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Qantas faces turbulence from Fiji military
Fri, June 20 2008

Qantas-owns--Fiji's-Air-PacificQantas chief Geoff Dixon probably figures he’s got enough on his plate, what with record oil prices and rebellious engineers. But another fight is shaping up in the South Pacific.

Fiji’s military government is reviewing the operation of Air Pacific amid suggestions that the national carrier is unfairly dominated by Qantas, which is a minority shareholder.

Fiji’s interim Attorney-General, Aiyaz Sayed-Khaiyum, said a taskforce is investigating Air Pacific.

"Despite owning 51 per cent of Air Pacific, the Government of Fiji is unable to exercise powers that it normally could as a majority shareholder," Sayed-Khaiyum said. "For example, under the articles of association, Qantas – which owns 46 per cent of Air Pacific – has veto powers in a number of key operational areas."

In recent weeks the Government has blamed Qantas for Air Pacific’s sluggish financial performance. The airline’s management also angered Fiji’s rulers recently by refusing to carry Australian newspaper publisher, Evan Hannah, on a flight out of the country.

Hannah was deported from Fiji after running a series of articles critical of the interim government.