AUSTRALIAN flag carrier Qantas is planning to divide its international and domestic arms into separate entities as part of efforts to turn around its loss-making business.

As part of the revamp, Qantas International and Qantas Domestic – currently operating together as ‘Qantas Airlines’ – will be managed as two distinct businesses, effective July 1, 2012. Each will have its own CEO, while financial results will also be reported separately.

Qantas said in a statement that the changes would facilitate a greater focus on turning around the Qantas International business, while simultaneously enhancing the strong Qantas Domestic business.

Qatas Group CEO, Alan Joyce, said: “Qantas Domestic and Qantas International face very different situations. Formally separating the management of Qantas International and Qantas Domestic will ensure that we can independently run each business according to its specific priorities and market conditions.”

“Operationally, it will continue to be business as usual for Qantas customers and employees. We will be carefully working through the details of the separation of Qantas International and Qantas Domestic over the next few months.”

As a consequence of the revised structure, a number of changes will be made to Qantas Group’s executive management team.

Simon Hickey, currently CEO, Qantas Frequent Flyer, will be promoted to CEO, Qantas International. Lyell Strambi, currently group executive, Qantas Airlines Operations, will be promoted to CEO, Qantas Domestic. Lesley Grant, formerly group executive responsible for international strategy, will be promoted to CEO, Qantas Frequent Flyer.

Rob Gurney, group executive Commercial and Freight, Qantas Airlines, will be leaving the organisation.