Australian Government gave Qantas $3.26 billion in 1993

The Australian government gave Qantas the 2020 equivalent of A$3.26 billion in 1993 to recapitalise the airline ahead of its float. The actual amount was A$1.35 billion but in 2020 dollars depending upon the measurement criteria that is up to A$5.63 billion. The range is A$3.26 billion using average weekly wage increase to A$5.63 billion using the economy cost criteria. Qantas was government-owned from 1947 to 1993. Virgin Australia is asking the government for A$1.35 billion support through the COVID-19 crisis but some are saying the government shouldn't bail the airline out. READ: Failure of Virgin Australia could cost Australians $50 billion over 10 years. Here is the press release from 1993; The future of Qantas was put on a firm footing this morning when Finance Minister Ralph Willis handed over $1.35 billion, a large part of which the airline will use to pay the Commonwealth to assume Commonwealth-guaranteed debt in the lead-up to its flotation. Mr Willis said the transaction fulfilled a long-standing commitment by the Government to recapitalise Qantas as part of the airline's sale. He said the recapitalisation amount had been the subject of considerable discussion with the potential trade sale purchasers, including British Airways, during that stage of the sale process. The recapitalisation was also foreshadowed in the Qantas Sale Act, passed in December, which makes provision for the Commonwealth to make a share subscription to Qantas and to take over the airline's obligations to repay debt guaranteed by the Commonwealth. "This capital injection completes another integral component of the Qantas sale process", Mr Willis said. "It will significantly reduce Qantas' operating costs by allowing for lower annual interest payments and thereby enhance the airline's international competitiveness". "Qantas is now in a position to seek an investment-grade credit rating ahead of the proposed float". "The next stage of the sale process will be completed early next month when we expect to settle the sale of 25 per cent of Qantas to British Airways".