Qantas wants its international business to break even by 2014-15, a plan which has been under pressure from competitors who are increasing their capacity (basically, the number of flights they are running).
The airline’s boss Alan Joyce has told the Australian Financial Review that despite this pressure, the company is still on track to meet the goal.
“We knew international yields would come down with the reaction to what we did with Emirates. But in the medium to long term, we do believe we are on track to meet our targets.
“The weaker Aussie dollar – provided the fuel price comes down – will be beneficial and I think will discourage people adding capacity to the Australian market.”
Yields, according to the article, have been under particular pressure in Asia. It’s alliance with Emirates saw it shift its international hub from Singapore to Dubai.
“Singapore has had a lot of growth, mainly driven by Qantas, actually, because we are recovering our position in that market.
“Yield is under pressure there because we needed to re-establish our frequency and connectivity for the Asian market. Hong Kong has seen a lot of capacity.”
There’s more here.
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