Major Qantas restructuring looms

and focus on Asia to stem financial losses and a decline in market share.
The bold new strategy for its international operations will include the airline slashing up 1 000 job cuts while deferring delivery of six Airbus A380 super-jumbo jets for up to six years.
Part of the business plan will also see Qantas, Japan Airlines and Mitsubishi Corp. launch a new low-cost domestic airline, Jetstar Japan, by the end of next year.
The carrier will also launch a new joint-venture premium airline based in Asia, with the location yet to be finalised as it sets its sights firmly on the growth region.
Qantas has been grappling with disasters and surging fuel costs that have hit its bottom line and chief executive Alan Joyce said change had to happen.
“Qantas International is a great airline with a proud history,” he said.
“But it is suffering big financial losses and a substantial decline in market share. To reverse that decline we need fundamental change.
“Qantas International takes up enormous amounts of capital, and our cost base is around 20 percent higher than that of our key competitors,” he added.
“To do nothing, or tinker around the edges, is not an option.”
The key objective of the new five-year plan was to return the airline’s international operations to profitability, with a new focus on Asia, which Joyce said was the airline’s most important region.
“As a nation we used to fly over or via Asia, on our way to Europe,” he said.
“Now we fly to Asia, both for business and relaxation. And as Asian economies grow, the future will be about travel to and within Asia. “Our customers want to do business in Asia, and so do we.”
As part of the focus on Asia, Qantas will strengthen its relationship with British Airways, which will carry more passengers between Qantas’ Asian destinations and Europe. From early 2012, the Australian airline will still fly from Australia to Bangkok and Australia to Hong Kong, but British Airways will operate the Bangkok-London and Hong Kong-London sectors. – AFP.