When Qantas was privatised in 1993, one point of the debate was a liability of $1.4bn that the federal government eventually agreed to guarantee to ensure the company had an investment grade rating.
Ironically enough, that is exactly the size of the line of credit Virgin is seeking from the government.
The timing is a little different and back when Qantas was sold it was normal for the federal government as the vendor to retain some debt to help the sale.
But it’s a point of reference.
Prime Minister Scott Morrison has indicated the government will not step in to support Virgin, fearing it will open the gate to a flood of similar requests.
Others in Canberra including Treasurer Josh Frydenberg are said to be still backing Virgin, or more to the point, the importance of two domestic carriers, and Deputy Prime Minister Michael McCormack is sitting on the fence.
McCormack is based in Wagga Wagga, where Ansett offshoot REX is based, and his chief of staff Damian Callachor spent some time with Qantas.
Back when Qantas first floated, its operations featured in national debate for among other reasons the fact that any aircraft imported costing around $100m would have an impact on the balance of payments.
The battle goes on.
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