Qantas may be target for Chinese airlines, Credit Suisse says

Qantas Airways could be China’s next investment target after conglomerates from the country bought stakes in the carrier’s closest domestic rival, Credit Suisse Group said. Separate investments in Virgin Australia by HNA Group and Nanshan Group in the past 2 weeks have put around one third of the airline in Chinese hands. HNA owns Hainan Airlines and Nanshan controls Qingdao Airlines. In an alliance with HNA, Virgin Australia plans to start direct flights to and from China next year. Those acquisitions could prompt a top-tier Chinese airline to pursue a stake in Qantas to gain a stronger hold on routes between Australia and China, Credit Suisse analysts said in a June 13 note. At least 5% of Qantas is available for an overseas investor before the airline’s foreign ownership breaches the 49% cap set by Australian law. <br/>