· Qantas faces national interest tests

The federal government will seek to repeal part of the Qantas Sale Act that governs foreign ownership laws.

Prime Minister Tony Abbott, Treasurer Joe Hockey and Transport Minister Warren Truss made the announcement at a press conference this evening.

But Prime Minister Tony Abbott says cabinet does not intend to offer a debt guarantee or a line of credit to Qantas.

It is understood the 49% cap on foreign ownership will remain however overseas airlines will be able to invest beyond the current limit of 35%.

Restrictions on the level of overseas maintenance also are expected to be lifted.

“I am confident that our country can sustain a great airline into the future as we have in the past,” Mr Abbott said.

More details are to come shortly.

With The New Daily