The Qantas Group has announced that the CEO of Qantas International, Tino La Spina, will step down due to the lengthy base of aircraft. The Australian national flag carrier said today that Mr La Spina would leave his post if the airline continues to wrestle with the outcome brought on by the crisis in the coronavirus.
Duties currently under control by Mr La Spina will be transferred to Qantas Domestic CEO Andrew David. As a result of the changes, Mr. David will now add the international activities of the airline to his current role leading Qantas Domestic and Qantas Freight.
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COVID-19 forces Qantas to think twice
While talking about the changes in the press release, CEO Alan Joyce of the group said:
“The COVID crisis is forcing us to remember our company at every level. It is becoming increasingly clear that our international flights will be grounded by at least mid-2021, and it will take years for activity to return to what it was before. Under these circumstances, we have decided to consolidate the domestic and international business units under one divisional CEO.
“Tino has done a great job in Qantas in his 14 years. He is a talented executive who brings his trademark enthusiasm to every challenge. I know I speak for the rest of the executive team and for the board sincerely thank you for the enormous contribution he has made, especially as Deputy CFO and then CFO for most of that time. “
The changes announced in the press release will take effect from September 1st.
Qantas sends 787s to the Mojave Desert
Before the news of Mr. La Spina’s departure, the graduate of Swinburne University of Technology along with Jetstar boss Gareth Evans was seen as the next possible CEO of Qantas. Current CEO of Qantas Group Alan Joyce previously agreed that he would stay with the airline to help it by leading the COVID-19 pandemic.
Since the outbreak of the virus, Qantas has sent its 12 Airbus A380s to the Mojave Desert in California, where they are expected to stay for at least three years. Given the projected timeline of Australian carriers for the return of international flights, Qantas now plans to send nine of its 11 Boeing 787 Dreamliners to join the A380s in California.
Some 20,000 Qantas employees are currently furlough with the airline seeking to lay off 6,000 people from the pre-COVID-19 workforce of 29,000. Qantas also announced today that after a three-month exemption from executive pay, its bosses will begin taking a reduced salary.
Qantas CEO Alan Joyce will start receiving 65% of his previous salary, while other executives will receive 85% of their previous salary. While the top people at Qantas will start getting reimbursed again, no bonuses will be awarded for the 2020 fiscal year.
Qantas to wait out the storm
Qantas has little choice but to wait and see how the coronavirus pandemic plays out. Unlike other countries, Australia has banned its citizens and permanent residents.
Likewise, no tourists are allowed to enter the country, nor a damper for all international travel. It looks like 2020 will be a case of craving down and the storm awaiting Qantas.
What do you think about the way Qantas is dealing with the pandemic? Please tell us what you think in the comments.
