Qantas' wild capacity chase

As airline capacity expands at a faster pace than actual demand, Qantas needs to consider alternative profit-maximising strategies with a smaller, more sustainable market share.

Qantas chief executive Alan Joyce is adamant the airliner must maintain a 65 per cent share of the domestic market over the long term. While this strategy has proven profitable in previous years, Virgin Australia’s aggressive expansion plans in light of a fresh capital injection may mean Qantas need to rethink its plans to continue doubling any new capacity Virgin add.

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