetti accused Qantas of stifling competition and raising prices, adding he would never ask his workers to fight for him.

"It's my job to do that. I would never ask my staff to do that," he said.

"(Qantas's) recent comments have shown they're not happy to have this level of competition in aviation.

"We've lowered fares by 27 per cent compared to when we first entered the market. We've brought real competition into all sectors."

Mr Borghetti spent 36 years working for Qantas and had been in charge of the airline's domestic and international operations.

But he said his rival's claims his airline was setting uncompetitively low prices to simply win customers off his rival were simply wrong.

Virgin has won Foreign Investment Review Board approval for its foreign ownership stake in the past and does not require approval for its capital-raising venture.