Qantas unfazed by Virgin Australia's HNA deal: Alan Joyce

Qantas Airways CE Alan Joyce has brushed off any threat from changes in the Virgin Australia share register to his airline's position in the domestic and international market. China's HNA Aviation Tuesday agreed to buy a 13% share in Virgin through a $159m share placement to bolster its balance sheet, and Virgin has announced plans to fly to Hong Kong and Beijing from next year as a result. Qantas flies to Hong Kong from Sydney, Brisbane and Melbourne and to Shanghai from Sydney. It has partnerships with two of the three large state-owned carriers, China Eastern and China Southern. "I would rather have those partners and the relationships we have created," Joyce said in reference to HNA. "We think our position in China and Asia is very, very strong given we have a massive network in Australia. We will play our own game." Joyce said the indications so far were also that Virgin would act rationally in the domestic market, which along with the Qantas loyalty program comprises about 70% of the airline's business. Qantas in April warned of tougher conditions in the domestic market due to falling consumer confidence and the upcoming federal election that led it to cut capacity. Virgin has made similar moves to help shore up falling airfares at a time when its balance sheet is stretched. "When it comes to the competition, we want a stable competitive environment where the competition is acting commercially," Joyce said. "I think it is very clear from what the shareholders in our competitor have said is that they want a return. There is nothing anybody is saying which is that the competitive dynamic is going to change and that [Virgin] is not going to be a commercial operation."<br/>