Qatar has been given access to Melbourne. Transport Minister Mark Vaile said under the new air services arrangement with Qatar, Qatar Airways will also have the right to operate a second daily flight to another Australian city from 2008 as Australia increases access rights for Middle East airlines.

Qatar Airways rival Emirates, the largest Arab airline, is expanding routes to Australia and Abu Dhabi-based Etihad Airways will also launch services to Australia later this month. "Around 20 airlines currently already fly these routes over a range of hubs, and with yet more capacity coming into the market, Qantas will have no option but to achieve further cost savings if it is to remain competitive," Qantas Chief Executive Geoff Dixon said in a statement.

All this information is missing the key data point. The Gulf carriers will be flying their A380s into Australia as fast as they can get them. Qantas simply cannot respond. Moreover, with Qantas likely to be privately owned, the Australian state feels less compelled to protect the airline. Which it has done for years.

The Kangaroo Route between Australia and London is very attractive to the Gulf carriers and Emirates has even mused about an LCC version of the A380 being able to offer $400 fares between Sydney and London. This is going to be a huge cat fight. We expect Qantas to play its xenophobia card and wrap itself in the Australian flag. Problem is that Australians are as savvy consumers as anywhere else. They will most likely go with the best deal. The one item nobody dare dismiss is this – Qantas has a spotless safety record; and flights to and from Australia are very long hauls. If any Gulf airline so much as scratches a plane, Aussies will flock back to Qantas.

Qatar has been given access to Melbourne. Transport Minister Mark Vaile said under the new air services arrangement with Qatar, Qatar Airways will also have the right to operate a second daily flight to another Australian city from 2008 as Australia increases access rights for Middle East airlines.

Qatar Airways rival Emirates, the largest Arab airline, is expanding routes to Australia and Abu Dhabi-based Etihad Airways will also launch services to Australia later this month. "Around 20 airlines currently already fly these routes over a range of hubs, and with yet more capacity coming into the market, Qantas will have no option but to achieve further cost savings if it is to remain competitive," Qantas Chief Executive Geoff Dixon said in a statement.

All this information is missing the key data point. The Gulf carriers will be flying their A380s into Australia as fast as they can get them. Qantas simply cannot respond. Moreover, with Qantas likely to be privately owned, the Australian state feels less compelled to protect the airline. Which it has done for years.

The Kangaroo Route between Australia and London is very attractive to the Gulf carriers and Emirates has even mused about an LCC version of the A380 being able to offer $400 fares between Sydney and London. This is going to be a huge cat fight. We expect Qantas to play its xenophobia card and wrap itself in the Australian flag. Problem is that Australians are as savvy consumers as anywhere else. They will most likely go with the best deal. The one item nobody dare dismiss is this – Qantas has a spotless safety record; and flights to and from Australia are very long hauls. If any Gulf airline so much as scratches a plane, Aussies will flock back to Qantas.