Qantas’ restructure has given rise to states that are ready for battle

News that Qantas will be taking inventory of its assets around Australia has state governments jockeying for first place, with the national airline’s headquarters possibly an open question.

Currently the airline operates facilities in multiple states – such as flight simulators and head offices in Sydney, Jetstar administrative spaces in Melbourne, and heavy maintenance spaces in Brisbane.

The airline stated that it is currently investigating ways to consolidate its offices, maintenance facilities, and other services in one state. This would reduce the $40M annually spent on office space leased.

Victoria and NSW are already competing for the top two spots.

Gladys Berejiklian is the Premier of NSW. She stated that they are keen on increasing employment in New South Wales.

One option is to establish a campus at Western Sydney Airport. This would be a benefit to the 10.000 Qantas workers currently working in NSW.

Victoria has however also joined the fray.

Premier Daniel Andrews stated that there are significant prospects for Melbourne.

“I had an extremely productive discussion with Alan Joyce, Qantas CEO, last night.”

Qantas stated it does not intend to relocate any Australian offices offshore and that the property review does not increase the number of job losses announced earlier in the year.

Vanessa Hudson, Qantas Chief Financial Officer, stated that COVID will continue its impact on the company. Hudson stated that “we’ll be much smaller then most airlines for a while.”

“We are looking to improve efficiency across the organisation, including our $40M annual spending on leased office space.

“Aside simply calculating how much space we have, there are also options to consolidate facilities and unlock economies-of scale.”

Ms Hudson stated that the Group would look into the Western Sydney Airport. She also mentioned the possibility to have a Qantas campus that is “all-purpose”.

Ms Hudson stated, “Most activities and facilities in our company are anchored on the airports where we fly. However, any thing that can be moved without affecting the operations of our customers or our operations is eligible for review.

“We will also include the new Western Sydney Airport in our thinking, given the opportunities this greenfield project provides.

“This is about setting Qantas Group up for the long-term, and recovering from the COVID crises. We are open to the outcome.

Mascot’s 49,000-square-metre property is currently being leased by the Qantas Group for its head office.

Colliers International was appointed as subleaser for approximately 25,000 square metres of excess office space located in Mascot, Melbourne CBD and Hobart. This will assist with the first phase.

The October expiration date of the lease for a Sydney CBD office measuring approximately 230 sqm will result in the lease not being renewed.

Qantas was established on 20/20. All operations were based in Winton (Queensland).

Qantas moved to Brisbane ten year later, as the airline grew.

Qantas moved to Sydney’s CBD shortly after the Second World War in 1938.

It was moved from Sydney to Mascot in the 1990s, to increase its floor space, and to be close to Sydney’s international Airport Kingsford Smith.

This website is intended to provide general information only and not to be a source or financial advice. This information has not been evaluated in relation to your personal financial goals, financial status, or needs. Before taking any action based solely on your financial situation, objectives and goals, it is important that you carefully review the contents of this website.