Branson and low cost carrier leaders team puts a spoke in Qantas and Jetstar’s plans.
It appears that the $11.1 billion Qantas buy out with the growth of Jetstar a key element may not be all smooth sailing, with in his usual style, Virgin’s Richard Branson reportedly in talks with AirAsia and easyJet to start a discount airline in Asia.
Reports say that Sir Richard is in discussions with easyJet founder Sir Stelios Haji-Ioannou and AirAsia boss Tony Fernandes and that they are believed to be looking at forming a large low-cost carrier connecting Britain with Malaysia, India and China.
It is unclear whether Virgin Blue would be part of the deal.
The latest Branson initiative could affect the growth expansion plans of Qantas and Virgin Blue, with the Qantas private equity team bidding for Qantas in expectation that the recently launched Jetstar international strategy will result in massive dividends as it is rolled out in Asia.
Qantas has said it plans to expand this low-cost international strategy in two stages, with the first already under way linking Australia to a series of Asia-Pacific region destinations, introducing international flying to a new generation of Australian tourists. In the second, more ambitious stage Jetstar, would fly to Europe through Asian hubs, with the Branson initiative a strong challenge to these plans because it would also focus on linking Asia and Europe.
An analyst said while details of the plan were not known, it could make life a little more difficult for Qantas and it won’t be a massive change in the landscape as there are already dozens of low-cost carriers in Asia.
A Qantas spokesman said the airline could not comment until more was known and a Virgin Blue spokeswoman said it was not in talks with Sir Richard and the two discount airlines.
If Virgin Blue were to join with the planned airline, then the Australia-focused first leg of Jetstar’s international strategy could face increasing competition with Virgin Blue working on plans to boost international operations and negotiating rights with the US Government for daily flights.
Branson launched Virgin Blue, but now holds only 25% of the airline, having hoped to increase this, but Toll Holdings, which inherited 62% with its purchase of Patrick in May, said it planned to hold on to its stake.
Qantas shares closed at $5.22, well below the $5.60 private equity consortium bid.
Report by The Mole
John Alwyn-Jones
Vegas’s Billion-Dollar Secrets – What They Don’t Want Tourists to Know
Visit Florida’s New CEO Bryan Griffin Shares His Vision for State Tourism with Graham
Chicago’s Tourism Renaissance: Graham Interviews Kristin Reynolds of Choose Chicago
Graham Talks with Cassandra McCauley of MMGY NextFactor About the Latest Industry Research
Destination International’s Andreas Weissenborn: Research, Advocacy, and Destination Impact
Graham and Don Welsh Discuss the Success of Destinations International’s Annual Conference
Graham and CEO Andre Kiwitz on Ventura Travel’s UK Move and Recruitment for the Role
Brett Laiken and Graham Discuss Florida’s Tourism Momentum and Global Appeal
Graham and Elliot Ferguson on Positioning DC as a Cultural and Inclusive Global Destination
Graham Talks to Fraser Last About His England-to-Ireland Trek for Mental Health Awareness
Kathy Nelson Tells Graham About the Honour of Hosting the World Cup and Kansas City’s Future
Graham McKenzie on Sir Richie Richardson’s Dual Passion for Golf and His Homeland, Antigua
ADS PRO 
Qatar Airways offers flexible payment options for European travellers
Phocuswright reveals the world's largest travel markets in volume in 2025
Cyclone in Sri Lanka had limited effect on tourism in contrary to media reports
Skyscanner reveals major travel trends 2026 at ITB Asia
In Italy, the Meloni government congratulates itself for its tourism achievements