Qantas sees 'tapering off' of capacity in domestic market, still some way to rational levels

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."