Qantas takeover hits turbulence

Qantas could be worth $10 billionTreasurer Peter Costello has vowed to never let Qantas fall into foreign hands.

Macquarie Bank and US private equity firm Texas Pacific Group have approached Qantas about a potential $10bn takeover bid which, if successful, could lead to some parts of the airline being sold off.

But Mr Costello said the Federal Government stood by its policy of banning majority foreign ownership of the airline.

"Can I say in relation to Qantas, the Government policy is that the majority ownership of Qantas should be Australian," Mr Costello said in Brisbane.

"That is the Act, that's what the law says, and I don't believe there are any grounds to amend the law to reduce the requirement for Australian ownership."

Mr Costello's promise came after intense pressure from government backbenchers, Labor, unions and the minor parties.