The dramatic takeover attempt for iconic Australian airline Qantas collapsed today after the private equity firm bidding for the group admitted defeat.

Australian national carrier Qantas Airways said today it had accepted a €6.7bn takeover offer from a private equity consortium including the country’s Macquarie Bank and the Texas Pacific Group.

Qantas Airways Ltd chairman Margaret Jackson said she believes a decision to keep in place the 49% foreign investment limit imposed on the airline runs counter to Australia's national interests.