Qantas overhauls procurement team

7 April 2009

8 April 2009 | Martha McKenzie-Minifie

Australian airline Qantas is restructuring its procurement services as part of a major review that will see 90 senior management positions shed across the company.

A spokeswoman told SM the group general manager of strategic procurement, Tony White, was made redundant and left the company at the end of March. Tony Bell was now heading strategic procurement.

Qantas has an annual spend of more than AU$8 billion (£3.8 billion) and cited on its website the importance of procurement and supply chain efficiency to the company's overall operations. It would not elaborate on what other changes were to be made to its procurement team and its buying strategy.

The Qantas Group announced on 25 March that it would cut 90 current senior management positions, maintain a salary freeze and make several role changes for remaining managers.

It was a response to commercial challenges, including the global economic downturn. Latest figures from the International Air Transport Association (IATA) showed passenger volumes across the sector in February down more than 10 per cent from a year earlier.

Alan Joyce, chief executive of Qantas, said the aviation sector faced commercial challenges for the foreseeable future.

"The ability to make hard changes earlier than others distinguishes Qantas from its competitors," he said.

"These changes will mean fewer overheads and reduce the number of layers between those leading the business and those working with our customers, our aircraft and business partners."

 

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