Qantas to split international and domestic operations
23 May 2012
Qantas Airways says it would split its international and domestic operations into two separate businesses from July - a day after it revealed plans to cut 500 engineering jobs in Victoria.
According to the airline, each business would have its own chief executive, and also report its financial results separately.
The executive team would likely undergo several changes with the restructuring to the airline's executive team, including the departure of Bruce Buchanan, chief of its low-cost arm, Jetstar.
Qantas shares were up 4 cents, or 2.8 per cent, to close at $1.47, outperforming a 1.2 per cent increase in the broader market.
The carrier described the revamp as part of a five-year turnaround plan for its struggling international division and the most extensive management reshuffle since Alan Joyce took over as chief executive of the carrier in November 2008.
"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 said in a statement.
"These measures give us the right structure to address the challenges and opportunities we face, and the right people," he said.
