VIRGIN Australia overtook Qantas Airways to become Australia’s largest and most reliable airline at the end of last year, sending a warning to the marquee carrier and supporting a potential return to the stock market.
Bain Capital-owned Virgin Australia garnered a domestic market share of 35 per cent as at December, surpassing Qantas’ 34.6 per cent, the competition watchdog said in a report on Tuesday (Feb 18). It’s the first time Qantas has been pushed from the top spot since early 2022. Jetstar, the low-cost airline brand owned by Qantas, had 29 per cent of the market.
According to the Australian Competition and Consumer Commission (ACCC), Virgin picked up passengers after the collapse of regional carrier Rex in mid-2024, following an ill-fated expansion into capital city routes. Virgin had the busiest December, typically a time of strong leisure demand in Australia, in the airline’s 24-year history, the regulator said.
Bain postponed plans for an initial public offering of Virgin Australia in 2023, and is yet to announce a replacement for outgoing chief executive officer Jayne Hrdlicka. The airline has long struggled to make a dent in Qantas’s domestic dominance. Tuesday’s report also sends a warning to Qantas, attempting to re-establish its reputation as a marquee carrier after a torrid post-Covid period defined by lost luggage and cancelled services.
Virgin scrapped just 0.6 per cent of its flights in December, while Qantas cancelled 2.7 per cent, the highest proportion among the airlines tracked by the watchdog. The long-term average flight cancellation rate in Australia is 2.2 per cent.
Separately, the ACCC said it plans to approve a proposed alliance between Virgin and Qatar Airways, which will see 28 new weekly return services between Doha and Perth, Brisbane, Sydney and Melbourne.
Qatar Airways has agreed to buy 25 per cent of Virgin Australia. BLOOMBERG
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