Qantas Group CEO Alan Joyce, speaking at the CAPA Australia Pacific Aviation Summit, stated (08-Aug-2013) there has been a "tapering off" of capacity in the domestic market in the past few months but concedes there is still some way to go before it reaches more rational levels. Mr Joyce said capacity in the domestic market had lessened after growth reached 8% over the past year, but noted there still remained too much capacity growth in the market. He commented, "Overall, there is still big growth coming into certain markets," including in regional markets and in the low-cost leisure segment. Mr Joyce pointed to Tigerair Australia expanding services on domestic routes, which would result in Jetstar "protecting its position". He commented, "When capacity rationalises ... the position for everybody I think should improve....The capacity in the Australian domestic market has gone through these cycles before. It is a very competitive market."
Qantas sees 'tapering off' of capacity in domestic market, still some way to rational levels
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.
CAPA Aviation Outlook 2017: Australia & New Zealand - amid global uncertainty, China again the rock
As 2016 draws to a close, CAPA - Centre for Aviation reviews the past year for aviation in the Australia Pacific region and what lies ahead for 2017.
In an uncertain world, from the disruption of Brexit to the likely confrontationalist attitudes of a Trump administration, and instability in many parts of the world, from Russia to the Middle East to Asia, Australia and New Zealand's aviation sectors are mostly in rude health, with liberal policy settings and globally high service levels. Yet each of the main airlines in Australia and New Zealand still relies heavily on its domestic markets.
China has asserted its relevance in world aviation recently and over the past couple of years its airlines have rapidly expanded into the two south Pacific countries. With 2017 declared the ‘China Australia Year of Tourism’ by China’s tourism bureau, continued substantial activity can be expected in that market.
Qantas' 787 Perth-London service plans have made clear the role of the long haul medium size equipment, but aside from the innovative elements, retaining a cost focus and keeping the basics under control will be key to the future.