QF Virgin dispute affects overseas travel
“It’s the second or third-largest market for these carriers outside their home market.” “Australia is an important travel market in its own right,” CIMB analyst Mark Williams said. Virgin Group founder Richard Branson has expressed his distaste for Qantas’ behaviour in the airline’s battle to undermine Virgin Australia’s operations. The ongoing rivalry between Virgin Australia and Qantas Airways has the potential to impact international airlines regional competition, beckoning further involvement by partner carriers. Australia’s high-yielding business travel market – estimated by analysts to be worth as much as AU$3.8 billion – has the capability to affect regional travel in regions such as the Gulf and Asia, Reuters reported. Virgin Australia’s major shareholders, Air New Zealand, Etihad and Singapore Airlines and Qantas’ alliance partner Emirates stand to be greatly transposed by the outcome of the current conflict. Last week, Qantas chief executive Alan Joyce accused Virgin Australia of undercutting Qantas, in reference to the AU$300 million capital investment injection from overseas shareholders. “The strategy by Qantas to exert its power over its smaller rival by releasing false information and attempting to discredit Virgin Australia is no different.” “Over the past week I have watched the behaviour of Qantas, and likened it to the tactics that were thrown at us by British Airways in the 1990’s with their dirty tricks campaign,” Mr Branson said. Source = ETB News: P.T.