Qantas announced today it is preparing to separate its international service division, making it easier to sell off the business.
The government’s partial repeal of the Qantas Sale Act, which increased foreign ownership limits to 49%, has made it easier to establish Qantas International as a separate entity.
The details of today’s full year results, including the disastrous statutory loss of $2.84 billion, could also affect the future of Qantas International.
“We have decided to create a new holding company structure and corporate entity for Qantas International,” says CEO Alan Joyce.
Qantas says the “new structure increases potential for future external investment, and creates long-term options for Qantas International to participate in partnership and consolidation opportunities.”
The international arm is where most of the writedowns, which produced the record loss, came from.
The board of Qantas still needs to approve the new international services structure but is expected to rubber stamp the proposal.
The move builds on existing segmentation of Qantas International and Qantas Domestic at management and financial performance reporting levels since 2012.
This chart shows how Qantas is being split into four business units in addition to its Jetstar brands:
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