Qantas getting picked at from all sides
By IAG | March 22nd, 2007 | Posted in Delta Air Lines, emirates, qantas, virgin blue | No Comments
This picture must strike some discomfort into Qantas. Besides the irritation of Virgin Blue entering its cozy market to the US, bringing new pressure into a pretty lazy market.
Australia and the United Arab Emirates struck a new air deal yesterday, lifting the cap on flights between the two nations. By 2011 Emirates can double its service and it will have A380s and you can bet they will be flying them between Australia and London. On top of this news, Etihad will also be allowed to operate an extra 21 flights a week to Australia in the next five years. What plane do you think Etihad will use on the route to London? How many A380s can the Kangaroo route use?
Qantas cannot compete against everyone at once and win every battle. The Gulf carriers are going to make revenues on the Kangaroo route thin out a lot. Qantas' other big market is the US, which is also going to get squeezed. A really irritating factor would be if Delta decides to put its 777LRs in the Australia market as well. The fracturing of the market does not favor Qantas. The news that Qantas expects to make A$1.2+B next year is of interest. What do you think Qantas' profits will look like in 2011?
