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

[justinbrett]

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!

Maybe Qantas wants some of that sweet AFL treatment that Queensland is dishing out

 

[Himeno]

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!

Another US import. Copying what Amazon did for their "HQ2".

 

[jakeseven7]

Well MEL won Amazons first distribution warehouse and now has also won Amazon HQ as well. .

MEL is pulling a lot of tech and fintech these days though, it makes sense for Amazon to be there....

QF analytics were in MEL for a while from memory too.

 

[antycbr]

Another US import. Copying what Amazon did for their "HQ2".

It's not new. There's a reason why Virgin Blue was headquartered in BNE for example.

It's a race to the bottom with everything on the table - in particular payroll tax.

 

[TheInsider]

Melbourne airport has said recently in terms of the VA relocation that MEL airport has plenty of land to develop new building and head offices.

So would be a great opportunity for MEL to push for this and the consolidate JQ head office in Collingwood. So much better parking...

 

[kpc]

A ploy by Joyce to get NSW government to give tax concessions etc to keep Qf headquarters in Mascot!

 

[p--and--t]

Why wouldn't you go shopping.... Perfect time to do it!


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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.

Qantas mulls moving Sydney head office interstate

Qantas says it is considering shifting its corporate HQ at Mascot to Western Sydney Airport or interstate as it prepares for life as a smaller company in a post-pandemic world.

www.smh.com.au

Agree. Why wouldn't he go shopping for a deal.

IIRC VA2 got $200M from QLD not to move.

Test the market. The states will crunch the numbers and QF will most likely get some dosh.

Even if its just enough to cover off consolidation costs and stay put, he is on a winner.

 

[sxc]

What about the human cost of forcing their staff to choose between moving their families, selling their homes, breaking family ties - or losing their jobs?

Would Qantas really risk losing their talent over this? Is this just a fake bidding war to make the NSW Government blink and will the government call their bluff?

 

[jakeseven7]

What about the human cost of forcing their staff to choose between moving their families, selling their homes, breaking family ties - or losing their jobs?

Would Qantas really risk losing their talent over this? Is this just a fake bidding war to make the NSW Government blink and will the government call their bluff?

Lots of companies move interstate. All talent is replaceable at the end of the day, certainly in MEL which arguably in some areas very relevant to QF has better talent than SYD.

But I would put money on them staying and just making the NSW government pay for the pleasure, it is really disruptive as you point out. VIC would need to come up with a KILLER bid to make them seriously consider moving.

The maintenance base on the other hand, BNE should be more worried about that I suspect.

 

[TheInsider]

What about the human cost of forcing their staff to choose between moving their families, selling their homes, breaking family ties - or losing their jobs?

Would Qantas really risk losing their talent over this? Is this just a fake bidding war to make the NSW Government blink and will the government call their bluff?

Even though there may be talent within QF in Sydney, sometimes it's good to get a clean out too. Plenty of talent in Melbourne.

Straight out QLD, SA, WA, TAS, ACT wouldn't be in the race.
VIC and NSW would be on par.

 

[dajop]

Will this also mean a smaller head office? Wondering if there's any move to more remote working, many MNC companies who have operated successfully this way through the pandemic, and as a result are looking at this in one form or another as a way of lowering costs and getting more out of employees in the sort of roles that allow it.

 

[jakeseven7]

Will this also mean a smaller head office? Wondering if there's any move to more remote working, many MNC companies who have operated successfully this way through the pandemic, and as a result are looking at this in one form or another as a way of lowering costs and getting more out of employees in the sort of roles that allow it.

Probably yes, we are looking at a smaller footprint because of this too.

But interestingly we are actually having to provide for more personal space per person as well because a lot of open plan doesn't allow for social distancing. So I wonder what the net effect will be.... time will tell.

 

[milehighclub]

This is my guess on what will happen:

- HQ to remain at Mascot. That facility is simply amazing and provides everything any company could want - especially an airline. It is close to everything that they need to be close too and anyone can be on a flight in as little as 20 minutes if required. They also have that power plant they built to power HQ and T3 (at some point). They also are able to provide adequate parking for not just office staff, but anyone who requires to be at either terminal. They even make honey for first class there!

- Sims could end up anywhere as they have to be moved because of the road works that will take place but again I think it will remain in SYD because the majority of pilots are based there and you add costs if you have to overnight pilots all year long.

- Engineering to remain in BNE but would place MEL as the only other contender.

- JQ to move to Sydney. There is enough room at HQ for them to be accommodated not to mention the facilities that could be shared by both airlines (meeting rooms, press rooms, crisis centre etc).

 

[nathrek]

Can't agree more strongly with MileHighClub. Qantas isn't going anywhere when they have an amazing purpose built HQ adjacent to their main airport. However, they will extract maximum concessions out of the NSW government.

 

[mbell1510]

Qantas to lease 20,000sqm at head office as airline deals with coronavirus fallout - realestate.com.au

The national carrier is looking for tenants to occupy half of its Sydney headquarters amid talks it could bid farewell to the city altogether.

www.dailytelegraph.com.au

Qantas is looking to sublease two of its four buildings at Mascot to other businesses, as well as office space in Melbourne and Hobart. Apparently they have a lease on their HQ until 2030.

 

[Kerrodt]

All states that bid for this should put a condition in their bids that all jobs that were offshored (call centres etc) should be repatriated where feasible.

In the end, NSW and Qld governments will be the big losers here. NSW will bid up high to keep Mascot and “International home” status of Qantas; Qld will bid up high to keep maintenance jobs in Qld (with a Qld election looming Qld Premier AP will do “whatever it takes”); Vic will do a bit, but not much, to keep JQ.

If the end result is any different to this then AJ has played a stellar game and won big $$ from a financially reckless state government.

Great strategic move by AJ.

 

[I love to travel]

All states that bid for this should put a condition in their bids that all jobs that were offshored (call centres etc) should be repatriated where feasible.

In the end, NSW and Qld governments will be the big losers here. NSW will bid up high to keep Mascot and “International home” status of Qantas; Qld will bid up high to keep maintenance jobs in Qld (with a Qld election looming Qld Premier AP will do “whatever it takes”); Vic will do a bit, but not much, to keep JQ.

If the end result is any different to this then AJ has played a stellar game and won big $$ from a financially reckless state government.

Great strategic move by AJ.

And I just hope that the states are wise enough to see that.

 

[justinbrett]

Qld will bid up high to keep maintenance jobs in Qld (with a Qld election looming Qld Premier AP will do “whatever it takes”)

Well, apart from opening the border.

The deputy premier has already been slagging Qantas off before this announcement (accusing them of price gouging international travellers to come home - he didn't get the memo Qantas have ceased international pax flights). It's a pretty bad starting point. I'm tipping Brisbane will lose the jobs.

 

[ayebee]

Clever when you are big enough to game the states.

I hope Qantas doesn't see its real estate needs as diminishing because it plans to become more and more a sub-contractor aggregator.

 

[[email protected]]

If Qantas moves head office and maintenance interstate or to western Sydney it an easy way to clean out long serving staff and maybe lower conditions using the excuse of Covid19