The likely new owners of Qantas say the airline will remain Australian-owned in every way.

Airline Partners Australia has won the blessing of the Qantas board for its $11.1 billion offer after raising the bid from $5.50 per share to $5.60.

The consortium has pledged not to break up the airline or move its maintenance work overseas.

Airline Partners Australia director Bob Mansfield says the consortium is made up of local and global companies but the airline's overall ownership will stay Australian.

"Airline Partners Australia acknowledges the significant responsibility of owning Australia's national flag carrier and we don't take that responsibility lightly," he said.

"We are majority Australian-owned. Two thirds of our board will be Australian citizens.

"Qantas will remain majority Australian-owned in every sense by way of voting rights and economic interest."

Mr Mansfield says the consortium does not intend to break up the airline.

"The Qantas management growth strategy that we support does not involve a break-up of the airline, does not involve cuts to regional services and it does not involve moving maintenance operations offshore," he said.

'Important asset'

Prime Minister John Howard says he hopes Qantas remains the same after the takeover, but it is an issue for the market.

"I hope that the Qantas we know is the Qantas we keep," he said.

"People like Qantas, it is an icon, [but] that doesn't mean its shares can't change hands.

"It doesn't mean to say you can't have new investments in Qantas."

Federal Opposition Leader Kevin Rudd says Qantas is an important asset for Australia.

"It is critical for regional Australia; it is critical in terms of Australia's overall tourism industry," he said.

"Qantas is also important from the perspective of national security - when we end up in problems around the world and around the region we often look to Qantas to assist getting our nationals out.

"These are all important considerations therefore in assessing any change in the ownership structure of Qantas."

Offer 'compelling'

Qantas chairman Margaret Jackson has acknowledged some people may feel uneasy about the planned takeover of the airline.

But she says the share offer is compelling.

The non-executive directors of Qantas will recommend the bid to shareholders in documents to be sent out early in the new year.

Ms Jackson says the consortium members, including Texas Pacific Group, are experienced airline investors.

"I know that some people will feel uneasy about this transaction," she said.

"Qantas is an institution that the public love and trust.

"But I am comforted by those whom the board has recommend take over this business."

The consortium has asked Qantas chief executive officer Geoff Dixon to continue in the position.

Source ABC News 14December2006