Qantas Virgin Tiff Impacts International Travel

1st Dec 2013

Never the twain shall meet. Do Qantas and Virgin will ever co-exist in an industry where competition is so intense both airlines are accusing each other of exercising unfair trade practices?

The rivalry between the two carriers is not unknown to the industry, not only in Australia but all over Asia and the Gulf region. Both airlines have their own partners, all of which are major players in the industry.

Qantas Airways has Emirates, the Gulf region's largest carrier, as its partner while Virgin Australia has three big names in the world's aviation industry, namely, Air New Zealand, Etihad and Singapore Airlines, as its partners.

According to reports, the disturbance in Australia's largely lucrative business travel market is likely to affect travel market in the Gulf and Asian regions, due in large part to the partnerships Qantas and Virgin have with these airlines.

One analyst confirmed that Australia's travel market is one of the largest and most important across the region. Next to their home market, the land Down Under is either second or third largest market for their partner airlines.

Richard Bronson, in particular, expressed his displeasure over Qantas deplorable conduct in its effort to undercut his airline's operations.

He added that he has been observing Qantas actions ever since and in the past few weeks alone, he noticed the airline's lamentable tactics and dirty tricks to thwart competition from Virgin. He likened it to the same tactics thrown at them by British Airways in the 1990s.

While Virgin rued on Qantas' way of exerting its power over its competitors, Alan Joyce, Qantas' CEO, deplored over Virgin's own way of undercutting competition, in reference to capital investment infused by overseas stakeholders to Virgin amounting to AU$300 million.