Qantas looks to China for future growth
Banking on its economic muscle and its growing list of millionaires, Qantas Airways trains its sight to China where its future growth in the Asia Pacific region will be anchored, according to company chief executive Alan Joyce.
Flushed with disposable cash and recently assumed the post as the second biggest economy of the world, surpassing Japan, China, said Joyce, promises a rich pasture for Qantas' operation in the lucrative region.
He added that the country brandishes the undeniable reality that it is the fastest growing aviation market in this side of the world.
Speaking at the Australia Pacific Aviation Outlook Summit held in Sydney on Wednesday, the Qantas chief expressed confidence that more growth is forthcoming for the airline yet its current crop of employees must also embrace necessary changes in order to avails of such benefits.
Joyce specifically scored union leader, who he described as 'out of touch', for being adamant on rejecting cost adjustments on Qantas, which he said is currently higher by at least 25 percent over its nearest rival airlines in the region.
He stressed that everyone in Qantas needs to realise that globalisation has been around for a long time and will stay on, and adapting on its mechanics is hardly optional, especially in a market where players are bent on defeating its competitors.
Joyce was quoted by The West Australian as saying that "globalisation continues to change our world in profound ways and it is still changing the ways we work, consume and engage, and it is still driving relentless competition."
Pressing on his argument, the Qantas boss said that at present, China is home seven of the 20 busiest airports in the world and over the next decade, the country will have close to 3 billion inhabitants, making it a natural magnet for all sorts of business opportunities including the aviation operations.
Qantas said over the next 20 years, China will have established more than 200 world-class airport facilities and for the company to get a fair share of that booming market, its needs to institute notable adjustments, Joyce stressed.
Joyce believes that Qantas holds some sort of an advantage over its rivals as he noted recent research findings pointed to the likelihood that moneyed Chinese travellers would want to ride on airlines that are attached to prestige and safety features.
Add to that is the inside track now enjoyed by Qantas subsidiary, Jetstar, which Joyce said is now the biggest budget airline operating in the Asia-Pacific region.