international companies appear in the domestic air-services and the new entrants are more popular because of the low costs (Kain & Webb, 2003, p. 17). In 2014, a bitter price war began between Virgin and Qantas which contributed $8.75 million into debt a day. It contributes to a $2.8 billion loss for Qantas ---the worst situation in the group’s 90 years history for 2013-14. At the same time Virgin suffered from a $408.4 loss (Srisaeng, Baxter, & Wild, 2014). Facing the pressure of market downturn, VAH…
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