Qantas to split off international routes

Split “brings in added transparency and detail” to two units

Under increasing pressure from its loss-making international operations, Qantas Airways has taken the decision to split its international business from its profitable domestic business. The two businesses will have separate chief executives, report earnings separately and maintain separate operational and commercial plans. The move is part of a five-year turnaround plan for the airline.
Analysts say that the decision is not necessary the first stage of an eventual sale of the international business. More likely, “this is aimed at showing external stakeholders, such as unions and government, how difficult the international business is,” one analyst commented. “The split brings in added transparency and detail to the two units. It lets Qantas say, this is what we have to do to fix it.”
[photo courtesy Qantas Airways]


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