Qantas in "deep shit", says Branson

Qantas in "deep shit", says Branson
By admin


Virgin Australia founder Richard Branson has bristled at reports that Qantas will this week lobby the federal government to help “level the playing field” with its rival in the domestic aviation market.

Qantas chief executive Alan Joyce will enter into talks with treasurer Joe Hockey and transport minister Warren Truss tomorrow. Joyce is likely to reiterate his belief that Virgin’s levels of foreign investment gives the carrier an unfair advantage in the domestic market, contributing to Qantas' forecasted $300 million underlying loss for the six months to December 2013.

But Branson insisted that it would be unfair for the government to assist Qantas financially.

“Every company in Australia will come begging to the government if the government allows that to happen,” he told journalists in Dubai as reported in the Sydney Morning Herald.

He attributed Qantas’ current financial woes to its determination to maintain a 65% share of the domestic aviation market.

“Alan Joyce is in deep shit because he drew a line in the sand,” he said.

However, Qantas implied his comments were an attempt to draw attention away from Virgin's revelation last week that it is on track to post a loss of $49 million for the half year.

“Virgin Australia often roll out Mr Branson to distract from their bad news," a spokesperson said. 

“Suggesting that Qantas should change its strategy so that Virgin can simply take our customers to reduce their financial losses is ridiculous.

“As we’ve said many times, Qantas is not asking the government for money. This is in contrast to Virgin, which has been cap in hand to the three foreign government owned airlines to fund its loss making strategy.

“What we’re asking the government for is a level playing field in the domestic aviation market, because as the Prime Minister and Treasurer have acknowledged there is currently one set of rules for Qantas and another for its competitors.”

Latest News

  • Destinations
  • News

APT Launches 2025 Asia Adventures

APT has launched its Asia Adventures for 2025, including new luxury holidays in India, Sri Lanka and Japan. Five new tours lead guests to the highlights of India, including a seven-night cruise along the rarely travelled Lower Ganges aboard the Ganges Voyager. Further south, Sri Lanka’s greatest destinations are revealed on a new 15-day Land […]

  • Cruise
  • Luxury
  • News

Seabourn announces Western Kimberley Traditional Owners as Godparents of Seabourn Pursuit

Seabourn has named Western Kimberley Traditional Owners, the Wunambal Gaambera, as Godparents of the ultra-luxury purpose-built Seabourn Pursuit. It is the first cruise line to appoint Traditional Owners as godparents of a ship. Seabourn Pursuit embarks on its inaugural season in the Kimberley region this June. The naming ceremony will take place on Seabourn Pursuit’s […]

  • Luxury

Malolo Island Resort opens brand new Spa

Fiji’s Malolo Island has added another string to its bow – opening its $1.3 million day spa on Thursday, 18th April 2024. (Lead Image: matriarch Rosie Whitton with spa staff) Located at the edge of the resort’s luscious patch of tropical rainforest, the new “Leilani’s Spa” adds another level of elevated experiences to Malolo’s already […]