Qantas is expected to emerge from the pandemic stronger than everCOVID has been fatal for many of its rivals, but Qantas is set to soar further.Qantas CEO Alan Joyce smiles and shakes hands on the last Wednesday in January 2020. Outside of China, the coronavirus has not yet claimed anyone.To establish a pilot school, he traveled nearly two hours north of Sydney.In the heat of the open hangar, he tells staff, students and politicians that he will soon fly the huge Airbus A380 or Boeing Dreamliners, which are the backbone of Australia's iconic long-haul airlines.Because the virus would cause havoc in global aviation several weeks later, it is not often mentioned.Joyce, however, is already focused on the struggle that lies ahead on the return trip to Qantas headquarters in the afternoon. He will do all he can to end the pandemic.This was an early glimpse at the determined, even ruthless approach Qantas took in its home market. It also almost intervened in the largest aviation crisis and was able to survive.Global losses on Covid-19 airlines are expected exceed US$174 billion by 2021. Qantas, however, has been profitable for half-ten years and is now one of the most financially secure carriers in the world.After March 2020, Qantas' stock rose 120 percent and its market capitalization climbed to A$8.9 million. Qantas claims that nett debt has reached its peak and that it will be able to make significant profits in the year ending March 2020.Qantas's miraculous recovery from a crisis that ended the lives of many of his peers is a tale of political hypocrisy and commercial opportunity.Joyce fully exploited Australia's remarkable feat of almost eliminating the Covid 19 flight subsidies.Joyce's springboard was Australia's closing of its international borders last March.Visitors were not only prohibited from entering the country, but citizens were also forbidden from leaving. Within months, Australians who love to travel and would normally fly off to Aspen or the Mediterranean began spending their money at home on a domestic holiday bonanza.Qantas, Australia's largest airline was undoubtedly one of the biggest beneficiaries.This year, the government began subsidizing 800,000.00 half-priced flights to boost tourism. In May Joyce stated that air travel to Australia is so popular that it was likely to surpass pre-Covid levels.Joyce, a former air travel planner, managed the largest expansion of Qantas' network in a decade. This included 45 pandemic routes.Sydney-Ballina is one of them. The city of Byron Bay is New South Wales' coastal city, also known as Hollywood.Qantas had not been in existence for 15 years prior to Covid's arrival from Sydney. The airliner and its low cost Jetstar operated up to 55 flights per week to meet the increasing demand from Australians.A Tuesday night flight from Sydney, Australia to Ballina demonstrates how Qantas' near-elimination Covid is working in favor of them.The 74-seat aircraft was completed in 80% for the 80-minute flight. This is a great benchmark for airlines.A rare victory over a virus has enabled the holiday boom, which has already killed almost 3,9 million people around the world.Australia has less than 1000 deaths, but only 150 active cases. Life has remained relatively normal.Qantas recovery cannot be attributed to self-containment. Australia's vast land mass is more than twice that of India, making flight between major cities the only viable way to travel. Plus, with only 26 million people, there are very few airlines competing.Joyce successfully argued against the remuneration of poorly managed companies after Qantas' closest rival Virgin Australia demanded government support just a few weeks before the crisis hit.Virgin went bankrupt in April of last year. It was insolvent with Qantas debts and without the support that supported carrier travels throughout Europe and the U.S.Bain Capital had saved Virgin two months earlier, but the buying company was still shrinking and relaunching the airline fleet with modest ambitions. Joyce quickly followed Virgin frequent flyers, the core of any airline, and offered to monitor their loyalty status by switching over to Qantas.These efforts have been fruitful. According to the Competition Regulatory Authority, Qantas' market share was 74% and 69% respectively in December and March. This is an increase of 61% from before the pandemic.According to data from the Department of Transportation for March, there is an undeniable level of dominance in the USA. American Airlines holds a 20% market share.Qantas estimates the pandemic has caused revenue losses of A$16 billion and a loss of more than A$2B in pretax income for the year ended June.Joyce, who was a university student in physics and mathematics, had to deploy his bare-bones budgeting skills as Jetstar's head. He created a total cost of A$15billion and cut 8,500 Qantas job.Qantas said in a statement that they were conscious of the need to make fundamental changes in order to sustain their business. We must ensure that we are able to repair and rehabilitate.Qantas shareholders saw record profits and received dividends, but it was difficult to justify more job cuts due to the profitability.The pandemic has made this more likely, but Qantas' bullish statements and the fact that Qantas is cutting thousands in jobs have put pressure on union leaders.Qantas also announced job cuts in May. They also announced a 2-year ban on international cabin crews and offered volunteer redundancy.He threatened to hire hundreds of Asian cockpit crew if Qantas pilots refused to agree to a new deal for ultra-long flights.Joyce's greatest test could be the Australian policy Qantas has so greatly benefited from. The U.S. and some parts of Europe have reopened to foreign travel. Australia is not in hurry.According to the government, the borders will likely remain closed until 2022. Public support is still strong and the rate of vaccinations slower than elsewhere. About a third of the group's income was generated by international businesses before Covid-19.Qantas created a three-year plan in June to get its finances back on track. It included raising A$1.4billion from institutional investors, and grounding all 12 A380 fleets for at least three consecutive years. Qantas anticipates that its cost-cutting programme will result in A$1 billion annually in savings starting June 2023.According to the plan, Qantas could emerge from Covid stronger than before and be able gain market share against rivals abroad that have been burdened by debt in the wake of the health crisis.
