Saudi Gazette - Proxy war for Gulf carriers

Saudi Gazette - Proxy war for Gulf carriers:

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A Qantas plane (R) and a Virgin plane (L) sitting on the tarmac at Sydney's International Airport in this file photo taken on June 21, 2011. The bad-tempered battle between Virgin Australia Holdings Ltd. and Qantas Airways Ltd. over Australia's skies is a proxy for increasingly tough regional competition among carriers, including Etihad and Emirates. — AFP

The bad-tempered battle between Virgin Australia Holdings Ltd and Qantas Airways Ltd over Australia’s skies is a proxy for increasingly tough regional competition among carriers including ambitious Gulf airlines Etihad and Emirates.

The Australian rivals are already losing money in a bitter price war. Now they’re trading barbs over Virgin Australia’s move to tap its major shareholders — Etihad, Singapore Airlines , Air New Zealand — for A$350 million ($330 million) in new capital to bolster its balance sheet.

Analysts expect Virgin Australia to funnel some funds into its business class offering, upgrading onboard and lounge facilities as part of its drive to lure customers from Emirates-backed Qantas."

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