QANTAS will not stand in the way of Virgin Australia pursing a close tie-up with Singapore Airlines.
It says the two Australian airlines need alliances because they are at a big disadvantage to their government-owned competitors.
In giving its tacit support to the planned deal, Qantas said heavy regulation, ''extremely high'' fixed costs, competition from government-owned airlines, and the tyranny of distance made it ''very difficult'' for Virgin and itself to recover its cost of capital on international routes. Full story
