Qantas taps ex Rio Tinto executive as new chairman

SYDNEY, Aug 9 (Reuters) Australia's Qantas Airways Ltd. said on Thursday it had appointed Leigh Clifford, a former chief executive of mining giant Rio Tinto Ltd. , as its new chairman.

Clifford will replace Margaret Jackson, who will step down in November after heavy criticism of the way management handled a failed billion takeover bid for the airline by a group including Macquarie Bank Ltd and private equity firm TPG [TPG.UL] in May.

Clifford retired from Rio Tinto in April this year following 37 years with the company. Qantas said the decision was influenced by his experience with acquisitions and the consolidation of Rio's position in Asia.

Qantas has ambitions to grow its presence in Asia through its low-cost subsidiary Jetstar.

Jackson, who spearheaded management support for the world's biggest airline takeover, announced in May she would leave the airline. Fellow board member and Australia's richest man, James Packer, also resigned.

The failure of the deal was seen as making Jackson's position untenable.

She had been quoted in the local media saying shareholders had a ''mental problem with the market'' if they did not believe Qantas shares would fall if the bid collapsed.

Qantas shares rose when the A.45-per-share offer failed. Qantas stock was down 0.5 percent at A.62 at 0627 GMT.

Local media reports have said other candidates for the job included board member and former Qantas chief James Strong but he said he was not interested.

Australia's biggest airline has been considering options for a major restructure, an idea inherited from the private equity consortium.

It is reviewing the ownership of key assets, including its frequent flyer programme and freight business, but has said it does not plan to sell off any units.

REUTERS KR KN1811