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Qantas May Axe Routes, Seek Ventures
By Robert Fenner - Jul 11, 2011
Qantas Airways Ltd. (QAN) may cut routes and seek tie-ups with competitors as Australia’s largest carrier works to reverse losses at its international business, according to analysts.
The airline may stop flying to South Africa and South America to focus on routes to London and Los Angeles, said Neil Hansford, chairman of Strategic Aviation Solutions, a Sydney- based industry consultant. It may also shift Hawaiian services to the Jetstar budget unit, he said.
Qantas Chief Executive Officer Alan Joyce has promised a “ruthless” review of operations after forecasting two years of annual losses at the international unit following a loss in market share. The airline is losing travelers as Singapore Airlines Ltd. (SIA) and Dubai-based Emirates lure business class customers with newer planes and free rides to airports.
“Qantas international has stood still for decades and everyone caught up and overtook them,” said Chris Weston, an institutional dealer at IG Markets in Melbourne. “When I fly with them for business it doesn’t feel like the others.”
The Sydney-based carrier’s share of travelers to and from Australia has fallen to 19 percent in April from 35 percent in 2001, according to official data. It has maintained a two-thirds share of the domestic market for almost a decade.
http://www.bloomberg.com/news/2011-0...s-flights.html
By Robert Fenner - Jul 11, 2011
Qantas Airways Ltd. (QAN) may cut routes and seek tie-ups with competitors as Australia’s largest carrier works to reverse losses at its international business, according to analysts.
The airline may stop flying to South Africa and South America to focus on routes to London and Los Angeles, said Neil Hansford, chairman of Strategic Aviation Solutions, a Sydney- based industry consultant. It may also shift Hawaiian services to the Jetstar budget unit, he said.
Qantas Chief Executive Officer Alan Joyce has promised a “ruthless” review of operations after forecasting two years of annual losses at the international unit following a loss in market share. The airline is losing travelers as Singapore Airlines Ltd. (SIA) and Dubai-based Emirates lure business class customers with newer planes and free rides to airports.
“Qantas international has stood still for decades and everyone caught up and overtook them,” said Chris Weston, an institutional dealer at IG Markets in Melbourne. “When I fly with them for business it doesn’t feel like the others.”
The Sydney-based carrier’s share of travelers to and from Australia has fallen to 19 percent in April from 35 percent in 2001, according to official data. It has maintained a two-thirds share of the domestic market for almost a decade.
http://www.bloomberg.com/news/2011-0...s-flights.html
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