Qantas CEO Alan Joyce, in response to recent media claims the airline is looking to establish a premium-focused subsidiary in Singapore, would not confirm or deny the reports, but said that the airline’s pursuit of one option would not be a ''silver bullet'' for improving the international business (Sydney Morning Herald, 17-May-2011). The CEO said the plan will consist of "multiple projects" including some within Asia (The Australian Financial Review, 17-Mar-2011). Mr Joyce said the plans being considered by his international taskforce led by Lesley Grant would become as important to the group's strategy as the launch of Jetstar was. Mr Joyce said a lot of the market share the airline has ceded in recent years has been "particularly into the Asian market, which is a high-growth market." "We can't have our head in the sand," he said. "Our international business is loss making. It has severe structural challenges."
Qantas' international plans to have 'multiple' projects
You may also be interested in the following articles...
Australia and New Zealand hit highs in 2016, but 2017 will lose a little lustre
Australia and New Zealand enter 2017 on a different level from 12 months previously. The biggest change, not just compared to 2016 but since the global financial crisis, is that Qantas is revelling in a successful turnaround.
South Pacific aviation markets will be defined by China’s expansion
The nature of the South Pacific's geography makes finding the right partners for its airlines essential for their survival in international long haul markets – as most are.
The region is characterised by relatively liberal access regimes and by partnerships of varying levels – in New Zealand especially, where Air New Zealand’s international network is dominated by JVs. Virgin Australia has built a ‘virtual alliance’ alongside HNA, Singapore Airlines, Etihad and Delta, with very little of its own metal flying outside Australia. At Qantas Group, international performance has improved markedly following its Emirates partnership, as its operating focus has shifted from Europe toward Asia and North America, with local JVs, and close partnerships with American Airlines and China Eastern continuing to grow and mature.
For all airlines in the region, the China market will define much of the growth over the coming decade. (This report is taken from the Jul/Aug-2016 issue of CAPA's Airline Leader)