Qantas confirms global headquarters will remain in Sydney

Australia’s premier airline has confirmed where its global headquarters will be after dismissing a ‘most likely outcome’.

Qantas has confirmed its global headquarters will remain in Sydney.

The flying kangaroo announced it had completed a review of its property portfolio following a massive $2.7bn financial loss last year as a result of the coronavirus pandemic.

Speculation had been mounting that Qantas was potentially moving its head office to Queensland or a new location; however, it will retain its office space in Mascot, Sydney.

Its budget arm Jetstar will retain its Melbourne headquarters, while its heavy maintenance business will be based in Brisbane.

“Moving one or both of our headquarters was always a live option, and there were times in the process where that seemed to be the most likely outcome,” Qantas chief executive Alan Joyce said.

The flying kangaroo announced it had completed a review of its property portfolio. Picture: NCA NewsWire / Gaye Gerard

“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.”

Mr Joyce said the property review was a necessity following the major earnings hit last year and the massive reduction in the company’s workforce.

“Aviation has probably taken the biggest hit of any industry from the COVID crisis, and Qantas has seen $11bn in revenue evaporate because of state and federal travel restrictions,” he said.

“Under those circumstances, we had to look seriously at every part of our business, and that’s why reviewing our property footprint became part of our recovery program.”

Qantas also revealed Sydney would be the launch base for its Project Sunrise, non-stop flights to New York and London once international travel resumed.

The airline has also committed to the construction of new flight training centres in Queensland and NSW and an extension of its existing facility in Melbourne.

It is also set to expand its engineering capabilities at Melbourne Airport in partnership with the Victorian government.

Mr Joyce said the property review was a necessity following the major earnings hit last year. Picture: NCA NewsWire/Bianca De Marchi

The engineering hubs will create at least 300 direct jobs and an estimated 400 indirect jobs, according to the Victorian government, and provide an additional $140m to the state’s gross state product.

“Businesses know that Victoria is a place where they can grow and thrive – the decision by Qantas is a vote of confidence in our state,” Victorian Treasurer Tim Pallas said.

“The Victorian economy is bouncing back with more than 240,000 jobs created since September, and it’s fantastic that Qantas and Jetstar will be even bigger contributors to our recovery.”

Mr Joyce noted the expansions would assist in the company’s growth strategy once the COVID-19 pandemic eased.

“Some of this has been about cost saving by rationalising office space, and some is about unlocking the huge amount of future value that the Qantas Group will bring the local economy in the years ahead,” he said.

“Ultimately, our recovery program is about putting us in a position to grow again, which is when the benefits to each state will really flow.”