Australia’s Qantas to split business into two

[KK Lee 5]

Australia’s Qantas to split business into two

May 22, 2012

SYDNEY, May 22 — Australia’s top airline, Qantas Airways, said today its international and domestic business will be managed as separate businesses with their own chief executive, with earnings to be reported separately from July 1.

Qantas said in a stock exchange filing that the changes were part of a five-year turnaround plan aimed at shrinking costs and getting the loss-making international operations into profit.

“Qantas International, a great airline with a rich history, is loss-making and does not deliver sustainable returns,” chief executive Alan Joyce said.

“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.”

Weak demand and high fuel prices are taking a toll on airline profits pushing airlines across the world to cut costs and delay capital expenditure.

The business separation comes as Joyce struggles to find a partner to float an Asian premium airline to take advantage of lower costs with some analyst saying Qantas has given up that option for now. In March it ended talks with Malaysia Airlines .

Qantas, which is emerging from a bruising dispute with unions, yesterday said it planned to cut 500 jobs on top a similar number flagged in February to save up to A$100 million (RM307.8 million) annually.

It is consolidating engineering, maintenance and ground operation function and also plans to sell some catering centres. It has also cut A$900 million in capital expenditure.

Qantas named Simon Hickey, CEO for its frequent flyer programme, as CEO of Qantas International and Lyell Strambi, group executive for airline operations, as CEO for domestic operations.

Qantas announced an underlying profit before tax of A$552 million in the 2010-11 financial year, while the international business lost more than A$200 million. — Reuters

http://www.themalaysianinsider.com/business/article/australias-qantas-to-split-business-into-two/

[Mohd Suhaimi Fariz 2]

Qantas' version of the aborted Sapphire/MAS plan?

[CV Thian 0]

In related news:

 

Jetstar CEO Bruce Buchanan departs the airline and joins Vanessa Megan

 

Announced 22 May 2012

 

 

Vanessa Megan, an Australian organic skincare company, is thrilled to welcome Bruce Buchanan, Group Chief Executive Officer of Jetstar, into the fold. As one of the youngest and most revered CEO’s in Australia today, Bruce will bring a wealth of business experience to Vanessa Megan and will make a major and positive impact on its future.

 

Vanessa Megan has spent the past six months on the product’s readiness to launch into key markets in Asia including China, Korea, Hong Kong and Japan. Bruce’s experience at Jetstar, successfully taking an Australian business into the Pan-Asian region will be invaluable for Vanessa Megan in taking this great Australian product to the world.

 

“I am excited to be able to help another business, Vanessa Megan, realise its potential through-out Asia. I have used the product over the last twelve months and have fallen in love with the product and brand. When I drink wine (a hazard of building a business involving many partners) I can react with a rash around my eyes, which I used to treat with a steroid cream – I have now happily replaced this with the natural eye cream from Vanessa Megan. I know that once you have the opportunity to try Vanessa Megan, you will also fall in love with this product and brand. It’s a fantastic business that I am very proud to be part of”, said Bruce.

 

“Having spent significant time in Asia, I recognize the wonderful opportunity Australia has to fulfill a strong demand for a clean and green product. Australia is quite unique in the way it is perceived around the world and Vanessa Megan has tremendous potential to meet the needs of an increased awareness by consumers about the benefits of using products from a pure environment like ours” added Bruce.

 

Vanessa Megan produces skincare for Women, Men, Home, Pregnancy & Baby with currently 56 lines in the range. The products are manufactured by hand in Sydney, Australia using only natural and organic ingredients sourced from Australia (wherever possible). It is a premium skincare range, appealing to women and men who are accustomed to buying high end department store brands but who now want products they know are also completely safe. Vanessa Megan is organic food for skin, built on the belief that you ‘should never put anything on your skin you wouldn’t eat’ – as the skin is the body’s largest organ and will absorb anything you put on it into the bloodstream so should be safe. Vanessa Megan believes skincare must be beautiful, must be natural and absolutely must work. The range is presented in amber glass bottles for shelf-life longevity, recyclability and beauty. Vanessa Megan is organic food for your skin.

 

Recently Bruce and his wife Elizabeth Buchanan invested in the business to take a 50% ownership in partnership with Vanessa Gray who began developing the range more than 12 years ago.

 

www.vanessamegan.com