Virgin calls for Qantas probe

Virgin calls for Qantas probe
By admin


Virgin Australia has called for a “full and proper investigation” into Qantas’s domestic market share policy as it again defended itself in the ongoing debate over foreign ownership regulations.

The carrier, which is 73% owned by Air New Zealand, Singapore Airlines, Etihad and Virgin Atlantic chairman Richard Branson, refused to become embroiled in discussion’s surrounding the Qantas Sale Act, saying it was “a matter between the Government and Qantas”.

But Virgin insisted it was doing nothing wrong by raising capital through its major shareholders.

“Over the last three years, Virgin Australia has had a consistent strategy of bringing strong competition to all key market segments, including the corporate, government, regional, leisure and budget segments,” the carrier said.

“We have made significant progress in this regard, despite our major competitor’s publically-stated strategy of maintaining 65% market share of the Australian domestic market at all costs. Virgin Australia believes that a level playing field should include a full and proper investigation of our major competitor’s 65% “line in the sand” policy”.

The airline went on to describe itself as a publically listed company which “fully complies with all its legal obligations”.

“Virgin Australia’s recently announced Entitlement Offer is designed to raise funds, which is something that any publically listed company can do,” it said. “As an ASX listed company, our aim is to create a long-term sustainable and profitable business for the benefit of shareholders, our 9,500 employees, our customers and ultimately for the Australian economy.”

Virgin said it has completed the initial issue of new fully paid ordinary shares which has raised $281.4 million.

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