Manila Bulletin
April 27, 2012
Sydney. Australian flag carrier Qantas is still considering Singapore as the base for a premium carrier in Asia, chief executive Alan Joyce said in a report published Monday.
Qantas’ Asian plans, which it sees as key to its strategy of revitalizing its loss-making international business, were dealt a blow when talks with Malaysian Airlines over the premium joint-venture collapsed last month.
Talks with Singapore on the issue had also lapsed but Joyce told The Australian newspaper that the airline was still looking at a range of options for a premium Asian airline, including the city state.
“This will take a bit longer than we originally thought, but we’re still keen to set up a premium airline in Asia and we’re still looking at a range of options available to us -- and Singapore is one of them,” Joyce said.
He added that Qantas was still talking to the Singapore government on the idea.
“We work with them on a range of issues and one of them is keeping the door open to the possibility of a premium airline,” Joyce told the newspaper.
Qantas holds a 65 percent share of the domestic Australian market but has struggled with an under-performing international business.
It is attempting to refocus on Asia, the world’s fast-growing aviation market, and last month announced a new Hong Kong-based budget airline, Jetstar Hong Kong, which it hopes will be in the air in 2013.
But Joyce said that for long-term success Qantas, which has a weak market share in Asia, needed to participate in the premium end of the regional market.
Showing posts with label Australia Qantas Airways. Show all posts
Showing posts with label Australia Qantas Airways. Show all posts
Friday, April 27, 2012
Thursday, June 16, 2011
Qantas cuts costs, cancels orders
Philippine Daily Inquirer
Reuters
June 16, 2011
Australia's Qantas Airways will cut spending by AUD$700 million (USD$750 million) and plans to cancel aircraft orders as it battles waning demand, high fuel costs and investor displeasure with its shares trading near multi-year lows.
Qantas, which suffered a blow to its reputation after an Airbus A380 accident last year forced it to ground its flagship aircraft, said it will cut capital expenditure by AUD$400 million up to the end of fiscal 2012 and will reduce aircraft leasing costs by AUD$300 million.
With its shares at two-year lows, pilots threatening strike action, costs rising and the domestic economy going through a rough patch, Qantas has been under pressure to take decisive action, with some analysts suggesting its credit rating could come under pressure.
The airline has already offered cabin crew voluntary redundancy in hopes of cutting 350 jobs and raised fares several times to combat its AUD$3.7 billion fuel bill.
Qantas now expects its domestic capacity to grow by just 5.5 percent, below the 8 percent projected earlier and the airline will cancel or defer a fifth of its aircraft deliveries next year.
Australia's economy contracted by the fastest rate in 20 years in the first quarter and recent data on retail spending and consumer sentiment indicates households are feeling more pain than earlier thought and were unlikely to sharply raise consumer spending.
In addition, households have sharply raised their savings as they expect interest rates and mortgage costs, to go even higher.
Reuters
June 16, 2011
Australia's Qantas Airways will cut spending by AUD$700 million (USD$750 million) and plans to cancel aircraft orders as it battles waning demand, high fuel costs and investor displeasure with its shares trading near multi-year lows.
Qantas, which suffered a blow to its reputation after an Airbus A380 accident last year forced it to ground its flagship aircraft, said it will cut capital expenditure by AUD$400 million up to the end of fiscal 2012 and will reduce aircraft leasing costs by AUD$300 million.
With its shares at two-year lows, pilots threatening strike action, costs rising and the domestic economy going through a rough patch, Qantas has been under pressure to take decisive action, with some analysts suggesting its credit rating could come under pressure.
The airline has already offered cabin crew voluntary redundancy in hopes of cutting 350 jobs and raised fares several times to combat its AUD$3.7 billion fuel bill.
Qantas now expects its domestic capacity to grow by just 5.5 percent, below the 8 percent projected earlier and the airline will cancel or defer a fifth of its aircraft deliveries next year.
Australia's economy contracted by the fastest rate in 20 years in the first quarter and recent data on retail spending and consumer sentiment indicates households are feeling more pain than earlier thought and were unlikely to sharply raise consumer spending.
In addition, households have sharply raised their savings as they expect interest rates and mortgage costs, to go even higher.
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