Australia should ‘take an equity stake’ in foreign owned airline

about 4 years in news

Given Virgin Australia is "90 per cent China owned" and "paid no tax" on $23.4 billion revenue for five years, the Australian government need to "take a share in the company" rather than giving it a bailout says Centre Alliance Senator Rex Patrick.

The airline, which recently stood down 8,000 employees, has lobbied the government for a $1.4 billion rescue package.

Senator Patrick said Australia does need to "protect our aviation industry" and ensure there are "two players in the market," but the answer is not a federal loan, rather the government needs to "take an equity stake" in the airline.

He told Sky News host Peta Credlin given Virgin "has paid no tax over the five years [between 2013/14 and 2017/18] on $23.4 billion worth of revenue" if the government did "hand that company money … most taxpayers would find that offensive".

His idea would see a situation where "we help the company out after the coronavirus," end up with the aviation sector returning to normal, and "the taxpayer could actually make a profit".

Image: AP

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