Qantas has asked the Australian government to investigate Air New Zealand's buy-in to Virgin Australia.
Photo: RNZ
Air New Zealand is leading the takeover, with Singapore Airlines and Etihad Airways of Abu Dhabi.
The three airlines have more than 60% of Virgin Australia, and could eventually own 70%.
Last week, Virgin said it would raise up to $A350 million through a share buyback. The bulk of that capital raising is underwritten by the three major shareholders.
The ABC reports Qantas has written to the federal and state governments asking that they prevent the capital raising.
Qantas said it is subject to regulatory restrictions that do not apply to Virgin, and that creates an uneven playing field.
"The decision of these shareholders to invest in Virgin Australia's loss-making strategy highlights that these airlines aren't subject to the same commercial realities as Qantas," a statement said.
"We have asked federal and state governments to fully examine the motives behind the virtual takeover of Virgin Australia by foreign airlines, and to prevent destabilising of the domestic aviation industry, local tourism and jobs."
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