Qantas Rejects Claims by Dr Jim Farmer

Qantas Airways today rejected completely a claim of "predatory conduct" made by Air New Zealand Acting Chairman, Dr Jim Farmer.

Dr Farmer's claim was made in an affidavit lodged with the Federal Court that also criticises actions of the Australian Government, the New Zealand Government, Unions, News Limited, Virgin Blue, Singapore Airlines and the Civil Aviation Safety Authority.

The criticism of Qantas relates principally to the airline's announcement on 28 March this year of a new domestic Economy Class air fare structure.

Qantas Chief Executive Officer, Geoff Dixon, said: "As we said at the time, the new Economy Class air fare structure was introduced to significantly simplify the booking process for customers by removing a number of outmoded conditions.

"The new structure recognised changing consumer demands and an independent assessment by an experienced US consulting firm confirmed that it was the most appropriate fare structure for the economic and competitive environment in Australia," he said.

"Qantas does not, at any time, act with the purpose of damaging our competitors. Qantas at all times acts with the legitimate purpose of maximising profitability and shareholder return. We have the right to compete and we took the action in March to offer a competitive, simple fare structure as demanded by our customers.

"Qantas put in place the systems necessary to manage the change to this new structure and if Ansett was not able to cope with the change - due to lack of investment or skilled management - then that is not our fault."

Mr Dixon added that Dr Farmer had attempted to support his criticism of Qantas by erroneously referring to the introduction by Qantas of an $88 return Sydney-Melbourne fare.

"There is no such fare offered by Qantas, although we do offer a $176 return fare between Sydney and Melbourne. This has been available, when capacity permits, since July 2001."

Mr Dixon also noted a report in today's edition of The Dominion newspaper that states Air New Zealand is planning to offer cheap fares across the Tasman, but not within New Zealand "where it has a virtual monopoly".