Foreign stake cap to stay on Qantas

THE Australian government shot down a plea by flag-carrier Qantas - 17% held by British Airways - to ease foreign ownership limits.

Geoff Dixon, Qantas chief executive, said in a speech on Wednesday night that the 49% cap on foreign shareholdings should be ditched so that the company could more easily attract equity capital.

'We recognise Qantas' importance to Australia - and Australians - and share the strong sense of pride in the airline as a living national icon,' Dixon said at an industry dinner. 'But we also know that pride alone will not guarantee the airline's future.'

But on Thursday Transport Minister John Anderson said no change was contemplated.

'It's not long ago that we considered it and the government came to the view that it was not a desirable change,' Anderson told reporters. 'I don't see that being reopened at this point in time.'

Dixon also took a swipe at competition regulators, saying they should not be the principal arbiters of industrial policy.

The Australian Competition and Consumer Commission (ACCC) this month said it would oppose a plan by Qantas to buy 22.5% of Air New Zealand.