Changes to Qantas Group Management

Sydney, 25 March 2009

The Qantas Group today announced reductions in management staff as part of a fundamental review of the company's organisational structure to ensure it is better equipped to respond to commercial challenges, including the impact of the current global financial situation.

The company will be removing 90 current senior management positions, maintaining a salary freeze and making a number of role changes for remaining managers.

Qantas Chief Executive Officer, Mr Alan Joyce, said: "It is clear that the aviation sector faces considerable commercial challenges for the foreseeable future. Qantas must respond decisively to what is happening, and our response must begin with those of us who lead the company.

"Starting today, we will be making some longer term organisational changes to the management of the Qantas Group to develop a leaner, more fast-moving organisation.

"The global financial situation will affect Qantas and other airlines.

"We will be moving to a structure that reduces the numbers and layers of management in Qantas.

"This means a number of managers will be leaving the company. The ongoing management team are being asked to take on new tasks and we are asking every manager to work with his or her team to achieve more operational efficiency in coming months.

"The ability to make hard changes earlier than others distinguishes Qantas from its competitors. We confront challenges when they need to be confronted. Doing so has helped the Qantas Group survive and prosper.

"These changes will mean fewer overheads and reduce the number of layers between those leading the business and those working with our customers, our aircraft and business partners.

"But we are taking great care to retain the ability to deliver world class customer service and ensure safety is not compromised.

"Unfortunately, introducing a flatter, leaner structure means making some tough decisions about which managers will go and who will stay.

"I want to extend my thanks to those that will be leaving for their efforts. We will be working with everyone in that situation to ensure that we assist them to deal with the transitions they face as much as we can."

Issued by Qantas Corporate Communication (3904)