Flagship QF operation still in decline

Flagship QF operation still in decline
By admin

Qantas has revealed that its loss-making international business has continued to struggle in the six months since the group unveiled its controversial five year strategy, which saw 1000 jobs axed.

Chief executive Alan Joyce admitted that the losses had “gotten worse” but stressed that the further decline had been expected, exacerbated by economic factors at home and overseas.
“While we have a strong outbound travel market, the inbound market is flat and in particular, there is a softening of demand for travel out of the UK and Europe,” he said.
But he forecast that cost-saving measures would “kick in” over the next six months to deliver “positive momentum” on its international routes.
The same period will see the airline cut further “unprofitable” routes over the next six months. Singapore-Mumbai and Auckland-Los Angeles will be cut in May, followed by the replacement of B747 Sydney-Bangkok services with A330 aircraft from June and of the A330s on its Sydney-Auckland route with B737-800s.
Joyce confirmed that Qantas’ target for its international business was to break even within three years and to see capital returns within five years.
Meanwhile, he Joyce stressed the importance of Asia for the airline.
“Asia will continue to offer significant growth opportunities for Australian companies including Qantas,” he said.
Although no major announcement was made regarding the airline’s proposed premium Asian carrier, Joyce confirmed there was “a lot going on there”. He declined to comment further due to ongoing commercial negotiations.
Joyce added the group’s “acceleration” of Jetstar Japan, moving the launch date forward by five and a half months, signalled its commitment to the market.

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