Why this Qantas plan must succeed
GEOFFREY THOMAS AVIATION EDITOR COMMENT, The West Australian August 16, 2011, 11:56 am
The restructure of the Qantas Group is long overdue and essential for its long-term viability as an aviation business.And that is the key - because Qantas is no longer an airline, it is a business that seeks opportunities wherever they may be.
But with only 18 out of every 100 travellers in and out of Australia choosing what is the world’s best airline brand, the flying kangaroo is in more trouble than the A380 which suffered an engine explosion last November.
And the airline’s market share into Asia is even worse at a paltry 14 per cent.
Qantas chief executive Alan Joyce has announced a raft of changes with more to come in a five-year plan to turn the international operation around while tapping into the world’s fastest growing travel market - Asia.
The challenge for Mr Joyce however is not to make the changes or set up the airlines it is to take the staff with him on the journey.
If some of the more militant unions don’t have an epiphany on their stated hard line stance on job security then there is going to be serious turbulence and grief.
And circling Qantas are airline such as Singapore Airlines and Emirates with costs up to 20 per cent lower just waiting to lure more passengers.
But the staff are wary.
They have seen missed opportunities during the 1990s. Qantas the last major airline to put in-flight entertainment systems into economy class.
And despite the fact that Australian’s are the second tallest travellers and fly the longest distances Qantas has only recently installed premium economy - 20 years behind some airlines.
The staff has also witnessed the botched Airline Partners Australia buyout in 2007 that would have seen Qantas bankrupted if it had succeeded.
Unless Mr Joyce can convince the staff of his vision and secure their trust the airline as it is today is doomed and will go the way of Ansett, which collapsed 10 years ago next month.
That failure saw 16,000 people lose their jobs while unsecured creditors lost $3 billion.
Sobering, and tragic numbers, by any measure.