Hellsbells
15th Feb 2006, 21:07
Australian Fin Review - 16.02.06
Radical restructure for Qantas
Feb 16
James Hall
Qantas Airways is to unveil a radical restructure of its top executive ranks and reporting channels today, slashing the number of people reporting to chief executive Geoff Dixon and paving the way for his succession.
It will result in the Qantas group being split into two distinct flying divisions: Qantas and Jetstar.
The group is expected to report a $100 million slump in interim net profit to about $360 million today because of high fuel and restructuring costs.
The new Qantas division will be run by long-serving executive general manager of Qantas Airlines John Borghetti and Jetstar's growing number of airlines is to be run by Jetstar chief Alan Joyce.
Alongside chief financial officer Peter Gregg, Mr Joyce and Mr Borghetti are considered to be leading the race to succeed Mr Dixon, who has hinted he might stay on as Qantas chief until after the 2008 Olympics in Beijing. Mr Dixon's contract expires on July 1 next year.
All three candidates will have more responsibility and more people reporting to them after the restructure.
As well as Mr Borghetti, Mr Joyce and Mr Gregg, under the new structure engineering boss David Cox and perhaps one or two others in the group will be reporting directly to MrDixon, compared with 11 executives at the moment.
Mr Borghetti has worked for Qantas all his career, joining the airline straight out of school and rising through various senior sales and marketing roles.
The restructure represents a rapid rise for Mr Joyce since the launch of Jetstar in 2004 and comes as the low-cost offshoot prepares to announce international routes in May to begin flying in early 2007.
These are expected to include routes within the Asia-Pacific region not serviced profitably by Qantas, followed by routes to the United States and Europe in 2008 when Jetstar takes delivery of the first of 65next-generation Boeing 787 aircraft ordered by Qantas in December.
The new head of Jetstar Asia, former head of the Singapore Mint Chong Phit Lian, will report to Mr Joyce who last year turned down a job running his first employer, Aer Lingus of Ireland.
Ms Chong does not start officially until March 15 but was working out of Jetstar's Melbourne offices this week.
The head of regional airline QantasLink, Narendra Kumar, is expected to report to Mr Borghetti under the new system, rather than Mr Dixon.
International leisure carrier Australian Airlines is expected to be axed later this year; the future of its boss, Andrea Staines, is unclear.
Three other senior executives - chief information officer Fiona Balfour, head of alliances Paul Edwards and head of associated businesses and freight Denis Adams - have recently left.
A replacement for Ms Balfour is expected to be among several senior appointments unveiled today, although it's expected some existing executives will be asked to do more.
Radical restructure for Qantas
Feb 16
James Hall
Qantas Airways is to unveil a radical restructure of its top executive ranks and reporting channels today, slashing the number of people reporting to chief executive Geoff Dixon and paving the way for his succession.
It will result in the Qantas group being split into two distinct flying divisions: Qantas and Jetstar.
The group is expected to report a $100 million slump in interim net profit to about $360 million today because of high fuel and restructuring costs.
The new Qantas division will be run by long-serving executive general manager of Qantas Airlines John Borghetti and Jetstar's growing number of airlines is to be run by Jetstar chief Alan Joyce.
Alongside chief financial officer Peter Gregg, Mr Joyce and Mr Borghetti are considered to be leading the race to succeed Mr Dixon, who has hinted he might stay on as Qantas chief until after the 2008 Olympics in Beijing. Mr Dixon's contract expires on July 1 next year.
All three candidates will have more responsibility and more people reporting to them after the restructure.
As well as Mr Borghetti, Mr Joyce and Mr Gregg, under the new structure engineering boss David Cox and perhaps one or two others in the group will be reporting directly to MrDixon, compared with 11 executives at the moment.
Mr Borghetti has worked for Qantas all his career, joining the airline straight out of school and rising through various senior sales and marketing roles.
The restructure represents a rapid rise for Mr Joyce since the launch of Jetstar in 2004 and comes as the low-cost offshoot prepares to announce international routes in May to begin flying in early 2007.
These are expected to include routes within the Asia-Pacific region not serviced profitably by Qantas, followed by routes to the United States and Europe in 2008 when Jetstar takes delivery of the first of 65next-generation Boeing 787 aircraft ordered by Qantas in December.
The new head of Jetstar Asia, former head of the Singapore Mint Chong Phit Lian, will report to Mr Joyce who last year turned down a job running his first employer, Aer Lingus of Ireland.
Ms Chong does not start officially until March 15 but was working out of Jetstar's Melbourne offices this week.
The head of regional airline QantasLink, Narendra Kumar, is expected to report to Mr Borghetti under the new system, rather than Mr Dixon.
International leisure carrier Australian Airlines is expected to be axed later this year; the future of its boss, Andrea Staines, is unclear.
Three other senior executives - chief information officer Fiona Balfour, head of alliances Paul Edwards and head of associated businesses and freight Denis Adams - have recently left.
A replacement for Ms Balfour is expected to be among several senior appointments unveiled today, although it's expected some existing executives will be asked to do more.