- Australian carrier Qantas (QAN) continues to save money in the face of the COVID-19 crisis, with the airline now considering moving its headquarters out of Sydney
- Qantas has operated out of the headquarters for over 20 years, but says consolidation of its non-aviation properties is on the table
- Moving the 49,000 square metre head office is at the forefront of the carrier’s to-do-list, which is part of a $40 million annual spend on office spaces
- State leaders across New South Wales, Queensland, Victoria, and South Australia have all been in contact with Qantas boss Alan Joyce about opportunities
- Qantas representatives said they will keep an open mind, while options may include staying in Sydney under a cheaper lease
- Qantas shares are up 0.89 per cent at market open, priced at $3.98 per share
Cost-cutting at Qantas (QAN) continues, with the Australian icon now announcing it may move its headquarters out of Sydney.
The national carrier says it is exploring the idea through a thorough review of its overheads and a plan to cut costs due to the ongoing difficulty of COVID-19.
Particularly, the company has said its ‘non-aviation facilities’, such as the 49,000 square metre head office in Mascot Sydney, were under the microscope. The airline has operated out of the property for over 20 years.
“Like most airlines, the ongoing impact of COVID means we’ll be a much smaller company for a while,” Qantas Chief Financial Officer, Vanessa Hudson, said on Tuesday.
“We’re looking right across the organisation for efficiencies, including our $40 million annual spend on leased office space,” she continued.
“As well as simply rightsizing the amount of space we have, there are opportunities to consolidate some facilities and unlock economies of scale,” the CFO stated.
Qantas also said it will consider moving subsidiary Jetstar’s head office, currently situated in Melbourne Victoria.
Vanessa said consolidating both the Qantas and Jetstar locations was a possible outcome.
“Most of our activities and facilities are anchored to the airports we fly to, but anything that can reasonably move without impacting our operations or customers is on the table as part of this review,” she said.
State leaders rally for Qantas boss’ attention
Government officials from New South Wales, Victoria, Queensland, and South Australia have all had conversations with Qantas about the move.
The carrier has reiterated it will not move its headquarters out of Australia.
In the meantime, state representatives have been firm about protecting jobs within their jurisdiction.
“Obviously our focus is on jobs,” NSW Premier, Gladys Berejiklian, said on Tuesday.
Berejiklian has reportedly been in direct contact with Qantas boss Alan Joyce about the news, as the state is currently home to nearly 10,000 Qantas jobs.
“We’re really keen to make sure we boost jobs as much as possible throughout NSW,” she added.
Victorian Premier Daniel Andrews also spoke openly this week about his stance on the move.
“As I understand it, [Qantas has] some heavy maintenance jobs,” he said.
“They’ve got some head office jobs. All of those jobs are essentially up for grabs and we’ll be working very hard to make sure that Victoria puts a high-quality bid,” the Premier continued.
“We have undeniable strengths when it comes to engineering and technical capacity, and a training system to continue to push those people through and make sure that we’ve got the very best of skills,” he stated.
Qantas’ Vanessa Hudson says the carrier will keep an open mind about any possible outcome.
“This is about setting the Qantas Group up for the long term as well as recovering from the COVID crisis,” she said.
“It’s possible that our HQ stays where it is but becomes a lot smaller, and other facilities consolidate elsewhere. Or we could wind up with a single, all-purpose campus that brings together many different parts of the group,” the CFO continued.
“These are all options we need to consider as we look to the future,” she concluded.
Qantas shares are up 0.89 per cent at market open, priced at $3.98 per share at 10:29 am AEST.