Buchanan steps down as Qantas splits business

Jetstar head Bruce Buchanan steps down as Qantas restructures business

As part of the next phase of its five year transformation plan, the Qantas Group has announced it will divide its Qantas International and Domestic businesses as well as adjust its executive team to manage the “two distinct businesses”.

Announced this morning, Qantas chief executive Alan Joyce said both Qantas International and Qantas Domestic will continue to operate under Mr Joyce, but will now also operate with individual chief executives and commercial functions.

Current Qantas Frequent Flyer chief executive Simon Hickey will step into the role of heading Qantas International while Qantas Airlines Operations group executive Lyell Strambi will take the lead at Qantas Domestic.

Executive changes were also unveiled for the airline’s subsidiary, Jetstar with Group chief executive Bruce Buchanan, who after nine years with the Qantas Group announced he will step down from the head role to explore new opportunities.

Remaining for the next six months to assist with the transition, Mr Buchanan will be replaced by current group executive, strategy and technology Jayne Hrdlicka.

Group CEO Mr Joyce said executive decisions and the airline division was essential as both “Qantas Domestic and Qantas International face very different situations”.

“Qantas International, a great airline with a rich history, is loss-making and does not deliver sustainable returns,” Mr Joyce explained.

“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.”

Other changes to management will see former Qantas new international strategy group executive Lesley Grant step into the role of Qantas Frequent Flyer chief executive while Jon Scriven will now stand as group executive, people and office chief executive, Brett Johnson has accepted the role of general counsel and Gareth Evans steps in as chief financial officer.

Meanwhile, current group executive commercial and freight, Rob Gurney has announced his departure from the airline after almost 14 years with the company.

“Operationally, it will be business as usual for Qantas customers and employees,” Mr Joyce added.

“We will be carefully working through the details of the separation of Qantas International and Qantas Domestic over the next few months.”

In what appears to be a busy week for the airline, Qantas announced yesterday it would cut up to 500 engineers as it consolidates its maintenance facilities across Australia.
Source = e-Travel Blackboard: N.J
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