A recent report on Qantas Airlines described how: Qantas has finally blinked in a vicious capacity battle with Virgin Australia … Qantas will freeze domestic capacity in the first three months of the...

A recent report on Qantas Airlines described how: Qantas has finally blinked in a vicious capacity battle with Virgin Australia … Qantas will freeze domestic capacity in the first three months of the financial year because of weak consumer confidence and a slowdown in the mining sector that have hit at a time when capacity has outstripped demand. It marks the formal abandonment of a strategy of maintaining a line in the sand at 65 per cent domestic market share … Source: (Freed 2014). a Why might Qantas have adopted the strategy of commiting to supply 65 per cent of the passenger seats required for the domestic Australian market? b Why do you think that Qantas decided that it should cease its strategy of commiting to supply 65 per cent of the market