Qantas CEO Star Dims as International Business Bleeds - Bloomberg:
"Qantas Airways Ltd. (QAN) Chief Executive Officer Alan Joyce promised last year that an alliance with Emirates would prove a “turning point” for the 93-year-old carrier. It isn’t working out.
Losses in Qantas’s international unit hit A$262 million ($234 million) in the six months ended December, the carrier said yesterday, wider than those over the preceding 12 months. Joyce yesterday abandoned a goal to turn the division profitable by next year, meaning the earliest the Sydney-based company is estimated to post a profit is in 2016.
Irish-born Joyce, 47, is cutting 5,000 jobs, canceling or deferring 50 plane deliveries, freezing pay and ending some overseas routes as he struggles to turn Qantas around. Success with this strategy is key for him to win the support he’s sought from Prime Minister Tony Abbott’s government as three foreign airlines help boost finances at Virgin Australia Holdings Ltd. (VAH)"
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