Qantas to keep head office in Sydney, Jetstar in Melbourne

Qantas will keep its head office in Sydney and its budget arm Jetstar based in Melbourne after extracting tax waivers and other subsidies from governments desperate to keep jobs in their states.

The airline announced a review of its property footprint in September in the wake of its $2.7 billion pandemic-inflicted loss, saying it would look for financial incentives from NSW, Victoria and Queensland to shift or retain up to 7000 jobs.

Qantas said on Thursday morning that it had decided to retain its footprint broadly as it was before the pandemic, with its head office based in Mascot, Sydney; Jetstar based in Melbourne’s Collingwood and its heavy aircraft maintenance based at Brisbane Airport.Credit:Bloomberg

Qantas said on Thursday morning that it had decided to retain its footprint broadly as it was before the pandemic, with its head office based in Mascot, Sydney; Jetstar based in Melbourne’s Collingwood and its heavy aircraft maintenance based at Brisbane Airport.

Agreements being finalised with state governments would deliver a “range of benefits” in return for the commitment on jobs and investments, including payroll tax waivers, tourism marketing funding, property rebates, training support and “direct incentives”, the company said.

“Each state put a lot of effort into their offers,” Qantas chief executive Alan Joyce said.

“Moving one or both of our headquarters was always a live option and there were times in the process where that seemed to be the most likely outcome.

“Ultimately, once the final offers were assessed on a like-for-like basis, the set of decisions we made was the most beneficial to the Group overall.”

Qantas said the total value of the state government incentives would roll out over multiple years and remain confidential.

More to come

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