Qantas, the Australian airline, is to form a strategic alliance with American Airlines and is to buy up to 75 Boeing 737 aircraft ordered by the US carrier to help it meet demand in the domestic market.
The decision, announced on Sunday, is a blow to Airbus which had hoped Qantas, one of only a handful of airlines around the world that is expanding, would choose its A320 rather than the next-generation Boeing 737-800.
Read MoreMELBOURNE, Oct 24 AAP – Australia Post today warned the present economic climate would make it difficult to maintain its current profitability as it handed its government owners $274.5 million in dividends.
According to its annual report tabled in Federal parliament today, Australia Post delivered a net profit of $274.5 million in the year to June 30, 2001, up six per cent on the previous year.
Its total payout to the Commonwealth jumped 76 per cent and comprised an ordinary dividend of $164.7 million and a special dividend of $109.8 million.
Australia Post chairman Linda Nicholls said the result was a major achievement in the face of a difficult trading environment and economic downturn.
Read MoreWho is Australia’s most successful book publisher? Or the retailer that attracts about one million customers a day? For most, Australia Post would not be the first name that springs to mind.
Innovation and cutting edge ideas are not usually associated with an organisation seen by many as just a monopoly-guaranteed mail delivery service. But by coming in at number one in the reputation index, Australia Post has outperformed some of Australia’s biggest and most successful companies and multinationals.
Back in the early 1990s, the doomsayers were warning that email and the Internet would chew away at its core business, that nifty express operators with inexpensive tailored distribution networks would target areas not protected by monopoly guarantee. Volumes would shrink, the best parts of the business would be delivered into the hands of competitors and post offices would shut down.
Instead, the reverse has happened. Since its corporatisation in 1989, Australia Post has increased its pre-tax profits six-fold to $391.9 million in 1999/00. Another increase is expected when it reports its annual profit this week. In 1990, its proportion of wages to revenue was 67 per cent. It is now 44 per cent.
Read MoreQantas, the Australian airline, on Thursday announced a A$1.5bn (US$750m) aircraft purchase programme, making Qantas as one of the few carriers expanding in a stricken world airline industry. The purchases would be partially funded by a A$300m share issue, with details yet to be finalised. BA would not participate in the issue, a policy which would slightly dilute its Qantas stake.
Read MoreThe postal industry’s push for greater competition took a step backwards yesterday when the Labor Party, with only partial objection from the Coalition, promised to expand the governmental functions of Australia Post. The Opposition’s spokeswoman for regional services, Senator Sue Mackay, indicated the postal market would be unlikely to open up under a Labor Government, signing a pledge at a Hobart post office against any deregulation of Australia Post.
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