Qantas CEO says four major items have been key to change business

Qantas CEO Alan Joyce speaking at CAPA's Airlines in Transition Conference on 25/26-Mar-2015, stated (25-Mar-2015) the airline is one year into a three-year transformation strategy. Four major items that have been key to the changing of the Qantas business and Qantas Group:

• Creation of Jetstar. Created in 2004 in the face of the short-haul challenge from LCCs. Two major decisions contributed to its success: Jetstar was set up as independently as possible, without dependency on the mainline business. Jetstar was set up to coordinate flying with Qantas, with a committee formed to ensure that there was a not an overlap between Group airlines, to avoid cannibalisation;
• Transformation programme. Accelerated over the last 12 months. Aiming to take AUD3 billion in cost out of the business. Since 2008, the carrier has taken nearly 30% of its costs out;
• Broadening the business base. Building revenue streams that are immune to the cyclical nature of the airline industry. The Qantas loyalty scheme is particularly important in this. Qantas has also launched a large number of new businesses to leverage its loyalty scheme;
• Partnerships. Qantas has been developing its business in Asia via partnerships and redressing imbalances in its Qantas International business with relationships such as its alliance with Emirates.