QF CEO Alan Joyce speaks to Melbourne Press Club

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thewinchester

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Alan made an address to the Melbourne Press Club today, covering off what QF will be focusing on for the coming year.

Key topics were:

  • Navigating the recovery
  • Positioning the Group in Asia
  • Securing the future for Qantas International
  • Engaging our workforce, and
  • Strengthening our brand
Stand out comments:

On Asia and JQ:
The Qantas Group plans to contribute to Australia's Asian future, and also benefit from it. We are already laying the groundwork with Jetstar.

Jetstar has an aggressive pan-Asian strategy with huge potential. It is already Asia's largest low cost carrier by revenue. By next month, Jetstar will be flying from Singapore to 25 destinations in 13 countries, including seven ports in Greater China. Jetstar Pacific serves seven destinations in Vietnam's high growth economy of 87 million people.

Jetstar's approach will be to sustain its fast growth while keeping costs down; build up its brand strength in Asia; and develop its interline and code-share arrangements, with oneworld™ carrier Finnair its 21st and latest tie up.

B787 deliveries and perceptions of planning in fleet strategy:
We are now looking to get our first B787 for the Group towards the end of next year. It is going to be great for our business, and for our customers. It will help us simplify our fleet across both our airlines with significant fuel and maintenance efficiencies. Our customers will enjoy the improved flying experience with bigger windows, lower cabin pressure, and more direct flying to more destinations.

I have seen some speculation that Qantas leaders made an error back in 2000 and 2005 by committing the Group to the latest and best aircraft types in the A380s and the B787s. Don't believe it. This company's greatness is based on being the first with the best aircraft. We were the first airline outside the US to fly the B707s and enter the jet age, and we're proud to be leading the way again today.

Offshore maintenance:
There's a bit of a myth developing that we have sent all our engineering and maintenance offshore. Tell that to thousands of Qantas engineers! Frankly, this myth wouldn't worry me if it were true because all the world's other great airlines do their maintenance outside Australia. Aviation is a global high-tech industry, and there are centres of engineering and maintenance excellence around the world.

But the fact is that last year we undertook 93% of all our maintenance in Australia, and over 80 per cent of Qantas heavy maintenance. Far from it disappearing offshore, we have an engineering community of more than 5,500 people, including 357 apprentices in training and a further 60 due to commence training this month.
 
I have seen some speculation that Qantas leaders made an error back in 2000 and 2005 by committing the Group to the latest and best aircraft types in the A380s and the B787s. Don't believe it. This company's greatness is based on being the first with the best aircraft. We were the first airline outside the US to fly the B707s and enter the jet age, and we're proud to be leading the way again today.
I still think they should have bought the 777.
But then what do I know about running an airline.
Cheers
N'oz
 
I agree with his comments about the fleet. There is no doubt they should have ordered the 777 but the 777's biggest issue is its popularity.
 
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