Virgin Australia chief executive John Borghetti says business class fares in Australia have dropped by a quarter in an airline price war and might drop further.
The airline is already competing for domestic economy class capacity.
Now Mr Borghetti has declared plans to target Qantas's business class travellers and capture at least 20% of the corporate travel market.
Mr Borghetti is targeting corporate travellers because he says Virgin is currently too exposed to discretionary spending by leisure customers.
Meanwhile, Mr Borghetti says Etihad Airways' approval to lift its stake in Virgin Australia to 10% will not alter their alliance partnership.
Air New Zealand has a 19% stake in Virgin.