Australia's Qantas sees threat from planned law changes

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SYDNEY | Sun Feb 5, 2012 7:47pm EST

SYDNEY Feb 6 (Reuters) - Australia's Qantas Airways said proposed legislative changes aimed at ensuring the airline kept key roles in Australia were a threat to its future and if passed would force it to cut services and jobs.

The proposed changes would reduce Qantas' competitiveness, and push it to withdraw services connecting Darwin and Cairns to the global tourism and trade markets, Qantas chief executive Alan Joyce told lawmakers at a government inquiry on Monday.

"The legislation proposed would constitute a major threat to our business, to Australian jobs in the cities and regions, to investment and to growth," he said.

Joyce was responding to independent Senator Nick Xenophon's proposal that requires Qantas to maintain its principal operation centre in Australia as well as the majority of its heavy maintenance of aircraft, flight operations and training.

The government has been cool on Xenophon's plans, and Australia's parliament is unlikely to pass the laws.

The proposed legislative changes are the latest challenge for Joyce, who battled unions for over a year before settling with them late last year. (Reporting by Narayanan Somasundaram; Editing by Richard Pullin)

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