Portal—
Qantas Airways said on Tuesday that long-time CEO Alan Joyce would leave the company two months earlier than previously announced, as reputational turmoil plagues Australia’s flagship airline.
Joyce’s early retirement will result in CEO-designate Vanessa Hudson, the first woman to lead the century-old airline, taking over on Wednesday.
The accelerated departure comes after Qantas apologized on Monday for poor service standards and acknowledged the company had suffered reputational damage, less than two weeks after the company reported record annual profit supported by strong travel demand.
Australia’s competition watchdog sued the company last week for allegedly selling tickets for more than 8,000 canceled flights between May and July 2022 without disclosing the cancellation.
The airline had also faced scrutiny from politicians and the public over its decision to let nearly A$500 million ($323.00 million) in pandemic-era airline credits expire by the end of the year, which came shortly after The filing of the lawsuit was reversed by the regulatory authority.
Controversies surrounding Qantas, including the granting of premium airport lounge membership to Prime Minister Anthony Albanese’s son and the company’s opposition to Qatar Airways launching additional flights to Australia, have generated numerous recent headlines and editorials in the newspapers in the country.
The airline’s share price has also taken a hit, falling 13% since the start of August, amid questions about whether it had maximized profits at the expense of its longer-term reputation with customers.
“The focus on Qantas and past events have made it clear to me in recent weeks that the company needs to prioritize its renewal,” said Joyce, who served as the airline’s CEO for 15 years.
Chairman Richard Goyder said the leadership change came at a “challenging time” for the airline and its employees.
“We have an important job in restoring the public’s trust in the type of company we are, and that is what the board is focused on and what management under Vanessa’s leadership will respond to,” Goyder said in a statement.
Qantas announced a series of leadership changes in June to increase focus on key areas as the airline completes its post-pandemic recovery.
The airline said that in addition to Hudson, newly appointed chief financial officer Rob Marcolina will also get an early start.