AsiaPulse
Tuesday October 28, 11:12 AM AEST
Australian Airlines CEO Laments Poor First Year
SYDNEY, Oct 28 Asia Pulse - Australian Airlines chief executive Andrea Staines admits the past year has not been an ideal one to launch a leisure-based carrier in the Asia Pacific region.
But as the low-cost Qantas international subsidiary celebrated its first birthday Monday, Ms Staines, newly appointed to the CEO post, said things were back on track.
"As you can imagine, it was probably the worst year in aviation history to start an airline," Ms Staines told AAP Monday.
"But on the upside, we've learnt a lot and already the passenger levels have mostly returned post-SARS. We're back making money and budgeting to make a profit this year."
Severe Acute Respiratory Syndrome (SARS) decimated the airline industry early in 2003, with Qantas reporting in May that all international routes had been affected.
In particular, the effects of the epidemic hit Asia and Europe, with Qantas bookings to Hong Kong down 64 per cent and to Japan down 30 per cent.
Qantas chief executive Geoff Dixon said in August that Australian Airlines would return to profitability by September, after losing about A$15 million (US$10.55 million) since beginning flights in March.
"Australian's timing was just impeccable," Mr Dixon said at the time.
"I mean we started an airline on leisure routes about the day the SARS pandemic started. Obviously it got knocked around."
But Ms Staines said Monday the airline was profitable once again and was looking to move operations into China and India, in particular Shanghai and Mumbai.
The airline today announced the inclusion of a fifth Boeing 767-300 aircraft from October and plans for a sixth in about a year's time.
Australian will incorporate an extra weekly service to Bali and the Malaysian destination Sabah, and will soon be operating 50 flights each week.
ASIA PULSE
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