Virgin boss Richard Branson has blasted rival Qantas, saying the airline wouldn’t be in a financial mess if it was “better managed and offered the public a decent service”.

Writing on his blog at virgin.com, Branson claimed Qantas was suffering because Virgin Australia, in which his Virgin Group has a 10% stake, offered more customer choice and better value.

Branson was responding to a demand from Qantas that the Australian government cancels Virgin Australia’s international flying rights after the latter announced it was raising $350 million capital underwritten by its key stakeholders, Singapore Airlines, Etihad and Air New Zealand.

It claimed it was unfair it should have to compete with an airline whose losses were being underpinned by three state-owned carriers.

However, Branson said Qantas’ alliances were still larger than Virgin’s and it was determined to bleed his company dry. “But our improved position is having a big impact on Qantas, who are now complaining about the intensified competition,” he said.

“It seems strange to me that a Liberal Government would even consider tilting the playing field once again in Qantas’ 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.”

Wednesday, December 4, 2013