Pressure on Qantas as Emirates Increases Flights

The pressure is on Qantas after competing airlines Emirates announced it is increasing flights to Australia. This means Qantas would have more things to contend with, including its first annual loss since it was privatized.

Qantas is facing a tough battle between state-sponsored international carriers and a price war with Virgin Australia in the domestic market.

Just a week ago, Singapore Airlines announced that it would be growing its Australian market, thanks to country’s strong economy and the increasing desire of Aussies to travel.

Emirates, meanwhile, has announced that it is increasing flights to Perth by half starting early next year. It would also add flights to Adelaide, Emirates’ fifth destination in the country.

Emirates would now fly four times a week between Dubai and Adelaide, with more flights coming in February next year. Services to Perth would also increase from 14 to 19 a week starting December 1. By March 2013, it would have 21 flights.

Barry Brown, Emirates’ operations head, said the increase in flights is to take advantage of Australia’s growing economy. He added that more Aussies are also traveling and the country has become Emirates’ second or third highest source of revenue.

This means Qantas has to beef up its international operations despite an expected $450 million loss in the fiscal year. The airline also just sold its two catering plants to Gate Gourmet, the second-biggest airline caterer.