Vulnerable Qantas flies a fine line

Qantas cannot afford to cede any market share to arch rival Virgin because the eventual loss of volume and yield advantage could create a one-way route to oblivion.

There appears to be a perception that Qantas’ crisis is self-inflicted because of its obdurate refusal to budge from its 65 per cent ‘’line-in-the-land’’ market share in the domestic industry. The consequences of abandoning that objective, however, could worsen the plight, which has just been underscored by the loss of its precious investment-grade credit rating..

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