Qantas considers moving SYD HQ interstate / Heavy maintenance away from BNE

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jakeseven7

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Qantas says it is considering moving out of its corporate headquarters in Sydney's Mascot and could shift to Western Sydney Airport or interstate as it prepares for life in the post-pandemic future.

The airline has decided to lay off close to a third of its workforce since the start of the COVID-19 crisis, or about 8000 workers, and on Tuesday said it was looking to shrink its physical footprint accordingly to cut costs.

A review of Qantas' corporate property footprint will focus on its 49,000 square-metre head office near Sydney Airport, where around 5000 people work, and Jetstar’s head office in Collingwood, Melbourne, where about 1000 employees are based.

The airline will also look at moving its heavy aircraft maintenance facility in Brisbane, which employs about 750 people, to any other airport in Australia along with its flight simulators in Sydney and Melbourne.

Qantas said it would shop around state governments for financial incentives to move its operations or leave them where they are. The Queensland government offered $200 million in a desperate move to keep Virgin Australia based in Brisbane after it collapsed in April.



 
Well Dan has already said he has talked with AJ and will make an attractive bid for QF to move to Melbourne.

The NSW Treasurer has also said they will do what it takes to keep all NSW jobs in NSW.

Decision expected in 3 months.
 
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Well Dan has already said he has talked with AJ and will make an attractive bid for QF to move to Melbourne.

The NSW Treasurer has also said they will do what it takes to keep all NSW jobs in NSW.

Decision expected in 3 months.

I highly highly doubt they will move state, would be a massive disruption to their operations. But they will extract a pound of flesh from whichever government grabs them.

NSW will have to stump up some serious cash to keep them I expect.

VIC is probably the only other place they would consider seriously given all of JQ is there, MEL being curfew free, the option of Avalon as a secondary option. MEL has equal corporate talent to SYD as well.
 
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The maintenance base is a clear shot at the Queensland Gov. “Any airport that will take them” sounds quite general!

Avalon and Melbourne would both bid hard for this I would expect.
 
A few things going on here:
No chance in hell Qantas will move from Sydney.
Qantas will punish QLD for keeping its borders closed
VIC is a pawn to keep NSW on its toes
I predict JQ will be more integrated into mainline (especially international) to cut costs, hence the joint HQ
I predict international, when it resumes, will hub most people through SYD
 
So if AVV got QF maintenance there might be AVV-MEL and vice versa flights for pilots.

The facilities in AVV are in disrepair, QF would need to build a brand new hangar. I have been in the old QF hangar recently and it's (almost literally) a shambles.

I would think MEL would be a much easier option if it were to go to VIC (which I think is very unlikely).
 
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I expect a consolidation of all operations into Coward St Mascot for the short term and some commitment to SWZ. Will depend on how angry AJ is regarding state borders to see facilities pulled from Queensland.
 
Very smart move by QF, they have put their HQ and heavy maintenance out to tender and the state governments are falling over themselves to win the business (approx 6000 jobs plus downstream employment.)
 
Very smart move by QF, they have put their HQ and heavy maintenance out to tender and the state governments are falling over themselves to win the business (approx 6000 jobs plus downstream employment.)

To be clear, it's 6000 jobs now but they are expecting to downsize and reduce duplication between QF & JQ.
 
I have never understood how governments actually make money by doing this.
It's no different to companies selling "loss leader" products.
Offer discounts/tax breaks on something to encourage new customers, knowing that the extra revenue coming from other areas will make up for it.

Same reason QLD keeps letting Tom Hanks skip quarantine to film a movie which they've provided a multi million 'enticement' to. The additional revenue the state will get, because the production is there, will make up for the millions the state spent to get them there.
 
Trying to get states to bid to keep HQs sets a bit of a worrying precedent, especially if companies renege. But hopefully they can't send the funds offshore unlike what's been alleged with other businesses.

But if QF moved from SYD to MEL, that might put an end to its reputation as Sydney-centric, at least until the next bidding war!
 
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