Qantas CEO states foreign carriers are flooding the market

Qantas CEO Alan Joyce stated that the Australian market has been flooded by capacity increases from airlines in China and the Middle East (Business Review Australia, 05-Feb-2011).

Qantas: "To give you an idea, total growth in direct aviation capacity to Australia between 2003 and 2009 was 39%. Meanwhile, total inbound passenger growth was only about 10%. So that tells us these carriers are not growing the market, but simply taking existing demand. And the result is that Qantas International market share has fallen from 35%to 20%. Meanwhile the majority of our Qantas assets are tied up in this part of the business and it absorbs the majority of our capital expenditure." Alan Joyce, CEO. Business Review Australia, 05-Feb-2011.