Qantas has come under fire from Sir Richard Branson who claims that if it was “better managed” then it would not be in a “financial mess”.
The Virgin Australia boss hit out following Qantas’ backing of a plan suggested by Australian treasurer Joe Hockey that foreign ownership rules covering the country’s flag carrier should be relaxed.
Current laws restrict foreign stakes in Qantas to 49%, with overseas airlines allowed to own just 35%.
Qantas claims this puts it at a disadvantage to rivals such as Virgin Australia, which is not subject to the regulations.
But Sir Richard, writing on the Virgin.com website, claims that the Australian market is more than competitive already.
He wrote: “We began competing with Qantas in 2000 with just two planes and one route.
“Over the last 13 years we have grown the airline to more than 140 planes but flying in Australia has sometimes been akin to having a bleeding competition with a blood bank.
“Qantas was the giant in the market with a myriad of foreign alliances and advantages determined to bleed Virgin Blue, now Virgin Australia, dry.
“However thanks to the superior quality of Virgin Australia’s management and its staff, it has not only survived but has now managed to create a much more level playing field which is offering the customer more choice and better value.”
Qantas chief executive Alan Joyce wants “urgent, immediate action” from regulators to ensure his airline grows, despite already sealing a tie-up with Emirates and dominating the Australian market, the Daily Telegraph reported.
But Sir Richard said any such move from the authorities would be “grossly unfair”.
“Today Qantas’s alliances are still larger than Virgin’s, but our improved position is having a big impact on Qantas, who are now complaining about the intensified competition.
“It seems strange to me that a Liberal government would even consider tilting the playing field once again in Qantas’s favour.
“It would be grossly unfair, undermine the great work of Virgin Australia’s management team and staff and bewilder investors in Australia and worldwide.
“If Qantas was better managed and offered the public a decent service it would not be in the financial mess it is currently claiming it is in.
“Government should be there to encourage competition, not to prop up the weak when the going gets tough.”