Fiji's interim Government says it is disappointed by Qantas's decision to remove its four directors from the board of Air Pacific.
Qantas, which holds a 46 percent share in Air Pacific, yesterday announced the immediate removal of the directors, saying the Fiji government is intervening in the management of the airline.
Leilani Momoisea reports,
"Qantas says the removal of its directors is in response to a recent government decree that required two-thirds of the board to be Fijian citizens. Qantas says despite it having no veto rights over any aspect of Air Pacific's management, the government has made it clear it intends to take absolute control of the airline through the decree. However, the Fiji regime denies it has any intention of taking control of the airline. It says Fiji laws regarding the ownership and control of its national carrier are now the same or similar to those that exist in other countries. Qantas retains its rights as a shareholder and will continue to consider options for the potential sale of its stake."