CAPA: Qantas attempting to defend market share with 787 move

Qantas Group is signaling a reshaping of its domestic and international strategy with the bringing forward of eight of its 50 787s on order to mid-2012, according to the Centre for Asia Pacific Aviation.

"Qantas the mainline carrier is under attack on several fronts on domestic routes” and is likely to lose some of its 65% share of the Australian market as the decade unfolds, CAPA said. It suggested that the 787 announcement (ATW Daily News, July 15) implies a renewed focus by QF and its LCC Jetstar on domestic operations. It is aiming to protect its position in both the leisure and premium markets with the return of A330s from Jetstar to Qantas as the 787s are delivered, the organization said.

QF is under attack from Tiger Airways, which plans to add substantial capacity in the next two years, and Virgin Blue, which plans an assault on Australia's domestic business market. CAPA sees the possibility of Blue deploying V Australia 777-300ERs on domestic routes to snare business traffic. Its 777s "are a disaster waiting to happen for Qantas in the domestic arena,” it said.