Qantas Airways CEO Alan Joyce has decided to step down two months earlier than initially planned amidst a growing public controversy surrounding allegations of illegal ticket sales by the airline.
Joyce, who has served as the CEO for 15 years, was scheduled to retire in November but cited recent events and the intense focus on Qantas as the reason for his early departure.
The controversy emerged after Australia’s consumer watchdog sued Qantas, accusing the airline of selling tickets for around 8,000 flights in mid-2022 that had already been canceled, thus violating the country’s consumer protection laws.
Qantas had issued apologies and attributed the issue to challenging industry conditions at the time.
Joyce’s early retirement is seen as an effort by the airline to address public and political pressure that has been mounting over the years.
During his tenure, Joyce faced criticism for job cuts, including a 2011 decision to ground the entire Qantas fleet during an industrial dispute.
Additionally, Qantas had faced negative attention for lobbying the Australian government to prevent rival Qatar Airways from increasing its flights to Australia.
Further scrutiny arose when Qantas initially allowed nearly A$500 million ($323 million) in pandemic-era flight credits to expire at the end of the year, a decision that was later reversed after the regulator filed its lawsuit.
Despite achieving a record annual profit last month following three years of pandemic-related losses, Qantas saw its share price drop by 13 per cent since the start of August.
There were concerns that the airline had prioritized short-term profits over its long-term reputation with customers.
Vanessa Hudson will assume the role of CEO, becoming the first woman to lead the century-old airline. Labor Senator Tony Sheldon criticized Alan Joyce’s legacy, stating that it was characterized by low pay, job insecurity, illegal dismissals, and consumer issues.
In response, the Australian and International Pilots Association (AIPA) expressed optimism about working with incoming CEO Vanessa Hudson to rebuild the airline’s reputation and regain public trust.
AIPA President Captain Tony Lucas stated, “We look forward to working constructively with incoming CEO Vanessa Hudson to rebuild our iconic airline into the respected and trusted brand that has made all Australians proud.
There is much work to be done; however, we trust that Hudson recognizes the power of respecting and valuing all Qantas staff and how that can play a significant role in the renewal of the airline.
The Spirit of Australia may be deflated, but it is not defeated, and if we all work together, I’m confident Qantas can be great once more.”
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