Qantas update on international strategy
09-Mar-2012 Qantas today announced that discussions with Malaysia Airlines on a partnership, including the establishment of a new premium airline, would not continue due to parties being unable to reach mutually agreeable commercial terms.
Qantas Chief Executive Officer Mr Alan Joyce said Asia remained a priority for the Qantas Group and it continued to explore opportunities in the region, including joint ventures and alliances. However, mindful of global economic uncertainty, and consistent with Qantas' focus on disciplined financial management, the group will allocate minimal capital to such ventures.
"Last year, Qantas announced a five-year plan to address the challenges facing the international business," Mr Joyce said.
"The transformation of Qantas' international business remains vital, with plans to return the international business to profitability in the short term on track. In the medium term, the Qantas flying businesses, both domestic and international combined, will exceed the cost of capital on a sustainable basis."
This four pillar strategy includes restructuring the international network; creating a sustainable business model; improving the customer experience and increasing the Group's focus on Asia, the world's fastest-growing region.