23 Jun 2011

Future of Qantas under cloud

5:16 pm on 23 June 2011

Despite the volcanic ash cloud lifting over Australia, the future of Qantas is still uncertain.

Chief executive Alan Joyce says the airline must change or face extinction.

Its international business is expected to loose $200 million this year, and Mr Joyce says the operations are performing so badly, it may move them overseas.

Mr Joyce says Qantas International has only achieved its required returns three times in the last 15 years - and the good years have not been good enough to offset the bad.

He believes the future lies in Asia, where where it is cheaper to operate, and where budget offshoot Jetstar has enjoyed considerable success.

Qantas will unveil plans for a restructure of the division in August.