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Geoff Dixon, CEO, Qantas Airways

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Geoff Dixon, CEO, Qantas Airways A MAGAZINE FOR AIRLINE EXECUTIVES 2004 Issue No. 2 T a k i n g y o u r a i r l i n e t o n e w h e i g h t s AN ALLIED FRON T A conversation with … Geoff Dixon, CEO, Qantas Airways INSID E Air France and KLM form 4 Europe’s Largest Airline 18 The Evolution of Alliances A Conversation with oneworld, SkyTeam 26 and Star Alliance © 2009 Sabre Inc. All rights reserved. [email protected] An Allied Front A Conversation Photos courtesy of Qantas Airways With … Geoff Dixon, CEO Qantas Airways n the past few years, airlines around the world have increasingly I worked together to expand their reach and provide additional services for customers. From basic codeshare agreements through its more extensive airline association with oneworld, Qantas has formed relationships that enable it to increase revenues as well as customer service. ascend 37 An Allied Front A Conversation Photos courtesy of Qantas Airways With … Geoff Dixon, CEO Qantas Airways n the past few years, airlines around the world have increasingly I worked together to expand their reach and provide additional services for customers. From basic codeshare agreements through its more extensive airline association with oneworld, Qantas has formed relationships that enable it to increase revenues as well as customer service. ascend 37 industry and different operating environments? tive enhancements like e-ticketing and like, and global alliances have been a very A: This was really not as difficult as it might QuickCheck self-service kiosks as well as pro- effective mechanism for bringing airlines appear. By operating as a small, cohesive ducing cost savings and additional customer together in the interim. How the alliances group, oneworld is able to operate by consen- service benefits. respond as airlines begin to integrate their sus while striving for enhanced services and Q: one Photo courtesy of Qantas Airways How has the world alliance evolved activities more fully is one of the challenges customer benefits collectively. New members over the years? they will face. are unable to enter oneworld unless they can A: The oneworld alliance has grown from Q: Airlines also have relationships with meet all of the alliance’s deliverables immedi- an already strong base involving partners vendors, service providers, distribution ately, which offers a highly effective service with a clear understanding of how the partners. How important and strategic are guarantee. alliance would work, and this path has been those relationships? Q: What kind of standards and contractu- adhered to throughout its history. The A: All of Qantas’ business relationships are, al requirements are involved with forming alliance began with four airlines and has now of course, very important to us, and we try to an effective alliance? grown to eight. achieve mutually beneficial outcomes with all A: To become a member of oneworld, you Q: Where do you see the alliance going of our service providers and clients. must meet set standards and requirements. If in the future? Will the alliance expand Q: What advice would you give to airline you can’t, you are not admitted. This gives further? How do you think alliances will executives who are considering joining an oneworld very solid performance platforms. shape the future of the industry and serve alliance? Q: What role does technology play in as a possible foundation for consolidation? A: It is vital to adequately explore what integrating the alliance members? How A: China is an obvious area for expansion. alliance will suit their company’s objectives by important is it for partnering airlines to use There may be other opportunities else- analyzing the real substance of the alliance similar information technology? where. However, any new membership and ensuring this matches their individual A: It is not necessary to achieve complete must enhance the alliance before it will be goals. Alliances do deliver significant benefits, integration of members’ IT platforms, but IT accepted. but new members need to ensure their busi- is an important part of customer service deliv- Structurally, the airline industry is nesses are prepared to commit the resources As the world’s second oldest airline, Qantas’ perspective on how alliances have lenges you face with your fellow alliance ery and continues to be a strong focus of heading toward consolidation. However, the and time that alliances need to make them Qantas is no stranger to forming strategic impacted, and will continue to affect, his air- members? How are you resolving them? the alliance. Technology has produced defini- pace has been slower than many of us would truly effective. a alliances. In fact, as far back as 1931, Qantas line and the airline industry. A: The aviation sector as a whole is facing formed its first link — with Imperial Airways, a Question: As a founder of the rapid and sustained change and there are predecessor of British Airways — when it car- oneworld alliance, what led Qantas to join many challenges for the industry. External ried mail to Darwin as part of an experimental forces with other airlines? events including Sept. 11, severe acute respi- Australia-United Kingdom service. Answer: Entry into the oneworld ratory syndrome, Iraq, threats of terrorism, In recent years, Qantas has continued alliance followed naturally from Qantas’ high fuel prices, and the continuing impact and to leverage the benefits of strategic alliances. deepening bilateral relations with fellow threat of low-cost carriers are all significant In 1998, Qantas teamed with American oneworld founding members British Airways challenges to be faced both as individual air- Airlines, British Airways and Cathay Pacific and American Airlines. lines and collectively by alliance groups. Airways to launch the oneworld alliance, To meet Qantas’ aspirations as a global Airlines must be progressive and innovative which today also includes Iberia Líneas Aéreas airline, it was important to explore the oppor- to meet and overcome these challenges. A Photo courtesy of Qantas Airways de España, LAN, Finnair, Aer Lingus and 17 tunities offered by a global alliance with strong key objective is to increase efficiency and related regional carriers. Through the alliance, partners. reduce costs. Qantas provides its customers access to more Q: How have you been able to measure Q: In what ways are you integrated with than 575 destinations around the world, more the success you’ve gained by joining the the other oneworld carriers? Do you fore- than quadrupling the 138 destinations Qantas oneworld alliance? How has the oneworld see the alliance becoming more integrated offers alone. alliance strengthened Qantas? in the future? Qantas, recently named the best airline A: The oneworld alliance has become estab- A: Of all the alliance groups, oneworld has in the Asia/Pacific region at the 2004 OAG lished as the premium global alliance, and placed a lower priority on integration, prefer- Airline of the Year Awards, has also looked to Qantas has benefited from this through both ring multilateral solutions only when they add strengthen ties with its trans-Tasman counter- bilateral and multilateral partnership arrange- value and placing greater emphasis on bilater- part, Air New Zealand. ments under the oneworld umbrella. al and inter-carrier relationships. Geoff Dixon, who was named chief Q: Where do you believe your airline A key factor in the success of oneworld executive officer of Qantas in March 2001, would be today if it had not joined is the maintenance of members’ individual has been at the airline since 1994 and in his oneworld entities. The alliance remains a grouping of tenure has had responsibility for all commer- A: Clearly, Qantas would have looked at other eight successful airlines focused on growing cial activities, including worldwide sales and alliance opportunities. But we are very happy their own networks and meeting their cus- marketing, network development, revenue with the decision we made. The oneworld tomers’ requirements successfully. management, fleet planning, cabin crew, alliance has been good for Qantas and so, I Q: How difficult was it to form an alliance customer service, product development and might add, has Qantas for oneworld. involving carriers from different countries airline alliances. He recently discussed Q: What are some of the greatest chal- facing different government regulations 38 ascend industry and different operating environments? tive enhancements like e-ticketing and like, and global alliances have been a very A: This was really not as difficult as it might QuickCheck self-service kiosks as well as pro- effective mechanism for bringing airlines appear. By operating as a small, cohesive ducing cost savings and additional customer together in the interim. How the alliances group, oneworld is able to operate by consen- service benefits. respond as airlines begin to integrate their sus while striving for enhanced services and Q: one Photo courtesy of Qantas Airways How has the world alliance evolved activities more fully is one of the challenges customer benefits collectively. New members over the years? they will face. are unable to enter oneworld unless they can A: The oneworld alliance has grown from Q: Airlines also have relationships with meet all of the alliance’s deliverables immedi- an already strong base involving partners vendors, service providers, distribution ately, which offers a highly effective service with a clear understanding of how the partners. How important and strategic are guarantee. alliance would work, and this path has been those relationships? Q: What kind of standards and contractu- adhered to throughout its history. The A: All of Qantas’ business relationships are, al requirements are involved with forming alliance began with four airlines and has now of course, very important to us, and we try to an effective alliance? grown to eight. achieve mutually beneficial outcomes with all A: To become a member of oneworld, you Q: Where do you see the alliance going of our service providers and clients.
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