The study showed that while VA was matching JQ’s pricing in that booking period, it was not as competitive when it came to bookings 21-days or less prior to departure, instead aligning more with Qantas’ pricing.
Findings showed that VA was running a “hybrid carrier model” as a “strategic necessity”.
“This reflects VA’s strategy to compete for price-sensitive early bookers by simplifying some services while still leveraging its full-service offerings – such as frequent flyer programs and business class options – for less price-sensitive travellers closer to departure,” UniSA researcher Professor Shane Zhang said.
“Virgin Australia is walking a fine line between cost and service differentiation.
“It follows Jetstar just enough to remain competitive with budget-conscious travellers, but not so much that it dilutes the brand with higher-yield business customers,” he added.
Zhang also suggested that Qantas may need to reinforce its premium positioning as it faces a declining domestic market share with VA pushing hard.
According to the latest ACCC competition report, as of Jun 2025, Qantas had the biggest market share domestically on 37.8%, having increased it from Apr, while VA serviced 33.1% and Jetstar had 27.4%.
