Interesting stuff. I believe QF and BA use the alliance agreement to justify what is known as the joint service agreement, and its not something that is going to change considering the majority of the top global airlines all do it. Virgin must be one of the only ones not yet in an alliance?

Nevertheless he won’t be able to change the attitude of BA and QF, and will just have to come into the market and offer it some direct competition. To be honest I think RB is making too much out of this. Base fare for LHR-SYD is about £500, which for a half way round the world flight does seem reasonable. I don’t see him undercutting those prices particularly if he ever wants to make a profit, and his impact on the market will be negligable.