Geopolitical shifts and the rise of Asia
Responding to changes in the global economy and shifts in the geopolitical balance of power.
Few industries benefit more from international connectedness than aviation. That means that changes in the global economy and shifts in the geopolitical balance of power have a significant impact on the industry's development.
For airlines today, the dominant geopolitical trend shaping the future is the rise of Asia. Asia-Pacific is already the world's biggest aviation market. By 2035, it will be bigger than Europe and North America combined, with growth expected to continue at an increasing rate to 2060. To convert that potential into profitable growth, airlines need to build the right networks, attract the best people and forge strong partnerships across the region.
How Qantas is responding
We're taking a long view of Asia's potential, putting in place the foundations now to capitalise on long-term growth in demand, including for in-bound tourism to Australia.
- About half of the Qantas Group's international network is now dedicated to Asia, compared with 30 per cent in FY12. Singapore is our largest hub outside of Australia.
- Qantas Airways has restructured its network to focus on the business and premium leisure market between Australia and Asia, growing capacity and expanding strategic partnerships like the joint venture with China Eastern.
- Jetstar is opening up Australia-Asia and intra-Asia leisure travel markets through a combination of its Australian operations and associate airlines (Jetstar Japan, Jetstar Pacific in Vietnam and Jetstar Asia in Singapore) across the region.
- Our freight business is responding to strong trade ties by diversifying the range of goods it transports as demand for premium Australian products grows. In 2018, we launched more frequent freight services to Asia to account for growing demand for Australian produce. Across the Group, we're investing in Asian language skills, sales and marketing channels.
See how we are gaining access to high growth markets with Jetstar branded airlines across Asia.