Qantas set to remain Australian

Qantas will remain a majority Australian-owned company with the government forced to abandon plans for unlimited foreign ownership of the airline, Labor says.

Opposition Leader Bill Shorten on Tuesday welcomed news that the government has adopted a Labor proposal that foreign interests not hold more than a 49 per cent stake in the national carrier.

The coalition moved legislation to open investment after complaints from the airline about the unfair Qantas Sale Act which limits at 35 per cent a combined holding by foreign airlines and 25 per cent by any single foreign investor.

The Labor proposal removes the lower caps, thus allowing greater but not majority foreign investment.

"Qantas should remain majority Australian-owned and I'm pleased the Abbott government has given in and accepted Labor's proposal," Mr Shorten said.

The government was forced to compromise on its plan after failing to find upper house support for the legislation, Fairfax reports.

Senior Labor MP Tony Burke told ABC TV he is yet to be formally notified of the government's shift on the Qantas ownership.