Qantas strikes first in Virgin fight

AUSTRALIAN carrier Qantas has fired the first shot in a threatened price war with Sir Richard Branson.

Branson's Virgin Atlantic recently won permission to fly on the profitable 'kangaroo route' from London to Sydney via Hong Kong, competing with Qantas, British Airways, Cathay Pacific and Singapore Airlines.

Qantas, in which BA holds 17%, today unveiled beefed-up services from Brisbane and Melbourne, and a new direct service between Perth and Hong Kong, starting on 29 March.

Qantas is offering an introductory fare of A$1028 (£439) on the Perth-Hong Kong route, more than A$1,100 below the current travel cost and more than halving the travelling time.

Its passengers currently have to travel to Hong Kong from Perth via Adelaide and Melbourne, a trip that on average takes more than 17 hours.