- CFO Vanessa Hudson has chosen to lead the airline
- She is scheduled to be replaced by Alan Joyce in November
- Airline shares fall 2.4% after announcement
May 2 (Portal) – Australia’s flagship airline Qantas Airways Ltd (QAN.AX) on Tuesday appointed chief financial officer Vanessa Hudson as its next chief executive officer, becoming the first woman to lead the century-old airline.
Hudson will succeed Alan Joyce in November, whose 15-year tenure has made him the longest-serving current CEO of a major Australian company and a prominent figure in the global airline industry.
Hudson will be one of the few female executives to run a major company in Australia, although rival airline Virgin Australia also has a woman CEO in Jayne Hrdlicka.
“I have a very deep understanding of this organization,” Hudson told reporters in her first press conference as CEO-elect.
“I think the experience I’ve had, and also recently, in dealing with COVID puts me in a great position to look forward to any investment that comes with new aircraft, but continue to invest with our customers,” she said.
Qantas Chairman Richard Goyder said Hudson’s handling of the finance and treasury portfolio during the COVID crisis has been outstanding, putting her ahead of almost 40 candidates worldwide who have shortlisted the airline for the job had.
Qantas shares fell 2.4% on Tuesday, while the broader market was down 0.25%.
“Vanessa has served as market-facing CFO since October 2019, which has prepared her well for the very public role as CEO of Qantas,” RBC Capital Markets analyst Owen Birrell said in a statement.
Hudson joined Qantas 28 years ago and has held a number of senior positions including CFO, chief customer officer and senior vice president for Americas and New Zealand.
Although men still hold far more top management positions in Australian listed companies, a growing number of high-profile CEO positions are being held by women, including at the #1 investment bank, Macquarie Group, leading telecoms firm Telstra Corp, oil and gas giant Woodside and financial services company AMP.
Hudson said she is proud to lead the airline.
“Personally, I have two young daughters, 21 and 18, and I’ve always been a mom who wanted to lead by example, and listening to their reflections last night was incredibly meaningful to me,” she said.
SUCCESSION PLANS
Joyce, 56, was Qantas CEO during turbulent times, helping guide the airline through the 2008 financial crisis, the COVID-19 pandemic, volatile fuel prices and growing competition in the airline sector.
The flying kangaroo, as it’s often called, has faced a reputational crisis during the pandemic, causing flight cancellations, job cuts and the acceptance of government financial aid.
Hudson said the airline has been working to rebuild trust with its customers. But she has a difficult task connecting with the unions, which have a bad and often bitter relationship with Joyce.
Joyce hired bodyguards in 2011 after receiving death threats over his unprecedented grounding of the airline’s entire fleet during a labor dispute.
The announcement is a unique opportunity for a fresh start at Qantas, Transport Workers’ Union (TWU) national secretary Michael Kaine said in a statement.
Qantas posted a record first-half profit from a loss this year as soaring travel demand from a population that has shaken off years of pandemic restrictions has pushed up fares and profits.
Joyce, who is gay, has been a vocal supporter of campaigns for marriage equality, recognition of Native Americans in the nation’s constitution, and for women’s advancement in the corporate world.
“There are not many female CEOs in the global airline industry and it is to this country’s credit that 15 years ago a gay man was appointed CEO of the company and now we have the first woman accredited to the board,” said Joyce at the press conference.
Joyce said he and his husband would remain in Sydney, focus on community involvement and look forward to other opportunities that may arise.
Qantas said Hudson will continue in her current role until taking over as Qantas’ 13th CEO at the 2023 AGM.
($1 = 1.5088 Australian Dollars)
Reporting from Roushni Nair in Bengaluru; Edited by Maju Samuel
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Praveen Menon