Travel Industry News at TravelNewsAsia.com since 1997
Tuesday, 30 May 2023

Qantas Unveils Details of Group Strategy Through 2030

(30/05/23)  Qantas has unveiled details of its strategy through to 2030, as the Australian carrier moves from recovery to renewal and growth.

At its first Investor Strategy Day since the COVID19 pandemic, members of the Group’s Management Committee outlined long-term plans across the key categories of customer experience, sustainability and people.

The group also disclosed plans for maintaining FY24 margin targets across its flying businesses and announced new earning targets through to FY30 for Qantas Loyalty and Project Sunrise.

Vanessa Hudson, Group CFO and CEO-designate, said, “We’re confident in reaching our FY24 margin targets and we’ve set some ambitious but achievable earnings goals beyond that, because we think ambition is key to long-term performance. All of the extra activity we have planned has to be underpinned by a focus on sustainability, particularly decarbonisation. We’re determined to be a leader in this space and that’s supported by the new commitments we’ve made today, as well as calling for more action industry-wide in the form of a sustainable aviation fuel mandate. Our long-term focus remains delivering for customers, employees and shareholders, and making sure we have a strong business that generates strong returns is the best way to enable that.”

Qantas A330s at Changi Airport in Singapore. Picture by Steven Howard of TravelNewsAsia.com Click to enlarge.
Qantas A330s at Changi Airport in Singapore. Picture by Steven Howard of TravelNewsAsia.com

Key highlights include:

- Detail on the ‘right aircraft, right route’ approach that underpins the current network and supports new next-generation fleet arriving from this year onwards (A220, B787 and A320-family).

- Plans for an overhauled Qantas app, launching towards the end of 2023, that will give customers more control over their bookings, introduction of baggage tracking and better integration of Qantas Loyalty.

- Changes to Qantas’ boarding process from October 2023 to improve on-time performance and to better recognise tiered Frequent Flyers, in response to customer feedback.

- Plans to significantly expand the current range of redemption options for Frequent Flyers.

- Continued investment in low fares, particularly by Jetstar, with around 10 million base fares under $100 offered this calendar year and 5 million reward seats via Qantas Loyalty.

- Launching a $400 million Climate Fund to accelerate progress towards the group’s sustainability targets. This includes a further $110 million investment in addition to the $290 million (comprised of joint funding by Qantas and Airbus) already committed. The fund will focus on stimulating production of Sustainable Aviation Fuel (SAF), high integrity offsets that deliver dividends for nature and carbon removal technology, as well as technologies that deliver on efficiency and waste reduction targets.

- Calling for the Australian Government to introduce a SAF blending mandate, similar to steps taken in other jurisdictions including the UK, Europe, US and Japan to help kickstart local production. The UK, Europe and Japan have set or proposed SAF mandates of between 5 and 10 per cent to be reached by the end of the decade and the US has set a 2030 production target of 3 billion gallons per year.

- Sharing benefits of recovery with all employees – including ~$11,500 in bonuses in FY23-24 plus ongoing improvement to staff travel benefits.

- Plans to grow by creating up to 8,500 operational roles in Australia by 2033 to support new aircraft, additional flying.

- Training and promotional opportunities unlocked by fleet growth, including via Pilot Academy and Engineering Academy. The group will deliver around 2 million training hours this year alone.

- Restoring ‘employer of choice’ status as the industry recovers. Over 160,000 applications received for 7,000 jobs across the group; attrition rates have declined from a peak of 18 per cent in December 2021 to an average of 5 per cent across the group (to as low as 2 per cent for pilots).

- Through cost and revenue improvements, sustain margins of 18% for Qantas Domestic, 15% for Jetstar Domestic from FY24 onwards.

- Qantas International margins to grow from ~5% pre-COVID to more than 8% in FY24, and up to 10-12% with Project Sunrise and evolution of freight.

- Through structural changes to eCommerce market and Qantas Freight business, targeting $250m in annual earnings contribution from FY30 onwards compared with FY19. Of this $250m p.a., $150m p.a. has already materialised, growing to another $100m p.a. by FY30.

- Introduction of A350 growth aircraft and Project Sunrise flying expected to deliver significant incremental earnings increase, reaching an estimated $400+ million EBIT per annum in first full year of having all 12 aircraft in service.

- Qantas Loyalty to reach its FY24 EBIT target of $500m-$600m, increasing to $800m-$1,000m by FY30. Key profit drivers will be continued expansion into hotels and holidays, more partnerships including ‘points burn’ opportunities with major retailers, diversification in financial services and growth of the existing Qantas Business Rewards program for SMEs.

- Targeting $300m p.a. in ongoing transformation, driven largely by new technology enabling better efficiency. This includes fleet renewal, better disruption management, and schedule and workforce planning.

“This is a structurally different business than it was before COVID, operating in markets that have also changed. We’re very well placed to take advantage of the opportunities that creates and the detail we’ve released today shows our strategy to do it,” said Qantas Group CEO, Alan Joyce. “New technology is central to our plan and the next-generation aircraft that have started arriving will transform our network over the next few years. We’ll be able to serve our customers better, reduce our cost base through lower running costs and carve out some new competitive advantages. Our revenue projections and track record for ongoing transformation show we can invest heavily in people and technology at the same time as generating strong returns for shareholders. That’s exactly the kind of national carrier we want to be.”

Latest videos Electric Airport Taxis at Almaty Airport (ALA) in Kazakhstan - Exclusive Video Interview with Co-Founder, Auez Tulegenov, Novotel Living and Ibis Almaty Jetisu Hotels in Kazakhstan - Interview with GM, Arseniy Tagaev, and Almaty Marathon 2023 - Video Interview with CEO, Saltanat Kazybayeva.



Headlines: Xiamen Airlines Appoints APG as Offline GSA in Kuwait and Saudi Arabia  Hong Kong Airport Reports August's Cargo and Passenger Numbers  Marriott Signs Two Luxury Hotels in Trojena, Saudi Arabia  Honeywell Expands Partnership with Asia Pacific Aircraft Component Services  American Airlines Signs MOU with Embraer to Join Energia Advisory Group  Scoot Signs E190-E2 Pool Program Services Agreement with Embraer  Air Canada Orders 18 Boeing 787-10s; Cancels Order for Two 777 Freighters  Alton Aviation Publishes 2023 - 2033 Global MRO Demand Forecast  Airbus Appoints Christian Scherer as Commercial Aircraft CEO  Amadeus Working with Accenture and Microsoft on New AI-Powered Travel Assistant  IndiGo Launches Fights Between Delhi and Almaty, Kazakhstan  Widerøe Appoints APG as Online GSA in United Kingdom  CapitaLand Ascott Trust Completes Sale of Four Serviced Residences in France  Air Astana Receives Five-Star Rating from APEX  United Airlines Appoints Michael Leskinen as CFO and EVP  Rosewood to Rebrand Three Lodges in New Zealand  New Dual-Branded Hotel in Kuala Lumpur Appoints Senior Management Team  Bonza to Launch Sunshine Coast - Darwin, Gold Coast - Darwin and Melbourne - Alice Springs  IHG Opens First avid Hotel in New York, USA  Austria to Order Embraer C-390 Millennium Multi-Mission Aircraft  Maldivian Orders Two ATR 42-600 Turboprop Aircraft  IndiGo Adds San Francisco to Codeshare Partnership with Turkish Airlines  Virgin Australia Upgrades Retailing Strategy with Sabre Air Price and Ancillary Solutions  TUI Expands Use of SITA OptiClimb to All Five Airlines in Group  Marshall J Orton Joins Fairmont Singapore and Swissôtel The Stamford as GM of F&B  China Airlines Launches Flights Between Taipei and Kumamoto, Japan  IATA FEGA Identifies Potential for LOT Polish Airlines to Reduce Fuel Consumption  British Airways Joins Fight Against Dementia by Partnering Alzheimer's Society  Hong Kong Int. Aviation Academy Launches First Cadet Pilot Programme  IndiGo Becomes Official Airline of Blue Tigers Indian Football Team  Marriott Opens World's Largest Aloft Hotel  Resort in Maldives Partners Karis Scarlette for Baa Atoll Ballet Retreat  Shady Abdelaziz Joins Four Seasons Hotel Tunis as DOSM  Intra-African Passenger Traffic to More Than Quadruple in Next 20 Years  Indian Air Force Takes Delivery of First C295 Aircraft from Airbus  Tailwind Air Appoints APG as Online GSA in USA  S Hotels Renovates and Upgrades IT Infrastructure at Key Properties in UK  AirAsia to Move Flights to New Airport in Siem Reap, Cambodia  Air Peace Orders Five Embraer E175 Aircraft  China Airlines Rewards FFP Members with Monthly Promotions  IHG Opens New-Build Holiday Inn & Suites in Geelong, Australia  Aruba Working with SITA to Upgrade Immigration Experience at AUA  Langham Opens Cordis Hotel in Xuzhou, China  SMBC Aviation Capital Expands 737 MAX Order Pipeline with Deal for 25 Boeing 737-8s  PHI Signs Agreement for 28 Airbus Helicopters  Anantara Chiang Mai Launches Ping River Cruises on Restored Rice Barge  Thaicom Orders a Flexible Telecommunications Satellite from Airbus  Korean Air Begins Transition to Electronic Air Waybills for Cargo  Tim Toerber Joins Assaia as Vice President of Business Development for the Americas  Elbit Systems Launches Capsule that Combines Skylark III with SkyStriker  Singapore Airlines to Resume Flights to Brussels in 2024  Vietnam Airlines Signs MOU for 50 Boeing 737 MAX 8s  Thai Airways Adjusts BKK-HKT Schedule; Increases Flights to China  Elbit Systems to Upgrade IDF's Mini Skylarks  DidaTravel Appoints Ala Andriuta as Head of Destination Marketing  Cathay Pacific to Resume Flights to Chennai, India in 2024  Qatar Airways Partners Chef Ton for Delicious Thai Flavours in Business Class  Air Astana Opens Flight Training Centre at NQZ, Kazakhstan  Vietnam Airlines to Launch Flights Between Saigon and Perth, Australia  SalamAir to Launch Year-Round Flights Between Muscat and Beirut, Lebanon  Air Astana Launches Flights Between Almaty and Tel Aviv, Israel  Hawaiian Airlines Opens Ticket Sales on First Boeing 787-9 Dreamliner Flights  Airlines Report Highest RPK and PLF on Record  IHG Signs Six Hotel Indigo Properties in Europe  Turkish Airlines Increases A350 Order Book with Deal for Ten -900s  IATA Reports Global Air Cargo Data for July 2023  Norse Opens Ticket Sales on Paris - Los Angeles Flights  Cartier Opens Boutique at Sydney Airport in Australia  Mazen Abilmona Appointed GM of Pullman Singapore Hill Street Hotel  Air France-KLM to Establish A350 Component Maintenance Services JV with Airbus  Alan Joyce Brings Forward Retirement; Vanessa Hudson Appointed Qantas Group CEO and MD  SAS Appoints Ginger Hughes as CTO; Paul Verhagen as CCO  Eric Pellen Joins Fairmont Amman as Executive Chef  Bombardier Partners Collins Aerospace for Avionics Upgrade on In-Service Global Jets  IndiGo Revamps Inflight Catering Service  FlyArystan to Launch Almaty - Delhi and Astana - Dushanbe Flights  Marriott Opens First Autograph Collection Hotel in Thailand  Construction Begins on Peppers Gladstone Hotel in Central Queensland, Australia  Natalie Dau to Conduct 4-Day Next-Level Performance Retreat at Chiva-Som, Hua Hin  KAI to Begin Serial Production of Light Armed Helicopters from Airbus  AirAsia Thailand Launches CNX - Lampang and NAN - Phrae Transfer Services  Mantra Melbourne Airport Hotel to Undergo Multi-Million Dollar Refurbishment  Qantas Removes Expiry Date on COVID Credits  Indonesia Signs MOU with Boeing for 24 F-15EX Fighter Jets  Airbus Opens Automated A321XLR Equipping Hangar in Hamburg, Germany  Novotel Living and Ibis Almaty Jetisu Hotels in Kazakhstan - Interview with GM, Arseniy Tagaev  Aeroflot to Increase Flights from Russia to Bangkok and Phuket in Thailand  Matthew Senyard Appointed Lodge Manager of Four Seasons Safari Lodge Serengeti in Tanzania  Marriott Expands Luxury Collection to Japanese City of Nara  Embraer and CAE to Expand Pilot Training Program in Singapore  Marriott Opens First Moxy Hotel in Australia  Hong Kong Airport Reports July Passenger and Cargo Traffic  Few Tickets Still Available for Singapore F1 Grand Prix 2023  Qantas Orders 12 Airbus and 12 Boeing Aircraft  Finnair to Launch Flights Between Rovaniemi and Tromsø  Association of Asia Pacific Airlines Reports July's Passenger and Cargo Traffic  Bonza to Launch Flights Between Gold Coast and Launceston, Tasmania  Ramsey Saarany Appointed GM of Anantara Mina al Arab Ras Al Khaimah Resort  Emirates Reports One of its Busiest Summers Ever  EVA Air Extends Distribution Agreement with Amadeus  Almaty Marathon 2023 - 4K Video Interview with CEO, Saltanat Kazybayeva  Accor Hotels in Australia to Feature Peloton Bikes  Sabre Expands Presence in Fiji and South Pacific Islands with Airline Rep Services  Air New Zealand Orders Two ATR 72-600 Turboprop Aircraft  IndiGo to Operate All International Flights from BLR's Terminal 2  Electric Airport Taxis at Almaty Airport in Kazakhstan - Video Interview with Co-Founder  Elias Pertoft Appointed Pre-Opening GM of Waldorf Astoria Seychelles Platte Island  IHG Opens Third Hotel Indigo in Australia  Embraer E195-E2 Receives Type Certification from CAAC  Jörg Arnold Appointed Cluster Director of Andermatt Hotels and GM of The Chedi Andermatt  Marriott Signs Edition Hotel in Dali, China  Ethiopian Airlines to Launch Thrice Weekly Flights to London Gatwick, England  Boeing Appoints Alvin Liu as President - China  Charles Fisher Moves to Cairo as GM of Four Seasons Hotel  Jirarat Ninpadub Appointed GM of Le Meridien Phuket Mai Khao Beach Resort  IndiGo to Launch Flights Between Delhi and Almaty, Kazakhstan  Accor Signs Second Sebel Hotel in Wellington, New Zealand  IHG Launches Garner a New Midscale Conversion Brand  Finnair Plus to Adopt Avios as Currency and Become a Spend-Based Platform  Two Luxurious Manor Homes Open at Fairmont St Andrews in Scotland  Thai AirAsia Reports Q2 and H1 2023 Results  Klook Survey Highlights Latest Travel Trends of Millennials and Gen Zs in Asia Pacific  Vietnam Airlines Signs MOC with Singapore Tourism Board  Aviation Safety and Training Singapore to Upgrade Flight Simulators with Lido FMS  Pictures from Miss International Queen 2023 Transgender Beauty Pageant in Pattaya, Thailand  Exclusive Video Interviews with 17 Miss International Queen 2023 Contestants  Living With One Eye - Six Years On by Steven Howard  HD Videos and Interviews  Podcasts from HD Video Interviews  RSS Feed - Travel Industry News  Ticker - Travel Industry News  Travel Industry News Archives  Travel Trade Shows  High-Res Picture Galleries  Travel News Asia - Latest Travel Industry News 

Subscribe to our Travel Industry News RSS Feed Travel Industry News RSS Feed from TravelNewsAsia.com. To do that in Outlook, right-click the RSS Feeds folder, select Add a New RSS Feed, enter the URL of our RSS Feed which is: https://www.travelnewsasia.com/travelnews.xml and click Add. The feed can also be used to add the headlines to your website or channel via a customisable applet. Have questions? Please read our Travel News FAQ. Thank you.

     
Advertising
Advertising
Copyright © 1997-2023 TravelNewsAsia.com