Rational behaviour puts Virgin back on a stable flight path

Sustainable and rational competition has finally arrived in the aviation industry, and it's already having a material impact on the fortunes of both Virgin and Qantas.

There is extreme operating leverage in airlines. A year ago, when Qantas and Virgin Australia seemed to have embraced a mindset of mutual destruction, it worked savagely against them. Now, however, with the ending of the capacity war, it is working for them.

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