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Qantas looks to add long-haul routes to remain competitive

8-Feb-2011 10:51 AM

Qantas CEO Alan Joyce stated the airline is preparing to increase international services to recover market share lost to international competitors including Emirates and Virgin Blue (Bloomberg, 07-Feb-2011). Mr Joyce stated that a team of 20 executives are looking at all options, which the CEO said includes a more aggressive deployment of fuel-efficient and popular A380 equipment and an alliance with a foreign airline. Qantas’s long-haul international traffic to and from Australia fell 8% in the year ended Jun-2010, leaving the flag carrier with 20% market share, down from 35% in 2000. Mr Joyce stated Qantas “isn’t returning its cost of capital, and the other businesses have been compensating for it for some time … that can’t continue, and we need it to grow.”