- Alan Joyce announces ‘best results in Qantas history’
- Dreamliner flights open for bookings in December
- Airline promises best in class interiors
Bookings for the first Qantas Dreamliner flights are to open before Christmas.
The airline says seats will initially be made available on existing services within the carrier’s network,and new international destinations will be added shortly afterwards.
Qantas is set to take delivery of the first of eight B787-9 aircraft in late 2017 and says it is working with “a team of world-class designers” on the interiors for its forthcoming Boeing Dreamliner aircraft, with the aim of providing “best-in-class standards”.
It comes as Qantas CE0, the Tallaght-born Alan Joyce claims: the best result in the 95-year history of Qantas – and the best result in Australian aviation history, full stop“.
Qantas announced underlying profits before tax of $1.53bn for the 12 months June 30, 2016 – the best result in Qantas’ 95-year history and up 57 per cent on the previous year.
The airline said that the result meant it could “resume dividend payments, reward 25,000 EBA-covered employees with a one-off cash bonus, and continue investment for customers, including extending wi-fi to Qantas’ regional and international fleets and finalising the network and customer experience for the Qantas Dreamliner”.
Two-thirds of earnings came from domestic operations, up 20pc, and just one-third from the more volatile international sector, which nearly doubled earnings year on year, thanks to improvements in fleet flexibility. Qantas’ shares have almost tripled in price since the transformation programme was launched in February 2014. Alan Joyce claims the strategy has “unlocked $1.66bn in permanent cost and revenue benefits” and is now on course to exceed the $2bn savings target.
Qantas is paying a dividend for the first time in seven years at 7¢, with the prospect of more to come. The dividend is included in a further $500m return of surplus capital to shareholders, on top of more than 1bn dollars already fed back in the past 12 months through a capital return and share buy-back. Some of the benefits of cost-cutting will be used to compensate the employees who have endured pay freezes during the restructure: some 25,000 people will get bonuses of $2500 or $3000.
The Sydney Morning Herald, one of Alan Joyce’s fiercest critics in the past as he steered Qantas through a lockout in 2011, a restructure involving 5000 job losses, a pay freeze for employees and a controversial call for government support editorialised: “Alan Joyce has brought home a record-breaking profit result – $1.53bn before tax, up 60pc per cent on last year. He has been vindicated. We salute Mr Joyce on the podium today for what he is proudly spruiking. Qantas has succeeded in growing its margins in one of the most competitive, cut-throat industries of all. It has narrowed the gap between its costs and those of its chief competitor, Virgin. Old fleet have been retired and new craft commissioned. By Christmas, we’ll be able to buy tickets on the fuel efficient 787 Dreamliner, which is touted as a game changer: lower carbon emissions, quieter and even less jet lag compared with older craft due to better air quality in the cabin. Faster Wi-Fi is coming, too, with plans to test it in true Aussie style by live streaming the cricket on board over summer. Mr Joyce deserves credit for courage under fire in remaking Qantas to be fitter for the future.
Alan Joyce said: “Throughout our transformation we’ve invested in the areas that matter most to our customers. We’ve renewed our aircraft, lounges, technology and the training we provide for our people, who’ve done a phenomenal job to earn record customer satisfaction. Today’s result means we can build on those investments, with some really exciting projects in the pipeline to make the experience of flying with Qantas even better. Our plans for the Qantas Dreamliner, in particular, will set new standards for the industry. The record performance is a 57pc improvement on financial year 2015. It means Qantas can resume dividend payments, reward 25,000 EBA-covered employees with a one-off cash bonus and continue investment for customers, including extending wi-fi to Qantas’ regional and international fleets and finalising the network and customer experience for the Qantas Dreamliner.
