Qantas’ chief financial officer Gareth Evans has written an opinion piece for The Age, in which he says the airline won’t be conceding any of its 65 per cent market share to Virgin.
“Imagine someone saying Woolworths should start closing stores in response to the threat from Coles,” he said.
“Anyone who advocates this kind of approach simply does not understand the way business works.
We plan to keep improving and strengthening our competitive advantages.”
Qantas has decided 65 per cent is where it’s drawing the line in the sand, convinced it cannot lose this ground to its arch rival Virgin Australia.
The national carrier relies on its profitable domestic business to help fund its international arm, and has asked the Government for help after Virgin announced a $350 million capital raising.
Alan Joyce has said Virgin — which is mostly owned by overseas airlines — is using the capital raising to place unfair pressure on Qantas.
Basically, he thinks they’re using a huge war chest to continually undercut him on his domestic routes, until he has to give up some dominance.
There’s more here.