After four days of posturing by Qantas over Virgin Australia’s right to compete against it the row seems headed for a strategic draw.
If Virgin Australia gets the same debt guarantees that Qantas is seeking there will be no government supplied advantage to either carrier, and it will come down to how well each airline group is managed as well as which has the better value to offer their customers.
Virgin Australia CEO John Borghetti at its recent AGM
Did the previous Labor government do a secret deal with Qantas before Virgin Australia’s $350 million capital raising to prevent it being downgraded by investment ratings agencies?
In an open letter to Government released this afternoon Virgin Australia CEO John Borghetti raises media reports that the Labor in August had offered the “comfort letters to Qantas’s credit rating agencies, prior to our capital raising.”
A cumulonimbus storm reaching up to 60,000 feet: Image courtesy NWS
The FAA airworthiness directive concerning a serious icing vulnerability in the GEnx engines used on Jetstar’s 787-8 Dreamliners should be read carefully and in conjunction with recent weather reports concerning the wet season storm bands over northern Australia that lie across the Sydney-Denpasar route.
For the first time in the Qantas v Virgins and evil foreign backers hysteria that is pushing China and Indonesia tensions off the top of news pages a political figure has taken aim at alleged self harm by Qantas management.
It will seem unbelievable to some business leaders and economists, but the Australian Treasurer, Joe Hockey, has just said Qantas could get state money (meaning partial renationalisation) if a national debate says it is worth it.
The former minister for transport, Anthony Albanese, this morning canvassed in passing a ‘small equitable take up’ in Qantas by a government entity as a possible response to the apparent inability of Qantas to make more capital raisings.
In a somewhat vague and meandering interview on ABC 24, Albanese made many important points, and a few howlers.
Inside the newly upgraded Qantas heavy maintenance facility BNE: Qantas image
It is referred to as the Qantas wide body ‘strike force’ in some circles, a fleet of 30 Airbus A330s to be significantly refurbished and upgraded between late next year and mid-2016, and the airline today confirmed the work will be done at its Brisbane Airport heavy maintenance and engineering base.
The Emirates-Qantas Sydney Harbour fly-over. Who really came out on top? Qantas supplied photo
If the figures being quoted in Dubai concerning the boom in Australia traffic caused by the Emirates-Qantas partnership are true, Qantas has some serious questions to answer about who really benefited from the deal which took place at the end of March this year.
A reporter since November 30, 1960, Ben Sandilands looks at what really matters up in the sky: public administration of air transport and its safety, the accountability of the carriers, and space for everyone’s knees.