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Qantas restructures catering unit

Hotel Booking Qantas said that it would retain its catering business and substantially restructure the operation.

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Travel Agency 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.

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Cheap Hotel 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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Flight Booking "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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Travel Agent "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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Hotel Chicago "The greatest volume of our catering work is carried out at these two centres and each currently services both Qantas and client airlines.

Online Booking "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.

Travel Health Insurance "This will enable us to operate more efficiently by streamlining processes at the dedicated facilities."

Hotel Reservation Mr Fenn said some positions would be affected by the change.

London Hotel Booking "We will manage the impact on our people as far as possible through redeployment, attrition and by reducing casual hours.

Discount Travel As many as 30 redundancies may be required, but we expect these will all be achieved through expressions of interest.

Orlando Hotel "We do not expect these changes to impact on product and service delivery during the transition process."

Booking Agency Mr Fenn said that the restructure of Qantas' five other flight catering centres - in Melbourne, Brisbane, Perth, Adelaide and Cairns - would also commence immediately.

International Travel Medical "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.

New York Hotel Mr Fenn said the Qantas Group's Brisbane-based Snap Fresh business would not be affected by the changes.

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