Losses made Qantas stronger, says chairman

Last year’s economic and environmental challenges helped build a “stronger” Qantas, according to the airline’s chairman.

Despite a statutory loss after tax of $244 million, the 2011/12 financial year positioned the group for a “sustainable future”, with the group’s portfolio “performing well” this year, except Qantas International.

Speaking at the 2012 annual general meeting last week, Leigh Clifford explained steps taken by management since August last year have equipped the airline “for success” in an aviation environment that has “changed dramatically” over the past decade.

Among initiatives include the launch of the five year turnaround plan, which saw cuts of up to 1,000 jobs, renewed focus on Asia with the launch of Jetstar Japan and cuts on non-profitable routes.

As well, the airline announced a new partnership with UAE carrier, Emirates, which although pending regulatory approval, is expected to takeoff from March next year.

“We have had to make tough decisions, because a failure to respond would have threatened the sustainability of the group as a whole,” he said.

“Management has re-focused on core strategy, building on the profitable parts of the business and addressing the weaknesses.

“Important reforms that were not undertaken in the pre-GFC period are now being made, with a new management structure, new technology, more responsive customer service, and more efficient operations.”

Improving its domestic operations, late last month Qantas announced the launch of flights between Sydney and the Gold Coast as well as an increase in flights to Tasmania.

Sourced: etravelblackboardasia