Virgin Australia stated (18-Nov-2013) the "landscape of Australian aviation has changed forever. It is no longer a monopoly". The carrier noted that since 2010, Virgin Australia has been focused on a five-year strategy to bring competition to all sectors of the Australian aviation market and build a resilient business that can deliver sustainable performance for the long-term. It explained, "In that time, Australia has benefited greatly. We have grown our workforce from 6400 to more than 9500, creating more than 3000 Australian jobs and adding thousands more in contractor roles, we have increased our aircraft numbers from 87 to 144, we have established a strong presence in the corporate, regional and budget market segments, lowering airfares in these areas, we have transformed the customer experience for domestic travel and, importantly, we have forged innovative alliance partnerships with four of the world’s best airlines increasing Australia’s visibility in more than 460 destinations worldwide. All of this is good for the Australian economy". The carrier continued, "Up until recently, Australia’s corporate travel market was a monopoly for over a decade and Australian business travellers and the economy have suffered as a result of the lack of competition. Virgin Australia’s capacity increases since 2010 have been limited to routes that have been in need of further competition and frequencies, such as trans-continental routes and important regional routes throughout Australia. In fact, during the 2013 Financial Year, we added less than half of the capacity that our major competitor added to the market". The carrier also commenting on its capital raising, announced on 14-Nov-2013, stating it is designed to enhance Virgin Australia’s liquidity and gearing position. The carrier said, "It is important to note that should all Virgin Australia’s three major airline shareholders have board representation, we will still continue to have a majority independent board with an independent chairman and appropriate protocols in place which will ensure good management and strong corporate governance", adding: "We know we have chosen the right partners with the right intentions. They are all aligned in the common goal of wanting Virgin Australia to provide strong competition in the Australian aviation market". [more - original PR]
Virgin Australia: The Australian aviation market has 'changed forever', is 'no longer a monopoly'
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.
Gulf airlines in Australia/New Zealand: 2017 could surpass 2016's record growth
Qatar Airways' casual remark in Jan-2016 that it would launch nonstop service to Auckland has resulted in nearly two years of accelerated growth as competitors look to pre-empt Qatar. That, in turn, is driving Qatar to build its presence in Australia and New Zealand – which is disproportionately small compared to the presence of Emirates and Etihad. In Feb-2017 Qatar will finally launch nonstop service to Auckland, making that air service the world's longest flight. After the launch of flights to Australia's secondary city of Adelaide in May-2016, Qatar intends to open service to another smaller market – Canberra.
2016 was the most prominent year for Gulf airlines growing in Australia and New Zealand. Excluding Qatar's proposed Canberra service, and other services under consideration, 2017 will be the third largest year for growth, but depending on how commercial and aeropolitical matters evolve, 2017 could surpass 2016 for growth. So far, there will be more absolute growth from Qatar than Emirates in 2017, by comparison with 2016.
In Australia/NZ Gulf airlines have doubled their presence between 2012 and 2017. In Australia/New Zealand, by 2020, Gulf airlines could create the presence of two Singapore Airlines, an operation which established itself over many decades. Gulf growth has broader implications as their mostly European traffic flows challenge historical Australia-Europe hubs in Asia.