Qantas separates domestic and international businesses

Photo by Tupungato/
Photo by Tupungato/

Qantas today announced a major restructuring of its airline business, including the separation of its domestic and international units.

As part of its controversial five-year transformation plan, which it launched in August 2011, Qantas International and Qantas Domestic – which are currently combined as ‘Qantas Airlines’ – will be formally separated and managed as two businesses. From 1 July 2012, each will have its own CEO and its own operational and commercial functions. The units’ financial results will also be reported separately.

Alan Joyce will continue to lead the Qantas Group as its CEO, while Simon Hickey, the current head of Qantas Frequent Flyer, will become CEO of Qantas International, and the existing Group Executive Operations, Lyell Strambi, will become CEO of Qantas Domestic.

“The restructure I announce today advances this essential programme of change. It recognises that the Qantas group is a true portfolio business,” said Joyce.

“Qantas International… is loss-making and does not deliver sustainable returns. However, we are committed to turning it around through the five-year strategy we announced last year, based on flying to global gateways, deeper alliances, smart investment in product and disciplined capital management.

“Formally separating the management of Qantas International and Qantas Domestic will ensure that we can independently run each business according to its specific priorities and market conditions,” Joyce added.

Qantas said that operationally, it will continue to be “business as usual for Qantas customers and employee”.

The latest round of restructuring follows yesterday’s announcement that Qantas will consolidate its heavy maintenance operations in Melbourne and Brisbane, in a move that will cost 500 jobs.

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