Base change talk is cheap for Qantas but costly for host states
QANTAS has won significant benefits from the New South Wales, Victoria and Queensland governments in a “competition” for the airlines’ headquarters that ultimately amounted to little.
Eight months after declaring all property assets were under review, Qantas announced it would retain its Sydney headquarters in Mascot, and keep Jetstar at Collingwood in Melbourne.
About 3500 workers are based at Mascot and 750 at Collingwood.
The airline’s heavy maintenance facility would stay in Brisbane and be enhanced, taking on additional work for Jetstar currently performed in Singapore.
There was also the possibility of further maintenance work to be done in Cairns, and a new regional jet base in Townsville.
Construction of a new flight training centre with aircraft simulators will begin in New South Wales in 2023, with a Brisbane facility to begin training pilots in November this year.
The review of property began last September, on the back of the airline group’s $2.7bn statutory loss for the 2020 financial year.
Designed to seek better deals and savings for the airline group, state governments were encouraged to compete for the chance to house the flying kangaroo.
Qantas CEO Alan Joyce said they did seriously consider moving one or both of the airline group’s headquarters and “there were times in the process where that seemed to be the most likely outcome”.
“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,” said Mr Joyce.
Qantas also confirmed Sydney as the launch city for the airline’s ambitious Project Sunrise flights, which will carry passengers non-stop to London, Paris and New York.