PPRuNe Forums - View Single Post - 20 buyers now circling Virgin Australia
View Single Post
Old 1st May 2020, 01:03
  #22 (permalink)  
chance
 
Join Date: Nov 2008
Location: australia
Posts: 75
Likes: 0
Received 0 Likes on 0 Posts
Allan Joyce and QF are not just going to throw out the red carpet to allow a V2 a gilt edged inside running back into the market because its nice to have two mainline airlines. Like wise with ANZ should a trans Pacific service be operated by V2.
Qantas will flood the market with excess capacity at a discount price that will secure the already nervous customer base from forward purchasing tickets and chancing their luck with V2 or a travel agent like Flight Centre with the possibility they might fold. The market loves stability. A short term drop in yield by QF would be worth the long term gain of driving V2 out of the market or reducing their market share so that they are just a fringe player. All this is speculation of course and assumes that Deloitte can do a deal with some punter with very deep pockets who is willing to recover their multi-billion dollar investment over a long period of time given the skinny yield in in the game
chance is offline