Qantas restructures catering division
Laptop Battery Qantas has confirmed that it will retain its catering business
and substantially restructure the operation.
The restructure of Qantas Catering is expected to provide improvements in Earnings Before Interest and Tax (EBIT) in excess of $15 million per annum. Mr Dixon also said that Qantas was making solid progress towards its target of $3 billion of benefits through Sustainable Future for the five years to June 2008. "These reforms will lead to an improved cost structure in future years. However, if fuel prices continue at this level, further restructuring will be required, " he said.
Thinkpad Qantas Executive General Manager Associated Businesses, Mr Grant
Fenn, said the decision followed a review of operations that had
included major restructuring opportunities and a potential sale of
the business.
"This position has been reinforced by a $ 06 after hedging, a significant amount of which will not be recovered by surcharges." Mr Dixon said Qantas had also decided not to sell its Catering operations, 06 forecast. "The offers we received for our Catering business did not represent good value compared to the benefits we expect to achieve by retaining the business and restructuring it, " he said.
Microsoft He said the prices that were available from the market did not
represent good value when compared with Qantas restructure
plans.
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Laptop Computers The first stage of the restructure will provide a 45 per cent
increase on current Earnings Before Interest and Tax (EBIT)
forecasts of $34 million.
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Laptop Computer Initially, the restructure will focus on our two Sydney catering
facilities QFCL Sydney, located on our Sydney Jetbase, and Caterair
Sydney, located nearby at Mascot.
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Desktop Computer The greatest volume of our catering work is carried out at these
two centres and each currently services both Qantas and client
airlines.
Notebooks Over the next nine months, we will reorganise the work by
concentrating all client airline catering services in one facility
and all the Qantas catering services in the other.
Lenovo This will enable us to operate more efficiently by streamlining
processes at the dedicated facilities.
Hard Drive Mr Fenn said some positions would be affected by the change.
Travelstar We will manage the impact on our people as far as possible
through redeployment, attrition and by reducing casual hours.
Gateway As many as 30 redundancies may be required, but we expect these
will all be achieved through expressions of interest.
Laptop Parts We do not expect these changes to impact on product and service
delivery during the transition process.
Software Mr Fenn said that the restructure of Qantas five other flight
catering centres in Melbourne, Brisbane, Perth, Adelaide and Cairns
would also commence immediately.
Hard Drives This will involve an extensive review of the supply chain
improving product engineering and demand forecasting, reducing
inventory lines, leveraging our buying power and improving our use
of food production technologies, he said.
Electronics Mr Fenn said the Qantas Groups Brisbane-based Snap Fresh
business would not be affected by the changes.
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