Qantas in low cost drive

16th Mar 2007

Qantas said today that the granting of rights for
Qatar Airways to operate up to double daily services to Australia
reinforced the need for Qantas to continue to restructure and lower its
cost base.

The Chief Executive Officer of Qantas, Mr Geoff Dixon, said Qantas would be
competing with three government-owned Middle Eastern carriers - Qatar,
Emirates and Etihad - on routes between Australia and the UK and Europe.

“Around 20 airlines currently already fly these routes over a range of
hubs, and with yet more capacity coming into the market, Qantas will have
no option but to achieve further cost savings if it is to remain
competitive,” Mr Dixon said.

“This is something that some unions, who have been calling for further
guarantees in relation to the Airline Partners Australia bid for Qantas,
need to realise.

“The reality is that whatever its ownership structure, Qantas must change,
and will continue to change, to ensure it remains successful.”




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