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Qantas CEO Alan Joyce has quit immediately bringing forward his retirement by 2 months following a horror few weeks for the airline. It’s not clear whether he fell on his sword voluntarily or was pushed by the Board to save Qantas’ reputation. Was it clear is that there has been a massive public backlash against Joyce and the national carrier. Qantas’ brand has been smashed. 

Vanessa Hudson has assumed the role of CEO given the unenviable task of picking up the pieces and restoring the Qantas brand that even its board admits has been badly damaged.

The high that Qantas was riding after announcing a record $2.47b profit less than 2 weeks ago soon came crashing down. 

Joyce has been grilled by a Senate select committee on the cost of living in view of Qantas’ record profit at a time of high airfares. He also had to defend his personal pay and bonuses. It is estimated that Joyce will walk away from Qantas with up to $24 million in a final cash and share payout.

Qantas was hit with a lawsuit over its travel credits. The class action against the airline was seeking refunds and compensation for customers who had their flights cancelled during 2020 alleging Qantas had misled customers about their refund options. Joyce was finally forced to cave bowing to public pressure and he scrapped the expiry dates on more than half a billion dollars’ worth of flight credits.

The ACCC is taking Qantas to court alleging the airline had engaged in false, misleading, or deceptive conduct in advertising and selling flights for more than 8000 flights between May and July 2022 that has already been cancelled. If found guilty Qantas could be fined as much as $300 million. 

Qantas is also faced accusations of anti-competitive behaviour after the federal government blocked Qatar Airways’ attempt to increase flights to Australia. Alan Joyce will be called to appear before a Senate inquiry to answer questions about any discussions he held with the government about the blocking of more Qatar flights into the country.

Given the storm that has engulfed the airline there is massive pressure on Qantas’ board to hold back bonus payments to Joyce. One possibility is they could tie what is owed to Joyce to the outcome of the ACCC inquiry or defer it and resolve to decide once that legal action ends.

Source: Inside Qantas turbulent week of lawsuits, Qatar Airways question, senate hearing and fight credit backflip by K Ainsworth ABC Sept 4th, Qantas board urged to withhold bonus of Alan Joyce J Barrett The Guardian Sept 4th, Former Qantas boss Alan Joyce to be called before a Senate probe into the Qatar decision by J Kelly The Australian Sept 7th.