Virgin forced Qantas to cut domestic costs: report

National carrier says Virgin's aggressive campaign has caused its domestic arm to refocus.

Virgin Australia Holding's (VAH) aggressive campaign for local market share has forced Qantas Airways (QAN) domestic business to lower costs and refocus on customer services, The Australian Financial Review reports.

According to the newspaper, Qantas' head of domestic operations Lyell Strambi conceded John Borghetti taking the helm of Virgin in 2010 was "quite threatening" as it drove the national carrier's costs higher.

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