Qantas loses effective control over Air Pacific
March 28, 2012 1:25 am
Qantas has lost “effective control” over National Carrier Air Pacific which it enjoyed since 1998.
The new development follows amendments to the Civil Aviation and Control of National Airlines Decree 2012 which came into effect today.
Attorney General Aiyaz Sayed-Khaiyum says under the decree any Fiji registered company providing international service should have substantial ownership and effective control by a Fiji citizen.
“What this primarily means Qantas the second largest shareholder and Fijian government which owns 51 percent shares and even it hold 51 percent shares it did not have effective control which meant their veto powers over 15 areas of operation whether its staff bonus appointment of CEO, flight to new destination it has veto powers”.
Sayed-Khaiyum says since 1998 Qantas which owns close to 47 percent shares in Air Pacific maintained effective control of these airlines through supermajority and veto rights over significant areas of the company.
Qantas are still to comment on the matter.