QANTAS SELLS OFF BRISBANE TERMINAL

Written on the 27 February 2014

QANTAS SELLS OFF BRISBANE TERMINAL

QANTAS (ASX:QAN) will return its Brisbane Airport terminal lease to the airport for $112 million in cash, in a bid to cut costs following significant losses.


The airline today announced a $235 million statutory loss after tax and four per cent drop in revenue to $7.9 billion in the half year to December.


The sale of the airport lease is part of the broader $2 billion cost-cutting exercise, which will include the loss of 5000 jobs and pay reductions across the group, plus the sale of more than 50 of its aircraft.


Chief executive officer Alan Joyce says the company would take comprehensive action to survive in the competitive market.


“Qantas’ competitors have increased capacity to Australia by 46 per cent since 2009, more than double the world average, at a time of record fuel costs and economic volatility.


“The Australian domestic market has been distorted by current Australian aviation policy, which allows Virgin Australia to be majority-owned by three foreign government-backed airlines – yet retain access to bilateral flying rights.


“We have been clear with the Australian Government about the uneven playing field and the measures we believe could address it.


“But our focus today is on the immediate steps that Qantas must take,” Joyce says.


Joyce says he regrets the need for job losses and will work with the employees to manage their exit from the business.


“At the end of this transformation, Qantas will remain an employer of more than 27,000 people, the vast majority based in Australia- and we will be a better and more competitive company,” he says.


The airline will review other assets in its portfolio, with the Brisbane Airport deal expected to be finalised in the second half of FY14.


QAN is trading down 7.48 per cent at $1.175 this morning.


Latest News

JENNIFER WESTACOTT ON BANK TAX: IT EXPOSES GOVERNMENT 'DESPERATION'

BUSINESS COUNCIL CHIEF EXECUTIVE JENNIFER WESTACOTT

South Australia's new bank levy exposes the desperation of...

BASKETBALL'S COMEBACK CONTINUES WITH NBL CLUBS TO FACE OFF AGAINST CHINA'S NATIONAL TEAM

THE RESURGENCE of Australia's National Basketball League (NBL) continues with China's national team to play t...

ADELAIDE APARTMENT BREAKS OFF-THE-PLAN RECORD WITH $3M SALE

AN apartment in 'The Adelaidean' residential development in Adelaide has sold for more than $3 million, which...

CABCHARGE GIVEN GREEN LIGHT TO BUY YELLOW CABS IN QUEENSLAND FOR $20M

THE consumer watchdog will not oppose the proposed acquisition of Yellow Cabs in Queensland by taxi payment service C...

Related News

BASKETBALL'S COMEBACK CONTINUES WITH NBL CLUBS TO FACE OFF AGAINST CHINA'S NATIONAL TEAM

THE RESURGENCE of Australia's National Basketball League (NBL) continues with China's national team to play t...

DOMESTIC TOURISM IN AUSTRALIA BREAKS RECORDS, INJECTS $61.7 BILLION INTO NATIONAL ECONOMY

DOMESTIC Australian tourists have spent a record breaking $61.7 billion on intra and interstate travel this year, acc...

THE DOCTORS WHO PLUNGED INTO THE SHARK TANK AND SURVIVED WITH A $500,000 INVESTMENT

THEIR mission is to change the face of cancer care with an app that empowers and connects patients and care givers...

IMF BRACES FOR BIG LOSS FOLLOWING WITHDRAWAL FROM SPOTLESS CLASS ACTION

LITIGATION fund IMF Bentham (ASX: IMF) is set to lose as much as half a million dollars after it ceases funding one o...

BOOK YOUR FUNCTION SPACE HERE

 

 

 

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter