Qantas lets go of head of international division to save costs

SYDNEY • Qantas Airways said yesterday that its international division head Tino La Spina would leave the company, in a cost-saving move at a time when the airline has grounded all international flying due to the coronavirus pandemic.

The head of its domestic business, Mr Andrew David, will also take over the responsibilities of Mr La Spina, a former Qantas chief financial officer who spent 14 years at the company and is well known to investors, when he leaves at the end of the month.

Qantas chief executive officer Alan Joyce said it had become increasingly clear that the airline's international flights would be grounded until at least the middle of 2021 and it would take years for flying to return to historical levels.

"Under those circumstances, we've made the decision to consolidate the domestic and international business units under a single divisional CEO," Mr Joyce said in a statement.

The changes will take effect from Sept 1, the airline said.

It added that Mr Joyce would be on reduced pay of 65 per cent of normal levels until November, while the rest of his executive team would be on 85 per cent of normal pay as part of its response to the pandemic.

Qantas last week said state border closures were severely hampering a recovery in the domestic aviation market which, alongside its lack of international flying, would lead to a significant loss this financial year.

Citigroup analyst Jakob Cakarnis forecasts the airline will report an underlying pre-tax loss of around A$260 million (S$256 million) in the year ending June 30, 2021, according to a note to clients on Friday.

Qantas shares have fallen about 47 per cent since the start of January.

REUTERS