Qantas CEO to step down earlier than expected amidst legal proceedings

share on

twitter /
facebook /
linkedin /
- email
- telegram
- whatsapp
- wechat
- pinterest
- line
- snapchat
- reddit

Qantas Group CEO Alan Joyce will bring forward his retirement by two months to help the company accelerate its renewal, according to the airline in a statement. As a result, CEO designate Vanessa Hudson will assume the role of managing director and group CEO effective 6 September 2023. Hudson was previously CFO of the brand and also previously held the role of chief customer officer.

The changes come as legal proceedings are underway as the Australian Competition and Consumer Commission said that it would be taking Qantas to court. It alleged that it advertised and sold tickets for over 8,000 flights that it had already cancelled in its system.

Don't miss: Malaysia Aviation Group to diversify about 30% of non-airline business as it future-proofs itself

In the outgoing statement, Joyce said, “In the last few weeks, the focus on Qantas and events of the past make it clear to me that the company needs to move ahead with its renewal as a priority.”

“The best thing I can do under these circumstances is to bring forward my retirement and hand over to Hudson and the new management team now, knowing they will do an excellent job,” he said. Joyce has spent over 22 years with the company, and as CEO for the past 15 years. Joyce was also previously CEO of Jetstar.

He also shared that there have been many ups and downs during his time, and “there is clearly much work still to be done, especially to make sure we always deliver for our customers”.

Qantas chairman Richard Goyder added that Joyce has always had the best interests of Qantas front and center, and that his decision shows this. He added that the transition comes at what is obviously a challenging time for Qantas and its people.

“We have an important job to do in restoring the public’s confidence in the kind of company we are, and that’s what the board is focused on, and what the management under Hudson's leadership will do,” added Goyder.

Meanwhile, the ACC has alleged that for more than 8,000 flights scheduled to depart between May and July 2022, Qantas kept selling tickets on its website for an average of more than two weeks, and in some cases for up to 47 days, after the cancellation of the flights. It is also alleged that, for more than 10,000 flights scheduled to depart in May to July 2022, Qantas did not notify existing ticketholders that their flights had been cancelled for an average of about 18 days, and in some cases for up to 48 days.

On 31 August, Qantas responded in a statement and said that it has a longstanding approach to managing cancellations for flights, with a focus on providing customers with rebooking options or refunds.

"It’s important to note that the period examined by the ACCC between May and July 2022 was a time of unprecedented upheaval for the entire airline industry. All airlines were experiencing well-publicised issues from a very challenging restart, with ongoing border uncertainty, industry wide staff shortages and fleet availability causing a lot of disruption," it said.

On 4 September, Qantas released a follow-up statement stating that they understand that the allegations have caused "significant concerns" among customers and the general community.

It said, “We openly acknowledge that our service standards fell short, and we sincerely apologise. We have worked hard to fix them since and that work continues.”

The company also acknowledged that the ACCC’s allegations come at a time when Qantas’ reputation has already been hit hard on several fronts.

“We want the community to know that we hear and understand their disappointment. We know that the only way to fix it is by delivering consistently. We know it will take time to repair. And we are absolutely determined to do that," it added.

share on