TRANSCRIPT
Once an airline so revered it was a hallmark in Hollywood Movies, like Rain Man starring Tom Cruise.
“That doesn't mean they are not safe. Qantas. Qantas? Qantas never crashed.”
Now, Qantas is trying to rebuild its reputation after a turbulent few years.
This is Asia Editor for Cirium Aviation Analytics Ellis Taylor.
“The customer perspective I think is that Qantas had a bit of a fall from grace in the last couple of years but to give them their due, they are getting better. Cancellations are down quite a lot, their on-time performance is improving, things like mishandled baggage are getting better. But it takes time for that perception to then wash through.”
A governance review into Qantas was launched after the company was accused of advertising tickets that had already been cancelled – known as the ghost flights scandal – and illegally dismissing staff during COVID.
A $100 million penalty is awaiting court approval for the flight cancellations. Potential breaches of the Fair Work Act are also being determined.
The Qantas chairman-elect John Mullen said in statement today that Australians were let down and there is, quote, "still a significant amount of work to be done to rebuild the trust of all stakeholders".
According to the review, the ‘command and control’ leadership style of CEO Alan Joyce is in part to blame.
Transport Workers' Union of Australia's Michael Kaine contributed to the criticism, lamenting the airline's devolution into what he calls "a despised corporate dictatorship".
“Alan Joyce has already taken over $100 million out of Qantas in his 15-year tenure, for what? For leaving a trail of destruction at a beloved icon and for decimating aviation standards. Let's just think about what Alan Joyce has left. He has split Qantas from a beloved employing entity into 38 separate entities. 38 entities that are pitted in competition with one another leading to worker standards and service standards going through the floor.”
As a result, Mr. Joyce's pay-out will be cut by more than $9-million dollars ((9.26 million)).
That includes 100 per cent of the shares held on his behalf – valued at more than $8 million ((8.36 million)) – and a 33% reduction in his short-term incentive value worth $900,000.
Even then, he'll still take home a comfortable $14.9 million.
Short term bonuses for current and former senior executives, including new CEO Vanessa Hudson, will also be cut by 33 per cent.
Analyst Ellis Taylor says the move may turn a new page for the airline.
“This draws a line under the Alan Joyce leadership, particularly the last year of his leadership where it was quite tumultuous, and Qantas was in the headlines for all the wrong reasons. From here, it gives the new CEO Vanessa Hudson something to move on from, it gives her some more targets to hit. And really it means that it'll probably be about two years or so before the brand really gets its mojo back.”
The full review contained 32 recommendations, including changes to the way executives are paid, stricter protocols for the approval of share trading by Qantas' CEO and senior management, and more focus on employees, customers, and stakeholders.
