Jun 26, 2017 Last Updated 10:15 AM, Jun 26, 2017

New Entry From the Editor :

Glencore hits back with second counter offer for Rio Tinto’s Hunter Valley coal asset

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Bega Cheese launches $160m capital raise

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Australia Post reports $222 million loss

AusBN – Australia’s national postal service has reported its first full-year profit loss in more than 30 years.

Australia Post CEO Ahmed Fahour attributed the $222 million loss to a “challenging year” in which people continued to send fewer letters and the mail industry continued to evolve.

Letter volumes fell by 7.3% in 2014/15 whereas parcels, which made up more than half of the company’s $6.37 billion revenue, rose 3.6%.

Fahour said the company was investing in infrastructure that would help it adapt to the future of mail by becoming “a more eCommerce-centric organisation”.

This follows the CEO’s announcement in June that Australia Post would need to cut 1,900 jobs over the next three years to cope with the decline of letters.

Around 2,000 letters workers have been lost since 2011, but 4,400 have been retrained to work in growing areas of the business, such as parcels.

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Qantas to share out $975m profit

AusBN – Qantas made $975 million underlying profit in financial year 2014-15 and plans to share the spoils with its shareholders and staff.

It marks an amazing turnaround since last year, when the airline posted its worst-ever loss of $2.8 billion.

Every segment of the group did well this year, with Qantas Domestic making a profit of $480 million, Qantas International $267 million and budget brand Jetstar $230 million.

From November, shareholders will receive their first dividends in seven years, equivalent to 23 cents per share.

Qantas will reward its employees who have endured an 18-month pay freeze with $90 million worth of bonuses.

The airline has also ordered eight new 787-9 Dreamliner aircrafts to replace five older Boeing 747s.

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AirAsia X launches Sydney-Bali flights

AusBN – Indonesian airline AirAsia X has announced that it will launch five weekly direct flights from Sydney to Bali in October.

The move follows competitor Virgin Australia’s decision to switch its flights from Melbourne, Adelaide and Perth to Bali to low-cost arm Tigerair Australia in a bid to return its international operations to profitability.

Virgin will still fly to Bali from Sydney and Brisbane, but the company indicated that these too could be switched over to its budget subsidiary in the future.

With introductory one-way fares from Sydney to Bali for just $119 economy and $399 for premium flat-bed seats, AirAsia X is offering consumers an attractive alternative.

It will also be able to take more passengers than Virgin, with its A330-300 aircraft holding 377 seats compared with Virgin’s 176-seat Boeing 737 aircraft.

Indonesia AirAsia X CEO Dendy Kurniawan said: “At the end of the day, competition is going to benefit both the passengers and the players.

“Passengers… will get the best value. But we see in the markets with tough competition, it will give spirit for us to increase and enhance our services and make it more excellent and to be market leaders on that route.”

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