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Australia seeks to relax Qantas Sale Act to allow foreign ownership

Published on Mar 3, 2014 8:18 PM

SYDNEY (AFP) - Australia's government will try to repeal legislation which restricts foreign ownership in the struggling national carrier Qantas, Prime Minister Tony Abbott said on Monday.

Mr Abbott said cabinet had decided against a debt guarantee for the airline, which last week posted a Aus$235 million (S$266 million) loss in the six months to December 31 and announced it would axe 5,000 jobs.

Mr Abbott said cabinet's decision, reached after two hours of discussions, was "best for our nation and ultimately best for Qantas".

"Cabinet is not proposing... to offer Qantas a debt guarantee or a line of credit," he said. "But we will seek to repeal part 3 of the Qantas Sale Act."

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