Qantas CEO, Alan Joyce stated it will be forced to reduce cash reserves or take out loans to pay for AUD7.1 billion in aircraft orders and renewals for the next three years, if profitability does not improve (The Australian, 10-Sep-09). Mr Joyce stated the carrier will need to generate cashflow of AUD5.5 billion for the aircraft, borrow up to 85% of aircraft value or draw on its AUD3.6 billion cash balance. The carrier has AUD19 billion in aircraft orders over the next ten years.
Qantas to reduce cash reserves or take out loans to pay for aircraft orders
You may also be interested in the following articles...
Airbnb becomes a mainstream corporate option as Qantas adds it to its FFP partners
On 4-Oct-2016, Qantas announced it had concluded a partnership with Airbnb, the world leader in the sharing economy's accommodation revolution. According to Qantas this represents "the first time Airbnb has worked with an airline in this way to reward Frequent Flyer members when booking accommodation through Qantas’ website – and is the next step in Qantas’ partnerships with innovative digital and technology businesses".
The partnership, along with deals with the major global TMCs and growing adoption among corporate travellers, has moved Airbnb from the realm of couch-surfing to an accepted corporate travel option, forcing travel managers to adapt or risk alienating their staff.
Emirates-Qantas JV expands as partnerships become more intricate, while some airlines go it alone
Qantas and Emirates are again evolving global airline alliances and partnerships. Four years after announcing their landmark joint venture, Qantas in late 2016 is expected to disclose additions to the way it serves Europe in partnership with Emirates. The possible changes – a new nonstop London flight, reintroducing an Asian stopover – may seem incremental. There is a significant impact to the many airlines competing in the Europe-Australia market, but the underlying relevance is global.
The expansion of the JV would not be possible without the increased comfort that Emirates and Qantas feel toward each other, and their ability to have intricate models for handling the increasingly complicated partnership and number of hubs involved. JVs are no longer in a binary classification of existence or absence; there is a scale from rudimentary to near-consolidation.
As JVs like Qantas-Emirates become more sophisticated, the basic JVs – or even airlines without – are dearly lacking. There has been a profusion of JVs in recent years, with more on the way, but they have tended to be confined. Partners need to be more comfortable with each other in order to add additional airlines and markets, later consolidating as they stitch together individual partnerships.