AUSTRALIA-Qantas CEO Alan Joyce announced today where the airline wanted to be in five years time, how they will get there and how they will measure the success along the way, in a 2011 Strategic plan focusing on improving return to shareholders.
While facing challenges from increasing Chinese carriers in the international market and competition from the Middle East, Mr Joyce recognised a weakness in Qantas International with the short term objective for the airline to return Qantas International to profitability.
To do this, Qantas is working with alliance partners to open a broader range of destinations, connections and frequencies through gateway ports such as Dallas Fort Worth and Santiago.
Plans to invest in a premium airline based in Asia are also on the table, positioning the airline within the South East Asian marketplace and capturing premium customers who have been frustrated with the lack of frequencies and flight time options throughout the region.
In a bid to drive down operating costs, Qantas will in the next five years take major steps towards a simplified and highly flexible fleet of next generation aircraft. Already operating the A380, Qantas will be one of the first to operate the game-changing Boeing 787.
Mr Joyce recognised that even with a strong Australian resource-based economy, the airline would not be immune from challenges with the gloomy economic prognosis.
“As a business we are highly adaptive, scalable and capable of moving quickly to respond to challenging circumstances. Our fleet strategy is a clear example of this,” Mr Joyce said.
The airline plans to continue its focus on lowering cost and improving productivity by capturing targeted growth opportunities.
Mr Joyce closed by saying although it has been a challenging period for the business and shareholders, with unprecedented level of operational and external issues, the business has prevailed because of focused strategy to drive long-term shareholder value.
“We have the right team, the right business model and the right approach to capital management to succeed and generate sustainable returns.” Mr Joyce said.
While facing challenges from increasing Chinese carriers in the international market and competition from the Middle East, Mr Joyce recognised a weakness in Qantas International with the short term objective for the airline to return Qantas International to profitability.
To do this, Qantas is working with alliance partners to open a broader range of destinations, connections and frequencies through gateway ports such as Dallas Fort Worth and Santiago.
Plans to invest in a premium airline based in Asia are also on the table, positioning the airline within the South East Asian marketplace and capturing premium customers who have been frustrated with the lack of frequencies and flight time options throughout the region.
In a bid to drive down operating costs, Qantas will in the next five years take major steps towards a simplified and highly flexible fleet of next generation aircraft. Already operating the A380, Qantas will be one of the first to operate the game-changing Boeing 787.
Mr Joyce recognised that even with a strong Australian resource-based economy, the airline would not be immune from challenges with the gloomy economic prognosis.
“As a business we are highly adaptive, scalable and capable of moving quickly to respond to challenging circumstances. Our fleet strategy is a clear example of this,” Mr Joyce said.
The airline plans to continue its focus on lowering cost and improving productivity by capturing targeted growth opportunities.
Mr Joyce closed by saying although it has been a challenging period for the business and shareholders, with unprecedented level of operational and external issues, the business has prevailed because of focused strategy to drive long-term shareholder value.
“We have the right team, the right business model and the right approach to capital management to succeed and generate sustainable returns.” Mr Joyce said.
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