Tomcat Qantas sets a Tiger trap
SYDNEY – Qantas has gone Tiger-hunting with plans for low-cost subsidiary Jetstar to open new regional aviation bases in Darwin and Perth to serve fast growing Asian markets.
Qantas has revealed that it will acquire up to 188 narrow body aircraft to support the further growth of its two brands, Qantas and Jetstar, in Australia and Asia.
The aircraft will be used to defend a minimum 65 percent Qantas group share of the Australian domestic market and to expand low cost services to South East Asia.
Qantas Chief Executive Geoff Dixon said the aircraft would be principally B737-800s, which were Qantas’ main narrow body aircraft, and A320s, which were the core aircraft in Jetstar’s short haul fleet.
In its commentary on the purchases, the Centre for Asia Pacific Aviation said, “Like the biggest tomcat on the block, Qantas is clearly today sending a big signal to both Virgin Blue and Tiger (and any other prospective entrants) that it will take no prisoners.
“This order will necessarily be factored into future planning by those airlines and, in due course, by any prospective purchaser of Virgin Blue.
“In this way, Qantas is effectively exercising the market power that comes with dominance – at the same time as protecting that dominance.”
Singapore’s Tiger Airways has international flights into Australia, and is expanding its domestic network Down Under.
Ian Jarrett
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