evolante
23rd Feb 2002, 14:39
News reports are stating that Virgin has denied any plans for a merger or joint activity with Ansett 11.
This means that from 28 February if all goes to plan then there will be three airlines competing for a limited market share on the main routes such as Sydney-Melbourne.
These sector fares are currently selling at $AUS88 and you dont have to be a wizard to work out that at this level, it is unprofitable to operate a much less than 90% loads. The Administrators for Ansett have admitted that Ansett has been losing at least $US1 Million a week trying to compete with Qantas by charging these type of fares.
It can surely be only a matter of time before Virgin Blue's profits slump or Ansett 2 is forced out of business.......
Virgin must be pretty confident to have walked away from an Ansett tie up.
This means that from 28 February if all goes to plan then there will be three airlines competing for a limited market share on the main routes such as Sydney-Melbourne.
These sector fares are currently selling at $AUS88 and you dont have to be a wizard to work out that at this level, it is unprofitable to operate a much less than 90% loads. The Administrators for Ansett have admitted that Ansett has been losing at least $US1 Million a week trying to compete with Qantas by charging these type of fares.
It can surely be only a matter of time before Virgin Blue's profits slump or Ansett 2 is forced out of business.......
Virgin must be pretty confident to have walked away from an Ansett tie up.