Qantas to expand international unit after Joyce?s turnaround

The Australian carrier ditched many unprofitable long-haul flights in favour of alliances with Emirates, China Eastern Airlines, American Airlines Qantas Airways Ltd. plans to expand its international business after a three-year restructuring effort by Chief Executive Officer Alan Joyce helped deliver record profits for the Australian carrier. Under Joyce, the Sydney-based carrier ditched many unprofitable long-haul flights in favour of alliances with Emirates, China Eastern Airlines Corp. and American Airlines Group Inc. With the turnaround yielding profits and the airline reinstating dividends, Qantas is gradually expanding its international business. Revenue from the division increased in each of the past two fiscal years, accounting for 29 per cent of the total. One key area of growth internationally is China. Last year, the Chinese overtook New Zealanders as the No. 1 tourists to Australia. To further fuel that, in December, Australia?s government announced an agreement with China to remove all capacity restrictions between the two nations. This year, Qantas will receive the first of its eight Boeing Co. Dreamliners and in 2018 will start the world?s first direct flights between Perth and London, a 17-hour non-stop flight. Joyce has said if he can turn a profit from the first few Dreamliners, he?d like to order the remaining 45 that Qantas has options and purchase rights to buy. Joyce, who took the top post in 2008, said he intends to continue with the airline. Courtesy: GulfNews.com

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