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Old 20th Feb 2003, 03:32
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Wirraway
 
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Virgin Blue now has 30% (Geoff Dixon)

Dow Jones

Dixon said while he couldn't rule out redundancies if any war with Iraq is prolonged, the outlook beyond this potential conflict is solid for Australia's national carrier.

"We will be in a very very strong position after the war is concluded," Dixon said.

He also said the company will reassess its strategic alliance with regional rival Air New Zealand Ltd. if the proposal is too heavily compromised by the demands of regulators, governments and industry groups.

"We have no plans at this stage to change any of our offer on our proposal with Air NZ," he said.

"If the ask is too much the deal won't be done."

Dixon also said Virgin Blue, the no-frills domestic rival to Qantas, has about 30% of the market. This is above the 25% estimated by Virgin Blue and industry analysts.

"They will get a third but I don't think they will get too much more," he said.

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