Qantas share price holds firm despite Virgin ‘Switch-A-Roo’ play

The Qantas Airways Limited (ASX: QAN) share price is remaining steady following the latest ploy by its competitor, Virgin Australia.

At the time of writing, the airline operator’s shares are slightly down by 0.19% or 1 cent to $5.27 apiece.

Let’s take a closer look at what its biggest rival is up to.

Virgin announces partnership with Myer to compete with Qantas

Investors are shrugging off the latest news circling media outlets with the Qantas share price relatively flat for today.

As reported by The Age, Virgin Australia has teamed up with Australia’s largest department store operator, Myer Holdings Ltd (ASX: MYR).

Under the partnership, members of Virgin’s frequent flyer program will be able to spend their points to shop at Myer.

This comes as Virgin has been busy behind the scene in an effort to boost its partnership credentials.

In the past 18 months, the company has expanded its program benefits with Qatar Airways, 7-Eleven and Medibank.

For example, Virgin Velocity members can earn points and status credits and redeem points to over 150 destinations with Qatar Airways.

The Gulf-based carrier was recently named the world’s best airline for the second year in a row by Australian-based aviation safety and product rating agency, AirlineRatings.com.

Virgin announced the move with Myer as a “playful campaign” to give consumers more options for those wanting a change.

Commenting on the latest ploy, Virgin Velocity boss Nick Rohrlach said:

We’ve been in growth mode since coming out of COVID-19 as more people seek out rewards programs.

The Switch-A-Roo was developed in response to a number of people saying they’ve historically flown with other airlines, want to change but don’t want to lose their status.

Currently, there’s around 10.9 million Velocity members compared to Qantas’ 12 million frequent flyers.

Qantas share price snapshot

Since the start of 2022, Qantas shares have travelled on a rollercoaster to post a gain of 5%.

However, when looking at a larger time frame such as the last 12 months, its shares are relatively flat.

Based on today’s price, Qantas commands a market capitalisation of roughly $9.96 billion.

The post Qantas share price holds firm despite Virgin ‘Switch-A-Roo’ play appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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