Qantas has revealed international business is suffering, during a press conference at the Australian Tourism Exchange (ATE) 2012 in Perth, Western Australia.
Although Qantas’ overall portfolio is relatively strong Qantas executive manager of global sales Stephen Thompson said it was trying times for the airline’s international pursuits.
“Qantas domestic, Qantas Link, Jetstar in Australia and across Asia, our frequent flyer program and our freight business are doing exceptionally well, however there is one part of our organisation that continues to struggle and that’s our Qantas international business,” Mr Thompson said.
“We have some strategies in place to address that and clearly the breadth of our portfolio means we are well placed to withstand the various challenges, the economic cycles, fuel prices which are still at record levels and the natural disasters that have occurred.”
There is an added pressure on the aviation industry as a whole given the financial crisis in Europe and that is one of the determining factors putting pressure on Qantas’ international business according to Mr Thompson.
“We identified in August 2011 that our international business was a single source of problems for us and we set about creating a five year strategy to try and turn that around… returning business to profitability by 2014 and exceeding cost of capital by 2015.”
Qantas have established business units within the airline recently and appointed two new CEO’s; Simon Hickey for Qantas international and Lyell Strambi for Qantas domestic.”
“Both Simon and Lyell have been given these new responsibilities with the objective to have an internal focus on business so that we can identify the challenges and have people dedicated to turning it around,” Mr Thompson said.
Mr Thompson was adamant that the airline had received no offers in reference to recent speculation surrounding a potential take-over by private equity groups.
“The reality is that the Qantas Group remains in a very strong financial position… and there is no plan to raise capital, sell core assets or pursue any short-term measure that might compromise our long-term strategy.“We’re absolutely focused on developing the right network, increasing efficiency, whilst continuing to explore exceptional customer service for our consumers both from an inbound and outbound perspective and that is not going to change,” Mr Thompson said.
Source = e-Travel Blackboard: P.T