Qantas has reported a AUD$2.84b net loss, which is well above the expected AUD$1.1b. However pre tax losses were lower that the expected AUD$750m at AUD$644m. Investors are however holding on to stock and an intraday rise of around 6% seems to be holding. The rise is due to the CEO Joyce’s statement of returning the airline to profitability by the middle of 2015. Qantas has seen a steady decline in value and has been unable to compete effectively in a market space with Virgin locally. The Australian government has likewise not come to the financial aid of Qantas, which has been begging the government to remove foreign ownership threshold from the national carrier. Competing for the discount end of the market has not made for any gains for Qantas and has likely let previously loyal customers astray and away from the once prestigious carrier. American Express has set the gold standard with remaining a superior value proposition and has never looked at catering for the average Visa and MasterCard client. Qantas has many lessons to learn from American Express from which it had disaffiliated itself in early 2010 by no longer providing loyalty flights for American Express clients who has now sided with Virgin.