In a quest to expand its market share and break into the budget industry, the Australian carrier Qantas made the largest aeroplane order in Australian history couple of days ago.
The purchase of 78 A320NEOs and 32 A320s are to be the key of the Airline’s restructuring programme that will now focus on Asian flight routes. The A320s are suited for both long and short haul flights at large capacities – ideal for trips between Australia and Asia.
This increases the Australian airline’s factors of production and positively affects its potential growth.
The deal symbolises Qantas’ commitment to Japanese firms Mitsubishi Corp and Japan Airlines in its quest to set up a joint venture premium airline – a move that would strengthen its subsidiary low-cost carrier Jetstar; and provide more aggressive competition to the budget airline industry especially on routes between Asia and Australia.
The growth strategy seems logical as the route between the 2 regions are in high demand, mainly because both Asia and Australia are hubs for tourism, sports & arts and business.
Citation:
http://www.channelnewsasia.com/stories/afp_asiapacific_business/view/1157592/1/html
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