Australia's biggest carrier, Qantas Airways has said that it is implementing a A$2bn cost-cutting plan in order to revive business.

The airline is taking steps to reduce its losses from operations by cutting costs.  Qantas, named Australia's most highly-regarded brand last year by the Reputation Institute, is struggling to maintain its market share as it is facing a price war with Virgin Australia.  The airline is implementing A$2 billion cost-cutting plan that includes a pay freeze and the lowest capital spending since 1998.

Experts have said that the cost cutting efforts might not be enough to revive its business.  The total annual revenue at the carrier is expected to fall this year for just the fourth time since 1993, according to analysts.

Virgin Australia has increased its market share in the country and now controls more than a third of the country's aviation market.  Virgin made just more than 12.15 Australian cents of revenue per kilometer for each seat during the six months till December compared to 10.10c for Qantas.  Mr Joyce has said that the airline is not looking for government aid and will continue to implement its cost cutting plans.