{"id":"C2004A03677","name":"Qantas Airways Limited (Loan Guarantee) Act 1988","slug":"qantas-airways-limited-loan-guarantee-act-1988","collection":"act","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":"84 of 1988","makingDate":null,"administeringDepartment":null,"currentVersion":{"id":7708,"registerId":"commonwealth-C2004A03677-current","compilationNumber":null,"startDate":"2026-03-30","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"1","sectionType":"section","heading":"Qantas Airways Limited (Loan Guarantee) Act 1988","content":"---\nmeta-content-style-type: text/css\nmeta-content-type: application/xhtml+xml; charset=utf-8\n---\n\n?xml version=\"1.0\" encoding=\"utf-8\" standalone=\"no\"?>\n\n![](image.001.png)\n\n \n\n \n\n \n\n \n\n \n\n \n\nQantas Airways Limited (Loan Guarantee) Act 1988\n\n \n\nNo. 84 of 1988\n\n \n\n \n\n \n\n \n\n \n\nAn Act relating to the provision of certain equipment for Qantas Airways Limited\n\n \n\n \n\n \n\nContents\n\n[1 Short title](#_Toc425775211)\n\n[2 Commencement](#_Toc425775212)\n\n[3 Interpretation](#_Toc425775213)\n\n[4 Guarantee of certain loans](#_Toc425775214)\n\n[5 Conditions of guarantees](#_Toc425775215)\n\n[6 Delegation](#_Toc425775216)\n\n \n\n![](image.001.png)\n\n \n\n \n\nQantas Airways Limited (Loan Guarantee) Act 1988\n\nNo. 84 of 1988\n\n \n\n \n\n \n\nAn Act relating to the provision of certain equipment for Qantas Airways Limited\n\n[Assented to 31 October 1988]\n\nThe Parliament of Australia enacts:\n\n##### 1  Short title\n\n  This Act may be cited as the Qantas Airways Limited (Loan Guarantee) Act 1988.\n\n##### 2  Commencement\n\n  This Act commences on the day on which it receives the Royal Assent.\n\n##### 3  Interpretation\n\n (1) In this Act:\n\nborrow includes borrow, or otherwise raise money, by dealing in securities.\n\n (2) For the purposes of this Act, the obtaining of credit shall be taken to be a borrowing of an amount equal to the value of the credit obtained.\n\n##### 4  Guarantee of certain loans\n\n (1) The Treasurer may, on behalf of the Commonwealth, and subject to the conditions required by this Act, guarantee:\n\n (a) the payment by Qantas Airways Limited of amounts that Qantas Airways Limited is liable to pay with respect to so much of the money borrowed by it as does not exceed the total expenditure that, to the satisfaction of the Treasurer:\n\n (i) will be, or has been, incurred by Qantas Airways Limited in connection with the purchase by it of 3 Boeing 767-300 Extended Range aircraft and related spare parts and equipment; and\n\n (ii) will be, or has been, met out of money owned or borrowed by it; and\n\n (b) the payment of interest (including any interest on that interest) on money so borrowed.\n\n (2) A guarantee or guarantees shall not be given under subsection (1) in respect of money borrowed in the currency of the United States of America, or in any other currency, exceeding in the aggregate $235,000,000 in the currency of the United States of America.\n\n (3) The power of the Treasurer to give a guarantee under this section includes:\n\n (a) a power to agree, on behalf of the Commonwealth, that proceedings under the guarantee may be taken in a court of a country other than Australia; and\n\n (b) a power to waive, on behalf of the Commonwealth, the immunity of the Commonwealth from suit in a court of a country other than Australia in relation to any proceedings that may be taken under the guarantee in such a court.\n\n (4) For the purposes of subsection (2), the amount of a borrowing in a currency other than the currency of the United States of America shall be taken to be the amount in the currency of the United States of America that was equivalent to the first-mentioned amount at the date of the borrowing, as ascertained by the Reserve Bank of Australia.\n\n##### 5  Conditions of guarantees\n\n  For the purpose of the protection of the financial interests of the Commonwealth, the Treasurer shall not give a guarantee under section 4 unless:\n\n (a) the money is borrowed on terms and conditions that the Treasurer is satisfied are reasonable;\n\n (b) appropriate security to the satisfaction of the Treasurer is, or is to be, given to the Commonwealth over property of Qantas Airways Limited, being property 85% of the value of the interest of Qantas Airways Limited in which, immediately before the giving of security to the Commonwealth, equals or exceeds the amounts borrowed;\n\n (c) undertakings to the satisfaction of the Treasurer are given that the property of Qantas Airways Limited over which security is, or is to be, taken in accordance with paragraph (b):\n\n (i) will be insured and kept insured against all risks against which it is customary to insure and to the full insurable value of that property; and\n\n (ii) will not be sold or made the subject of a mortgage or charge having priority over the security to the Commonwealth in respect of the guarantee; and\n\n (d) such other conditions as the Treasurer thinks necessary are fulfilled.\n\n##### 6  Delegation\n\n (1) The Treasurer may, by signed instrument, delegate to an officer of the Department of the Treasury all or any of the powers or functions of the Treasurer under this Act.\n\n (2) A delegate is, in the exercise or performance of a power or function so delegated, subject to the directions of the Treasurer.\n\n \n\n \n\n \n\n \n","sortOrder":0}],"analysis":{"flash_summary":{"complexity_score":3,"scope_assessment":{"changed":false,"description":"The Act is narrowly tailored to one purpose: to allow the Commonwealth, through the Treasurer, to guarantee borrowings by Qantas for the purchase of three Boeing 767‑300ER aircraft and related spare parts and equipment. The text does not expand that scope beyond the stated transaction or beneficiary; it sets a fixed dollar cap (US$235,000,000) and specific protective conditions (security, insurance, no prior charges). There is no indication in the Act’s text that its scope has been expanded beyond that original, transaction‑specific intent."},"complexity_factors":["6 substantive sections (short, focused Act)","2 defined/conceptual terms in interpretation (\"borrow\" and credit-as-borrowing rule) (s3)","Single monetary cap (US$235,000,000) with cross‑currency conversion by the Reserve Bank (s4(2), s4(4))","Substantive conditionality: requirements for \"reasonable\" terms, 85% security valuation threshold, insurance and prohibition on prior charges (s5(b)–(c))","Power to permit foreign jurisdiction and waive Commonwealth immunity for proceedings (s4(3))","Delegation power to Treasury officers with Treasurer's directions (s6)","Limited cross‑references and few exceptions; minimal nested conditional logic"],"plain_english_summary":"This Act authorises the Treasurer to give the Commonwealth guarantee, capped at US$235 million, to back Qantas Airways’ borrowing to buy three Boeing 767‑300ERs and related spare parts and equipment. Before guaranteeing, the Treasurer must be satisfied terms are reasonable and obtain secured collateral (measured to cover 85% of Qantas’s interest) plus insurance; enforcement in foreign courts can be permitted. It’s a narrow, transaction‑specific support that lowers Qantas’s borrowing costs while creating a contingent fiscal liability for taxpayers."},"flash_summary_failed":{"failed":true,"reason":"A positive credit balance is required for all requests, including BYOK, so fallback providers remain available. Add credits at https://vercel.com/d?to=%2F%5Bteam%5D%2F%7E%2Fai%3Fmodal%3Dtop-up to continue.","source":"analysis-cron"},"kimi_summary":{"content_quality":"ok","complexity_score":2,"scope_assessment":{"changed":false,"description":"This is a single-purpose statute that has not expanded beyond its original intent. It was enacted specifically to facilitate Qantas's purchase of three Boeing 767-300ER aircraft in 1988, and the text remains tightly constrained to that purpose with the US$235 million cap and specific equipment references."},"complexity_factors":["Very short statute: only 6 sections covering 2 pages","Minimal defined terms: only 2 definitions in section 3 ('borrow' and treatment of credit as borrowing)","Simple conditional structure: single purpose legislation with clear monetary cap (US$235 million)","No cross-references to other Acts","Straightforward delegation power in section 6","Standard security and insurance conditions in section 5 without nested exceptions"],"plain_english_summary":"**What this law does:**\n\nThis Act allows the Australian Government (specifically the Treasurer) to guarantee loans taken out by Qantas Airways Limited in 1988. Think of a \"guarantee\" as the government promising to pay Qantas's debts if Qantas can't.\n\n**Why it exists:**\n\nQantas wanted to buy three Boeing 767-300 Extended Range aircraft plus spare parts and equipment. These planes were expensive, and Qantas needed to borrow money to pay for them. This law lets the government back those loans to help Qantas get better borrowing terms (lower interest rates) from lenders.\n\n**Key limits and protections:**\n\n- **Cap:** The government won't guarantee more than US$235 million in total\n- **Purpose:** The money must be used specifically for those three Boeing planes and related equipment\n- **Security:** Qantas must put up property as collateral (security) worth at least 85% of the loan amount\n- **Insurance:** The planes must be fully insured\n- **Reasonable terms:** The Treasurer must be satisfied the loan terms are fair\n\n**Who it affects:**\n\n- **Qantas:** Gets government backing for its aircraft purchase loans\n- **The Commonwealth (taxpayers):** Takes on risk if Qantas defaults, but gets security over Qantas assets\n- **Lenders:** Get extra confidence lending to Qantas because the government guarantees repayment\n\n**Special powers:**\n\nThe Treasurer can also agree that if there's a dispute, it can be heard in overseas courts (not just Australian ones), and can waive the government's usual immunity from being sued in foreign courts."}},"importantCases":[],"_links":{"self":"/api/acts/qantas-airways-limited-loan-guarantee-act-1988","history":"/api/acts/qantas-airways-limited-loan-guarantee-act-1988/history","analysis":"/api/acts/qantas-airways-limited-loan-guarantee-act-1988/analysis","conflicts":"/api/acts/qantas-airways-limited-loan-guarantee-act-1988/conflicts","importantCases":"/api/acts/qantas-airways-limited-loan-guarantee-act-1988/important-cases","documents":"/api/acts/qantas-airways-limited-loan-guarantee-act-1988/documents"}}