The real test for Qantas is performance consistency

The Qantas saga continues but with the good news of an expected turnaround for the first half of the year to December 2014. The Australian flag carrier is expecting profit to be between A$300 million (US$249 million) and A$350 million. After last year’s record A$2.8 billion loss, shareholders should be elated.

Courtesy Qantas

Courtesy Qantas

The spotlight is once again on Qantas CEO Alan Joyce, who told the media: “I’m here to complete the job that I started. With the company turning the way it is, I’m very confident that my tenure – as long as the board and shareholders are comfortable with what I’m doing – will continue.”

So, Mr Joyce gets to keep his job, silencing his critics after last year’s disastrous results.

It must have given Mr Joyce much pleasure to announce that all the company’s operating units including the hitherto loss-making international arm are expected to be profitable. He said: “We are seeing a more stable operating environment in most markets.” Referring to his brainchild transformation program, Mr Joyce added: “This turnaround shows our strategy is working.”

The past poor performance was blamed on high fuel costs and competition faced from Virgin Australia. The expected good result comes on the heel of lower fuel costs and apparently weaker competitive pressure. It is an obvious flipside of the coin. Added to this is the third reason of reduced capacity which bumps up the load factor and helps shore up fares. Granted that is a strategic initiative, Qantas has its lucky star to thank. The real test moving ahead is performance consistency.


About Dingzi
Writer by passion, with professional expertise in aviation, customer service and creative writing. Aviation veteran, author, editor and management consultant. Besides commentary on business issues and life-interest topics, travel stories and book reviews, genres include fiction, poetry and plays. Nature lover who abhors cruelty of any form to animals, and a tireless traveler. Above all, a dreamer.

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