 Despite its troubles, Qantas remains in profit |
Australian carrier Qantas has revealed plans for a major restructuring, as part of an effort to cut costs by 1 billion Australian dollars (�410m; $658m) over two years. In memo to staff, Qantas said it intended to split into three units, in order to allow management to focus more tightly on strategy and cost-control.
Qantas has been hit badly by the Asian Sars virus, which has battered already weak demand for travel in its core markets.
In recent months, it has cut 3,000 staff and twice issued profit warnings.
Three ways
"We now need to look at further ways of making ourselves more attractive to our customers and more efficient as our competitors restructure," said chief executive Geoff Dixon.
The airline said it would divide its operations into flying businesses, flying services such as engineering, maintenance and airports, and ancillary business such as catering and holiday services.
The plan represents a less drastic outcome than many had feared: Qantas has previously considered selling off some of its divisions.
Qantas, which despite its troubles remains comfortably in profit, is meanwhile still struggling to take a stake in Air New Zealand, a deal that has worried competition regulators.
One-Minute World News 
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