Royal Bank of Scotland stated Qantas’ recent moves to strengthen its frequent flyer programme will make it harder for well-heeled passengers to switch to Virgin Australia's new loyalty scheme (The Australian, 20-May-2011). The broker said the deal with telco Optus would add incremental value to the programme and said the expansion of the programme was designed to cement loyalty, adding that the steps were “defensive measures intended to increase the attractiveness of [Qantas] to the corporate travel market and thereby reduce the incentive to switch to [Virgin Australia]".
Qantas FFP moves to hurt Virgin Australia: RBS
You may also be interested in the following articles...
Australia and New Zealand hit highs in 2016, but 2017 will lose a little lustre
Australia and New Zealand enter 2017 on a different level from 12 months previously. The biggest change, not just compared to 2016 but since the global financial crisis, is that Qantas is revelling in a successful turnaround.
South Pacific aviation markets will be defined by China’s expansion
The nature of the South Pacific's geography makes finding the right partners for its airlines essential for their survival in international long haul markets – as most are.
The region is characterised by relatively liberal access regimes and by partnerships of varying levels – in New Zealand especially, where Air New Zealand’s international network is dominated by JVs. Virgin Australia has built a ‘virtual alliance’ alongside HNA, Singapore Airlines, Etihad and Delta, with very little of its own metal flying outside Australia. At Qantas Group, international performance has improved markedly following its Emirates partnership, as its operating focus has shifted from Europe toward Asia and North America, with local JVs, and close partnerships with American Airlines and China Eastern continuing to grow and mature.
For all airlines in the region, the China market will define much of the growth over the coming decade. (This report is taken from the Jul/Aug-2016 issue of CAPA's Airline Leader)