Virgin Australia's new American private equity owners will use a shell company loophole to evade foreign ownership laws in the aviation sector, in a move tipped to spark objections from bitter airline rival Qantas.have confirmed that Virgin's new owner Bain Capital has revived a shell company, Virgin Australia International Holdings , to sidestep federal laws preventing foreign investors from owning more than 49 per cent of a local carrier operating international flights.
The VAIH shell company also went voluntary administration but was revived shortly after US-headquartered Bain took control of Virgin in November following a fierce bidding war for the group. "The [VAIH] company remains majority owned by Australian shareholders," a Virgin spokesman said. "The structure ensures ongoing compliance with the foreign ownership restrictions under the Air Navigation Act."
It could also prompt other countries to reconsider whether to extend flying rights to Virgin as an Australian carrier."I think they would have enough reason as a Japanese operator to say: no, that is not an Australian owned and controlled airline," Mr Hansford said.
pwhatch Must be blocked by the Fed Govt and ACCC ScottMorrisonMP JoshFrydenberg acccgovau