Qantas boss Alan Joyce says he is not concerned by the alliance being strung together by Abu Dhabi-based Etihad Airways and Virgin Blue.
Australia’s competition watchdog last week gave approval to Virgin Blue and Etihad to cooperate on joint pricing and scheduling.
AAP, in a report carried in today’s Australian media, said the deal opened the way for an Australian carrier to return to the Middle East for the first time since 1991.
Joyce said Qantas was offered a deal first but “the numbers didn’t stack up”.
“We had the opportunity of flying into Abu Dhabi,” Joyce told reporters.
“[Etihad was] very keen for a closer relationship.
“When we decided that we weren’t going down that path, that’s when they made a decision to actually approach Virgin.”
Joyce said competition in the Middle East was intense and many of the local carriers were losing money.
“Etihad is losing a lot of money, Qatar is losing a lot of money,” he said.
“So any extra capacity in there is always going to be a struggle and we were very comfortable with our partners.”
