Our strategy is to build the Qantas Group’s competitive advantages and create long-term shareholder value by maximising the strength of our integrated portfolio of businesses and brands.
The breadth of the Group model – with Qantas, Jetstar and Qantas Loyalty – allows us to serve the widest range of customers, gives us greater resilience to external volatility, and enables us to pursue growth opportunities in a range of markets. Our dual brand strategy in domestic Australia is designed to segment and grow the market, maximising Group outcomes.
While we continue to focus on growing earnings from our core domestic and international operations, the Group is also pursuing growth through our investments in Jetstar-branded airlines in Asia and by leveraging our deep customer insights and brand strength for disruptive growth at Qantas Loyalty.
We are focused on driving a permanent shift in our cost base and competitive position across the Group through the Qantas Transformation program, with a targeted $2.1 billion of benefits to be delivered by the end of financial year 2017.
The three-year Qantas Transformation program, launched in December 2013, accelerated our existing change agenda. Our goal was not just to navigate tough short-term conditions, but to permanently increase Qantas’ productivity and competitiveness and embed a culture of transformation across the business.
By 30 June 2016 we had unlocked $1.66 billion in cumulative benefits and reduced net debt by more than $1 billion, achieving all scheduled program targets while lifting customer satisfaction to record levels. Transformation has been the driving force behind our financial turnaround – and it’s the key to our future success and growth.
The Group’s long-term target is to deliver Return on Invested Capital (ROIC) greater than our cost of capital through the cycle. To ensure this, we target average ROIC through the cycle of greater than 10 per cent.
Safety is always our first priority Image
For more information on the Qantas Group strategy, please see the 2015
presentation and video of the
FY15 Operating Segment EBIT Image
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