Qantas Faces a Tough Recovery in a Changing Global Market, says OAG
OAG January FACTS
Luton, UK, 6 January 2014: Australian airline Qantas will continue to face challenging times in the short-term, due to the weakening Australian economic and aviation markets, but new alliances may prove strategically sound, according to the latest research from OAG, the market leader in aviation intelligence.
OAG’s FACTS (Frequency and Capacity Trend Statistics) report for January 2014 shows the state of the Australian domestic and international markets. In December 2013, Qantas issued an unexpected profit warning and announced 1,000 planned job cuts, citing tougher competition and a reduction in demand as the main reasons. According to OAG, the changing Australian aviation market provides a difficult platform from which Qantas can regain a market lead.
John Grant, executive vice president, OAG, says: “Over the past decade Australia’s economy has weathered the global economic storm, thanks to China’s demand for Australia’s natural resources. However, the economic slowdown in China has led to a reduced demand for commodities, which has pushed prices down, affecting the Australian economy as a whole. The softening of the economy is unlikely to lead to a growth in strong demand in the coming months.”
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