DJ Qantas CEO Geoff Dixon's Strategies To Be Continued - Joyce28/07/2008 03:02PM AEST
MELBOURNE (Dow Jones)--Qantas Airways Ltd.'s (QAN.AU) new chief executive-elect, Alan Joyce, Monday said he plans to continue the strategies forged by current boss Geoff Dixon.
"This is a change of baton," Joyce, the current head of Qantas' budget offshoot Jetstar, said at a media briefing.
"There'll be a continuation of a lot of the strategies that Geoff has employed and particularly the two brands strategy and the segmentation of the business which I think are important for our future."
Joyce was anointed earlier Monday as Dixon's successor and will take up the role after the company's annual shareholder meeting on Nov. 28. Dixon, who has led the company since 2000, will stay on in a consultancy role until March 2009.
Asked about the likelihood of increased consolidation in the aviation industry given the effect of soaring jet fuel prices, Dixon told the briefing he believes strongly in consolidation.
"I think there will be consolidation at a much more rapid pace," Dixon said. "And personally, and I'm on my way out...I do not believe that Qantas will not, someway or another, consolidate with some other airline some time in the future."
Joyce said he agreed that if the current high fuel price continued a lot of airlines won't be economic as stand alone entities.
"I think Qantas will keep an eye out for opportunities," Joyce said.
Commenting on trade, Dixon said Qantas was "doing better" than he would've thought given the fuel prices and turmoil in financial markets.
"We're trading pretty well," Dixon said. "We're still pretty confident of the future but it's difficult times."