The boss of Qantas is handing the over the reins to his successor two months earlier than expected as the carrier admitted its service standards had fallen “well short”.
Group chief executive Alan Joyce (pictured, right) has brought forward his retirement from the Australian carrier after 15 years in charge.
As a result, chief executive-designate Vanessa Hudson will assume the role of managing director and group CEO from tomorrow (September 6) instead of November as originally planned.
The airline said in a statement that Joyce “has advised the board he will bring forward his retirement by two months to help the company accelerate its renewal”.
More: More long-haul aircraft ordered as Qantas climbs out of Covid losses
His early departure comes less than a week after the Australian Competition & Consumer Commission (ACCC) started legal action, accusing Qantas of “engaged in false, misleading or deceptive conduct” by advertising tickets for more than 8,000 flights that it had already cancelled but not removed from sale between May and July 2022.
The watchdog alleged that 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 claimed that, for more than 10,000 flights scheduled to depart in the three months period, Qantas did not notify existing ticket holders that their flights had been cancelled for an average of about 18 days, and in some cases for up to 48 days.
In response, Qantas said yesterday (Monday) that it continues to review the allegations made by the consumer watchdog, adding: “The period of time that the ACCC’s claims relate to, in mid-2022, was one of well-publicised upheaval and uncertainty across the aviation industry, as Qantas struggled to restart post-Covid.
“We openly acknowledge that our service standards fell well short and we sincerely apologise. We have worked hard to fix them since and that work continues.
“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.
That was followed 24 hours later by Joyce announcing his early exit.
He 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 Vanessa and the new management team now, knowing they will do an excellent job.
“There is a lot I am proud of over my 22 years at Qantas, including the past 15 years as CEO.
“There have been many ups and downs, and there is clearly much work still to be done, especially to make sure we always deliver for our customers. But I leave knowing that the company is fundamentally strong and has a bright future.”
Qantas chairman Richard Goyder added: “Alan has always had the best interests of Qantas front and centre, and today shows that.
“On behalf of the board, we sincerely thank him for his leadership through some enormous challenges and for thinking well-ahead on opportunities like ultra long-haul travel.
“This 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 Vanessa’s leadership will do.”
More: More long-haul aircraft ordered as Qantas climbs out of Covid losses