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Published on Thursday, January 14, 2021

An Aussie airline could collapse, says Qantas boss



Qantas boss says Australia's aviation market isn't big enough for three major airline groups and predicts one could still perish before a full post-pandemic rebound.


Unsurprisingly Alan Joyce says it won't be Qantas Group.


Joyce said in an interview a big market change is the emergence of regional carrier Rex.


He believes Rex moving into jet service and launching Melbourne to Sydney flights could spark a price war.





"My personal view is that this market has never sustained three airline groups and it probably won't into the future," he said at an online Reuters event.


It could lead to the collapse of either Virgin Australia or Rex, Joyce says.


"You can be guaranteed that Qantas will be one of them - it's who else is going to be in the market place post this and into the future is going to be interesting."


Rex is moving into the mainstream with an expected fleet of up to 10 Boeing 737s by the end of this year.


Qantas said its domestic flying capacity is at about 60% of pre-pandemic levels and hopes to increase that to 80% by the middle of 2021.


It also hopes to boost domestic market share to 70%.


 


Written by Ray Montgomery, Asia Editor

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  • yes Qantas is in trouble

    their most profitable route is now under seige. Qantas profits will plummet if they compete on price.

    By Michael Anderson, Friday, January 15, 2021

  • rex has much lower costs & no union problems

    Qantas has major union problems, now & ahead.

    By Michael Anderson, Friday, January 15, 2021

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