And why not? From the SMH:
Australia’s largest regional airline has launched a scathing attack on Qantas’s attempts to have the Abbott government guarantee its debt.
Regional Express deputy chairman John Sharp attacked Qantas’s lack of efficiency compared with his own company’s, which ranked first in on time departures and had the lowest cancellation rate in the first half of the 2014 financial year.
While Qantas domestic operations ranked second behind Regional Express (Rex) in both categories, QantasLink, it’s regional operator, lagged behind.
…”Well, if the Australian government backs Qantas, Qantas will then be a government-backed airline, and so Rex will be confronted with two government-backed airline operations that we will be competing with, and that I think is unfair, that I think is a significant distortion of the marketplace,” Mr Sharp said.
…”We all agree with a level playing field, but if you don’t guarantee the other airlines, and only guarantee Qantas, you will be creating an unlevel playing field, and we’ll be on the unlevel part of it. Give us the same guarantees, and other operators the same guarantees that you give to Qantas,” Mr Sharp said.
Fair point.
Let me tell you how to fix this so REX doesn’t want a bailout. Provide the guarantee to QANTAS but in return take a discounted equity stake (to be re-floated in two years) and sack the management and board. Just as should have been done with our banks and everyone else seeking assistance. Just as the private sector would do.
Fixed!
