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Business Description: Qantas Airways Limited (QAN) main business is the transportation of passengers using two complementary airline brands - Qantas and Jetstar. QAN also operate other airlines, and businesses in specialist markets such as Qantas Holidays and Q Catering.
Strategy Analysis: QAN's core strategy is to profitably grow its two flying brands, Qantas and low-cost Jetstar. Qantas will seek to strengthen its leading positions in premium markets. Jetstar will expand locally and into international leisure markets. QAN also has Freight and Frequent Flyer businesses. The longer term strategy for QAN is to restructure its international business in an attempt to eliminate mounting losses. The strategy laid out by the company is to reduce the capital intensity of the business by forging partnerships with carriers in certain sectors that are uneconomical. The proposed code sharing arrangement with British Airways on the European sector is one such example. The expansion of Jetstar in Asia will continue as that has been a big success story. Plans to introduce a premium service in Asia and l a new service in Japan are intriguing. QAN is also looking to take significant cost out of this business.
Qantas Airways reported NPAT of $111m for the half-year ended 31 December 2012. Revenues from ordinary activities were $8.24bn, up 2.4% from the same period last year. Qantas Loyalty delivered continued growth in members and member engagement. Jetstar further improved its industry leading ancillary revenues per passenger, on top of 12% growth in passenger numbers. Diluted EPS was 4.9 cents compared to 1.9 cents last year. Net operating cash flow was $780m compared to $823m last year. No dividend was declared.
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The Age 23/05/2013 |
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The Age 23/05/2013 |
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The Age 23/05/2013 |
Australia's top commodities agency has detailed a year of woe for the local resources industry and joined the Reserve Bank in declaring the peak of investment in the sector.
The Age 23/05/2013 |
Significant job losses are expected at Telstra after the telco announced sweeping changes to its operational structure as it shifts away from its legacy business.
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