Qantas chief executive Alan Joyce remains optimistic the airline’s new strategy will return it to profitability despite posting a $252 million first half loss.
Mr Joyce told reporters in Sydney on Thursday that its plan to axe 5,000 jobs, defer or sell aircraft and cut unprofitable routes would return Qantas to profitability in just three-and-a-half years.
“We have a plan to cover every aspect of the business to get it back to profitability and we have the courage and commitment of the management team to make that happen,” he said.
This is despite what he calls challenging conditions in the domestic and international aviation industry and a share price that has fallen from over $5 to just over $1 in the five years he has held the top job.
Mr Joyce has complained that during the past five years Australia has been hit by a giant wave of flights into the country and its main domestic competitor Virgin Australia has an unfair advantage in that its major shareholders are foreign-owned airlines.
“The impact of this unlevel playing field on our domestic airlines cannot be ignored,” he said.
The growing number of flights into Australia seems unlikely to change and, even if the federal government does change the Qantas sale act to allow higher foreign ownership of Qantas, someone still has to want to buy it.
Qantas’ former chief economist Dr Tony Webber on Thursday said this seems unlikely considering its record loss and falling share price. – AAP
