Momentum is gathering in opposition to the proposed Qantas takeover by a private equity consortium led by Macquarie Bank.

The private equity bid is contrary to our national interest because of the high level of foreign interest in the bid.

In the US, despite being the alleged “home of free trade”, there is a very restricted view of foreign ownership when it comes to airlines. US policy on airline ownership requires their airlines are 75% American owned.

The US Department of Transportation recently blocked an application by Virgin America for an operating certificate in the US. The reasoning behind this decision was because of the UK based Virgin Group’s involvement in the creation of Virgin America and, therefore, the UK based Virgin Group’s ability to influence the decisions of Virgin America’s board.

To the Americans, it is not in their national interest for an airline to be more than 25% foreign owned. Why are we different?

There exists a strong argument that Macquarie Bank would have an “ability” to “influence” Qantas beyond what the form of the private equity bid suggests. Macquarie Bank, being leaders of the bid, are more influential over their bid partners than they would be if they were mere participants.

With an interest in the only airport to be able to accommodate interstate and international flights into and out of Sydney, and with an interest in the biggest airline by far in the Sydney (and national) aviation market, Macquarie Bank would have the ability to project influence beyond what its paper “interest” in the Qantas bid suggests.

This would arguably place the owners of Sydney Airport and Qantas in a position to raise prices without losing custom in a key national transport market in contravention of section 50 of the Trade Practices Act.