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Qantas boss predicts airline will inevitably merge

Qantas boss predicts airline will inevitably merge

Qantas Airways Ltd. will inevitably merge with another major airline as part of a global restructure of the aviation industry, the company's chief executive officer said Friday.
Geoff Dixon, who retires from the helm of Australia's flagship carrier in November, said the world's 10th largest airline must become larger within a decade to remain competitive.
"Other airlines are starting to merge and we must be part of that," Dixon told Australian Broadcasting Corp. radio.
"We still are not big enough in five to 10 years to do it on our own. I believe it will be sooner rather than later," he added.
Singapore Airlines Ltd. has been named in the past as a potential suitor. Dixon said he was not looking at any rival in particular.
"I am not saying there is anybody out there at the moment," he said.
"All I am saying is that many airlines are now merging in situations where they probably would not have considered it three or four or even five years ago," he added.
Dixon's comments follow his Sydney-based airline posting on Thursday a 44 percent rise in annual net profit, despite a slowing Australian economy and high fuel costs.
Qantas recorded a net profit of 969 million Australian dollars (US$847 million) for the year ended June 30, up from A$673 million (US$588 million) the previous year. The result was slightly lower than market forecasts of A$1.02 billion (US$891 million).
Sales rose 7.5 percent to A$16.2 billion (US$14.2 billion) from A$15.1 billion (US$13.2 billion) a year ago.
In a statement Thursday, Dixon predicted fuel costs for the airline would rise by A$1.6 billion (US$1.4 billion) in the current financial year.
Dixon also acknowledged the recent spate of problems that have plagued the airline, including an explosion on board a Qantas jumbo jet over the South China Sea last month that forced an emergency landing in Manila.
Dixon will be replaced as chief executive by Alan Joyce, who currently heads Qantas' discount subsidiary Jetstar.


Updated : 2021-07-27 05:11 GMT+08:00