Commodities

Qantas to keep headquarters in Sydney after property review

Credit: REUTERS/Destination NSW

Qantas Airways Ltd said on Thursday it would keep its corporate headquarters in Sydney and low-cost arm Jetstar would retain its head office in Melbourne after reviewing its property portfolio in an effort to cut costs during the pandemic.

SYDNEY, May 6 (Reuters) - Qantas Airways Ltd QAN.AX said on Thursday it would keep its corporate headquarters in Sydney and low-cost arm Jetstar would retain its head office in Melbourne after reviewing its property portfolio in an effort to cut costs during the pandemic.

It will make some smaller moves such as Jetstar relocating some heavy maintenance on its Airbus A320 fleet from Singapore to Brisbane as part of a trial in 2021, with the potential for this to be extended. Qantas and Jetstar will also expand their maintenance operations in Melbourne.

Qantas had gone to state governments asking for financial incentives to maintain or shift the location of its headquarters or other operations to help it weather an A$11 billion ($8.52 billion) fall in revenue due to the decline in travel during the pandemic.

The review was launched after Virgin Australia last year secured A$200 million from the Queensland government to maintain its headquarters in Brisbane when it emerged from voluntary administration.

"Moving one or both of our headquarters was always a live option and there were times in the process where that seemed to be the most likely outcome," Qantas Chief Executive Alan Joyce said in a statement.

"Ultimately, once the final offers were assessed on a like-for-like basis, the set of decisions we made was the most beneficial to the Group overall," he said.

Qantas said the total value of government incentives will roll out over multiple years and will remain commercial in confidence.

(Reporting by Jamie Freed; Editing by David Gregorio)

((Jamie.Freed@thomsonreuters.com;))

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