Qantas Reviewing Its A$2 billion Property Portfolio

Qantas Reviewing Its A$2 billion Property Portfolio
Qantas has confirmed that it is reviewing its $2 billion property portfolio, including domestic freight and passenger terminals, to see if they should be retained or sold. It is estimated that the airline's terminals in Sydney and Melbourne alone would fetch up to $500 million. Qantas chief executive Geoff Dixon recently said that considering his airline was one of the few in the world to own its terminals, it could make sense to sell and lease back some assets. He also said it was possible that the terminal assets could be spun-off into a separate property trust, and he suspected it was more efficient not to own them.

The review could take up to six months according to a Qantas spokeswoman as the airline embarks on a three-year $6 billion investment program. Qantas recently announced a $1 billion cost-cutting program over the next two years and is splitting its operations into eight stand-alone units, each with its own budget and management.


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