In a sudden move, Fiji's military government changed airline ownership rules yesterday, in a bid to reduce Qantas' power over the country's national airline.
Currently holding up to 46 percent stake in the carrier, Qantas has denied Air Pacifics claims that it has power over key business operations and decision making, Today on Line reported.
A Qantas spokesperson told media is completely incorrect to suggest that Qantas has control over Air Pacifics operational business.
According to the Fijian Government, it has reassessed its foreign-ownership laws because Qantas has maintained effecting control via super majority and veto rights.
The Fijian Government highlighted that Qantas has the power on the appointment of the chairman, deputy chairman, operating budget, management appointments and other decisions making rights.
Under the new rules implemented by the military government at least two thirds of Air Pacifics board members are Fijian and that the airline is under actual and effective control of Fijian citizens
The Fijian Government has a 51 percent share in Air Pacific and currently four of Air Pacifics nine directors are Qantas appointees.
Qantas will look into the implications of the new ownership rules and determine what impact this had on our minority shareholding in the airline, a Qantas spokesperson said.
Source = e-Travel Blackboard: S.P