Qantas to Fly London, NYC Direct
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Jack Ma Hi-tech cars Here’s cheers THE AFR Building China’s New players, and out of Max Allen, Jill Dupleix: first global brand this world styling 2017 wine and food trends MAGAZINE Interview Angus Grigg Tony Davis Columns FINANCIALwww.afr.com | Friday 27 January 2017 $4 INCLUDES GST REVIEW ̈ New-generation jets may replace 747 jumbos ̈ Planning non-stop flights from Sydney to Europe and east coast US Qantas to fly London, NYC direct ●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●● Exclusive ●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●● Joe Aston Qantas is considering replacing its remaining Boeing 747 jumbos with new-generation jets capable of flying non-stop between Sydney and London or New York by 2022, a move that would introduce direct access from Australia’s east coast to the two global financial centres and spark a major reorganisation of the airline’s interna- tional network. In an exclusive interview with The Australian Financial Review Magazine, published today, Qantas chief execut- ive Alan Joyce has for the first time canvassed the Airbus A350-900ULR or Boeing’s 777-8 (or 777X) as a legitimate successor to the airline’s final six 747-400ERs loosely slated for retirement by 2022-23. ‘‘[From Sydney or Melbourne] they can go straight into New York, Boston and Washington DC, and that is a complete contextual redesign of our network right there,’’ Mr Joyce said. Qantas has already confirmed the exit of five 747s for eight new 787-900 Dreamliners being delivered between October this year and May 2019, which cannot fly those distances but will start direct Perth-London flights in March next year. Key players in Qantas’ remake: industrial designer Marc Newson, chef Neil Perry, CEO Alan Joyce and fashion designer Martin Grant at Sydney Airport. PHOTO: NIC WALKER ‘‘The question is: do the remaining [747s] get replaced by 787s or do they are more suitable for slot-constrained Investor consensus has been that Qantas management has been get replaced by 777-8s or A350s?’’ Mr global capitals like Beijing, Hong Kong, Qantas would continue switching 747s pressing both manufacturers to deliver ̈ Full story AFR Magazine | Inside Joyce said. Tokyo and London Heathrow. for 787s and only replace its younger its new ultra-long range planes ̈ Chanticleer Etihad to steer new He argued that while the Dreamliner Adecisiontoproceedwitha A380s with the A350 or 777X in the late certified to fly Sydney-London (17,000 route as CEO exits back page is perfect for lower-volume routes with multibillion-dollar order for the new- 2020s. Thus Mr Joyce’s updated think- kilometres) with and against ̈ Rear Window Aviation changes in no slot restrictions, citing Vancouver generation aircraft would require final ing is significant to both Seattle-based directional winds and with a payload of the wings back page and Santiago, the newer, larger models sign-off by the Qantas board. Boeing and Toulouse’s Airbus. Continued p2 Trump optimism may push 20,000 Dow higher Robo-advice to retirees: ScoMo The introduction of tax cuts by US helping propel the President Donald Trump and optim- Dow 9.5 per cent ism around consumption could spark a higher since the reckons it’s a super opportunity further rally in US markets, after the November 8 presi- Dow Jones Industrial Average burst dential election. through 20,000 points for the first time. Rising profits The Dow’s milestone marked a near- and an improving ●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●● Fleur Anderson The government is considering big eight-year bull market run on Wall global economy changes to Australia’s 500 privacy and Street that has been bolstered by helped tip the blue-chip index over the Treasurer Scott Morrison has secrecy laws, which could allow busi- investor optimism about the outlook historic level. endorsed ‘‘robo-advisers’’ offering nesses and the government to capitalise for the world’s largest economy and Mr ̈ Full report Companies p15 cheap automated superannuation on the ‘‘enormous untapped potential of Trump’s plans to slash taxes, gut regu- ̈ John Authers It’s fake news p27 advice as the next step in Australia’s Australia’s data’’ by giving customers lation and unleash a $US1 trillion ̈ Markets It got there - finally p28-29 financial industry, and has urged con- more control over their personal ($1.3 trillion) infrastructure package, ̈ Karen Maley Investors’ big bet p30 sumers to overcome their privacy fears information and giving greater access to about business and governments shar- ‘‘anonymous government-held data’’. ing personal data. His government was ‘‘keenly aware’’ As the Turnbull government contin- of the financial opportunities of data- Renewable targets ues to battle controversy over Centre- sharing, Mr Morrison said in his clearest unachievable: ERM Fresh faces link’s ‘‘robo-debt’’ letters, Mr Morrison response to date to the Productivity has been spruiking, to his international Commission’s proposed liberation of Exclusive |ThefounderofERM Hot new counterparts, the commercial and government and consumer data. Power, one of the country’s largest elec- wristwear economic opportunities offered by The Productivity Commission, tricity retailers, says Australia has no Life & Leisure automated services and sharing of con- which will deliver its final recommend- chance of achieving its Renewable Britain’s Chancellor of the Exchequer liftout sumer data. ations to the government in March, has Energy Target of 23 per cent by 2020, Philip Hammond with Scott Morrison. ‘‘One of the prime examples is robo- been overwhelmed with feedback from meaning customers will be forced to advice, which has the potential to offer businesses, agencies and individuals pay higher prices for no environmental financial advice to a wider cross- ple engage and prepare more fully for about the future use of consumers’ gain. Amid growing unrest from busi- section of the community,’’ Mr Mor- retirement.’’ data, receiving almost 350 formal sub- ness about the push towards clean rison told a G20 conference in Ger- Mr Morrison plans to encourage missions to its inquiry. energy, Trevor St Baker said the Turn- many. more robo-adviser start-ups in Austra- Mr Morrison said that while con- bull government might have to con- ‘‘In Australia, businesses are begin- lia by giving them greater scope to test cerns about consumers’ privacy were sider amending the legislated RET of ning to integrate robo-advice into the their services in the market without ‘‘understandable’’, it was important 33,000 gigawatt hours again. retirement savings system to help peo- facing the costs of regulatory licensing. Continued p7 ̈ News p3 AFRGA1 A001 2 Friday 27 January 2017 News The Australian Financial Review | www.afr.com AFR ●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●● ̈ Keep up with breaking stories at afr.com Contents Top stories World ●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●● 12 News Companies & Markets ●●●●●●●●● 15 Facebook moves to flush out fake news PageTwo Jennifer Hewett Street Talk ●●●●●●●●●●●●●●●●●●●●●●●●● 16 Facebook is overhauling the way its users are Financial Services ●●●●●●●●●●●●●●● 19 shown ‘‘trending’’ topics as part of its continuing Tables ●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●● 21 battle to stamp out fake news spread across the Financial Times ●●●●●●●●●●●●●●●●●● 27 social media platform. p9 ●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●● Markets ●●●●●●●●●●●●●●●●●●●●●●●●●●●●● 28 ●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●● [email protected] Property ●●●●●●●●●●●●●●●●●●●●●●●●●●●● 31 World Letters/Rear Window ●●●●●●●●●● 35 White House advances oil pipelines Features ●●●●●●●●●●●●●●●●●●●●●●●●●●●● 36 While US President Donald Trump works to Editorial & Opinion ●●●●●●●●●●●●● 38 advance two controversial oil pipelines – Dakota Chanticleer ●●●●●●●●●●●●●●●●●●●●●●●● 40 Access and Keystone XL–awar’sbeing fought in Japan sensitivities lost in translation Washington over a whole other set of lines: natural Companies index gas ones. p11 ●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●● ANZ Bank ●●●●●●●●●●●●●●●●●●●● 19 Financial Times The Japanese rightly pride themselves attempting to use the framework of the least temporarily, despite regular and May to release detail on Brexit plans on their sense of order, predictability TPP as the standard. That’s even increasing Chinese appearances in Bendigo Bank ●●●●●●●●●●●●● 19 Theresa May has bowed to pressure from Labour, and loyalty. though any prospect of agreement Japan’s declared territorial waters. CBA ●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●● 19 the Scottish nationalists and her own backbenchers They are also known for particularly between the parties remains an even That’s in part due to the patrolling to publish a white paper setting out the nuanced public statements. more protracted proposition. Japanese coast guard and Japanese Charter Hall ●●●●●●●●●●●●●●●● 31 government’s plans for Brexit in greater detail p27 But all of a sudden they are having to But while all that is deeply unsettling self-defence forces, but also because of ●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●● accept that their closest ally is for the Abe government, its