Talks aimed at lifting Qantas foreign ownership CAP

The Australian government is talking to Qantas Airways about easing foreign ownership restrictions on the national flag carrier.

Transport minister John Anderson said at this stage the talks could only be described as ‘‘entry level’’.

‘‘I’ve broadly confirmed that they have raised the issue with me, and I’ll be talking to my colleagues about that,’’ he told reporters.

In February, Qantas chief executive Geoff Dixon said the airline had been pressing the government to lift the cap which is set at 49% for total foreign equity and 25% for any single overseas airline.

British Airways, which holds nearly 22%, has in the past signalled it would like to raise its stake above 25%.

Any change to the ownership laws would require support from the opposition Labour Party or the Australian Democrats in the Senate, where the government lacks a majority.

Labour said in February it is open to altering the ownership laws on Qantas given recent upheavals in the aviation industry.

Since the demise of its major local competitor, Ansett, earlier this year, Qantas now controls about 85% of the domestic market.