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Analysis and Comment (16)

Commentators have clamoured for the head of Alan Joyce after Qantas posted a $2.8 billion statutory loss. AAP/Paul Miller

Qantas turn-around: is Alan Joyce the right leader for the job?

Since becoming CEO in November 2008, Alan Joyce has led Qantas through one crisis after another: the global shut-down of operations in the 2011 industrial dispute; a major downgrade of Qantas credit rating…
Questions are being asked of the Qantas board over fleet decisions made years ago. Halans/Flickr

Did Qantas bet the house on the wrong planes?

When Qantas posted a A$2.8 billion loss - the highest in the airline’s history - last week, one critical point was that $2.6 billion came from a write-down of the value of the aircraft in the Qantas international…
Qantas is investing in a loss-making strategy, and there’s no easy way out. Dave Hunt/AAP

Qantas can bleed now or later, but capacity war must end

Tony Abbott has thrown a curve ball at Qantas in refusing to offer up the debt guarantee it wanted, but seeking to abolish Part 3 of the Qantas Sale Act in its entirety. This opens the door to foreign…
Qantas: out of options? Neuwieser/Flickr

Nothing short of a debt guarantee will save Qantas

Imagine that Virgin Australia was majority owned by a Chinese state-owned enterprise (SOE). Then, if the owners of Virgin tipped A$350 million of new equity into the company to sustain Virgin through a…
Qantas chief Alan Joyce and CFO Gareth Evans have a lot of work to do to return Qantas to profitability. Quentin Jones/AAP

Qantas job cuts just the start in long haul to recovery

Virgin Australia has joined arch rival Qantas in delivering a multi-million dollar half-year loss - albeit on a smaller scale. Both airlines have swung from profit to loss - Virgin from a prior half-year…
Qantas doesn’t just have a cost management problem: its strategy is failing. AAP

The 5000 Qantas job losses should include Alan Joyce

As was widely expected, Qantas this morning announced a major restructure of its operations. Included in that announcement are: 5000 job losses. A fleet restructure. Salary freezes. Route restructures…
Virgin Australia is trying to revive the supposed romance of aviation’s past. Virgin Australia

Romance reborn: can glamour reboot Virgin Australia’s image?

Remember when airline travel was all about glamorous hostesses, dashing pilots and the stylish, well-behaved jet-set class? No, I don’t either. But it’s a rose-tinted view of the past Virgin Australia…
Airport lounges, loved by frequent flyers, don’t necessarily engender brand loyalty. Richard Moross/Flickr

Airline lounge war could prove futile for Qantas and Virgin

Recently Qantas and Virgin have been fighting a war for “high value” corporate contracts by refurbishing their invitation-only lounges. But is this a wise strategy? The airline industry has long been stuck…
The Qantas vs Virgin war is now being fought on a broader battleground, with new players rapidly gaining ground. Michael Coghlan via Flickr

Aussie airlines feel the pressure as international competition strengthens

The most recent round of what is presented in Australia as a battle for supremacy in a two-horse race saw Qantas and Virgin Australia revealing their annual results. Qantas reported a net profit for the…
CEO Rob Sharp will preside over a leaner Tigerair, now under the wing of Virgin Australia. AAP

Virgin’s takeover ensures Tiger is no longer toothless

The corporate regulator’s approval of Virgin Australia’s 60% stake in fledgling low-cost carrier Tigerair (formerly known as Tiger Airways) marks the Australian aviation industry’s return to an effective…
Although tightly linked to each other, airlines and the aircraft manufacturing industry don’t generally seem to be heading in the same direction. Flickr/FreeFoto

One flies planes, the other makes money: the two sides of aviation

A few months ago I was invited to a small gathering organised by executives from a large international airline (one you most certainly have heard of). About a dozen of us were there and the mix was varied…
While airlines struggle to mitigate costs of operation, frequent flyer programs have become lucrative businesses in their own right. AAP/Dan Peled

Airlines spread their wings with omnipresent loyalty programs

Frequent flyer programs have long since expanded out of their airlines, with points now being exchanged across supermarkets, banks and insurance companies. Australia has two domestically owned frequent…
The same day tourism professionals gathered to hear a glowing report from Tourism Australia, Qantas dumped its promotional sponsorship with the national body.

By dumping Tourism Australia deal, Qantas hands a golden opportunity to Virgin

One week ago, two very different groups gathered in two different cities to talk about tourism. In Sydney, more than 250 industry professionals were being briefed by Tourism Australia chief Andrew McEvoy…
Virgin Australia has announced a series of deals that will see it take a controlling stake in low cost carrier Tiger Airways.

Virgin Australia gains low-cost and regional foothold

Virgin Australia has announced a series of deals which will see it sell a 10% stake to Singapore Airlines, gain a 60% share in low-cost carrier Tiger Airways Australia and challenge the dominance of Qantas…
Qantas will now have to work very hard to persuade people to trust their brand again. AAP

We’re hopping mad now, so how will Qantas win us back?

In 2011, brand is everything in the corporate world. While the rest of the business operations are considered a cost, marketing makes money. And central to so much of modern marketing is the brand, built…

Research and News (3)