30 Apr 2012

Airline war looming

7:00 am on 30 April 2012

The airline industry is getting more competitive in Australia with signs of a capacity war between Qantas and Virgin over the higher margin business traveller market.

Radio New Zealand's Sydney correspondent says Virgin recently took delivery of two new Airbus 330s and has given notice it plans to go after Qantas on the Brisbane, Sydney and Melbourne routes.

But Qantas says it will fight back and intends to defend its 65% share of the domestic market in Australia.

The rivalry between the two airlines has also taken on something of a personal air. Virgin's new chief executive John Borghetti was formerly at Qantas, where he was passed over for the top job by Alan Joyce.