30-Sep-2010 10:45 AM

Gulf carriers struggling on kangaroo route: Qantas CEO

Qantas Airways CEO, Alan Joyce, stated Middle Eastern carriers are struggling to compete on the highly competitive "kangaroo route" between Australia and Europe and have been forced to reduce capacity on the sectors as they are losing substantial amounts of money (Sydney Morning Herald/ABC, 30-Sep-2010). Mr Joyce stated he remains a supporter of airline partnerships, despite consolidation being harder in practice than in theory, adding that he believes JVs are "the way for the airline industry to go forward". Mr Joyce stated he is confident that Qantas' relationship with British Airways will enable it to compete against the Middle East carriers and stated that it is also considering other partnerships. However, he added: "We don't see the need with the Middle Eastern carriers, because what is happening with the Middle Eastern carriers is that they are competing with the Asian-hub carriers."

Qantas: ''Even Emirates are now struggling with some of the capacity in the Australian market. Emirates have just pulled a service out of Sydney. They are finding it very difficult with lower load factors to compete with Qantas and British Airways ... There is a battle of the hubs happening which Qantas, because of its relationship with British Airways, is staying out of, and its performance is stable," Alan Joyce, CEO. Source: Sydney Morning Herald, 30-Sep-2010.

Qantas: "Competition in the Middle East is very intense and many carriers are not making money. Qatar is losing a lot of money, Etihad is losing a fortune and Emirates has just cut one of its three daily Sydney flights. So any extra capacity in there is always going to be a struggle," Alan Joyce, CEO. Source: The Australian, 30-Sep-2010.

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