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Virgin and Qantas at loggerheads over kangaroo route
Virgin Atlantic boss Richard Branson said it could be as early as summer 2004 that his airline increases competition on the ‘kanagaroo route’ by launching flights to Australia, but Qantas’ boss says the route is already competitive. Following negotiations between the UK and Hong Kong, Mr Branson hopes to launch a daily flight between London Heathrow and Sydney with a two-hour stopover in Hong Kong. If he does get regulatory approval, Qantas chief executive, Geoff Dixon said Virgin would be the 21st airline to offer services between the UK and Australia. He added: “Virgin Atlantic has given the impression that there is little competition on the Kangaroo Route. In fact, the UK route is extremely competitive with around twenty airlines operating services between the UK and Australia.” These include Air New Zealand, British Airways, Cathay Pacific and Emirates. If Virgin gets the go-ahead, it will be able to link up services with it’s sister carrier in Australia, Virgin Blue. This would connect passengers arriving in Sydney with Melbourne, Perth and Brisbane among other Australian cities. According to Mr Branson, the two airline executives made a bet about whether Virgin would get the rights to fly to Australia within 18 months. He claims the two agreed that the loser would wear cabin crew uniform and serve on the winner’s aircraft from London to Sydney. In his usual ebullient manner, Mr Branson added: “Oh and by the way Geoff, I’ll have a gin and tonic.” Mr Dixon, who has not mentioned the bet with Mr Branson, says that he hopes the positive talks between Hong Kong and the UK would lead to the granting of rights to operate between Shanghai and London. He is keen to compete on the route, which Virgin Atlantic operates four times a week. He added: “At a time when Qantas is being denied an opportunity to compete with Virgin Atlantic over Shanghai, Virgin Atlantic has given the impression that there is little competition on the Kangaroo Route.”
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