Alan Joyce Should Be Reprimanded, Not Rewarded

By Matt Innes | September 18, 2024

Once the soaring pride of the Australian skies, our national airline Qantas has been put into a tailspin by former CEO Alan Joyce.

Alan Joyce served as CEO of Qantas Airways Limited from 2008-2023, stepping down when it was revealed Qantas had knowingly sold tickets for cancelled flights during the pandemic. It was a scandal that soured a longstanding relationship between the airline and the Australian people.

Qantas is symbolic of home for millions of Australian travellers, a trusted connection between us and the rest of the world.

From humble beginnings in Winton, Queensland in 1920, the story of Qantas is a classic Aussie tale of ingenuity and perseverance in a harsh and isolated land, earning the reputation as ‘The Spirit of Australia’.

When Qantas duped its customers by selling tickets on ghost flights, that trust was broken. Coupled with revelations of a toxic corporate culture, ongoing industrial relations disputes and plummeting customer experience satisfaction, the so-called Spirit of Australia has maligned itself as a haunting spectre of its former glory.

Given much of Qantas’ decline occurred during Joyce’s tenure as CEO, many have been left questioning why he was rewarded for his remarkable failures with a lucrative remuneration package totalling $23.6 million for the 2022-23 financial year. It’s a golden handshake that would embarrass King Midas.

Even the Qantas board re-evaluated the ludicrous payout, hoping to claw back just north of $14 million from Joyce’s cut. In light of settling with the Australian Competition and Consumer Commission (ACCC) over the cancelled flights furor, along with the airline’s loss in the High Court over illegal sacking of ground staff in 2020 and a damning governance review, Joyce was docked $9.23 million, walking away with some $14 million. It is estimated Joyce has been paid $125 million during his 22-year reign.

Joyce’s behaviour and actions have harmed Qantas’ reputation and value, undermining its market position as a leading global airline.

Qantas dropped to 24^th from last year’s 17^th rank in the World Airline Awards ratings. Meanwhile, its subsidiary JetStar fell from 69^th to 74^th.

The responsibility ultimately falls on Alan Joyce for Qantas’ diminishing customer loyalty over the past three years and the decidedly swift destruction of a hard-earned and long-valued relationship with the Australian people. But instead of being punished, he has been rewarded and sent merrily on his way.

Joyce leaves behind a legacy of failure, malfeasance and manipulation. New Qantas CEO Vanessa Hudson has her work cut out for her trying to rectify the airline’s public image. Nevertheless, it will take some time for Qantas to rebuild the trust lost by Joyce.

Hudson will also have a fight on her hands affecting change among the toxic leadership culture that permeates the Qantas workforce, as reported by independent advisor Tom Saar.

Saar described a “command and control” leadership style at Qantas in which “a dominant and trusted CEO” fostered “insufficient listening and low speak up”. This top-down culture enabled a pattern of unwillingness among the workforce to speak out on critical issues regarding safety and corporate protocols.

These are truly unsettling revelations for a billion-dollar airline for which the safety of its passengers and crew should be unquestionably paramount. And Qantas isn’t exactly crying poor, given the exorbitant cost of air travel post-COVID contributing to a net profit of $1.25 billion in 2023-24. For that type of coin, Qantas can surely afford to maintain upkeep on its fleet while upholding a satisfactory level of customer service.

There is also the lingering issue of the role Joyce played in the Federal Government denying the extension of Qatar Airways services in Australia last year, for which he has not been brought to account. Nor will he be, with a Coalition move to extend the probe into the investigation blocked by the Greens and Independent senator David Pocock.

The reason Joyce was unable to attend a mandated Senate inquiry: he was overseas on ‘personal leave’, possibly too busy enjoying the ill-gotten fruits of his dubious labour.

Instead of a hefty payout and a limp slap on the wrist (“he’s a very naughty boy!”), Alan Joyce should be reprimanded for his failure to manage the financial affairs and corporate identity of our flagship airline. However, thus far Joyce has avoided any repercussions for his misdeeds.

Misleading Australian customers, blocking international competition, a long history of industrial relations disputes, laying off 20% of Qantas’ workforce during the pandemic, and contributing to the cost-of-living crisis. All of this occurred under Alan Joyce’s watch and direct supervision.

The great renewal of Qantas has already come at a cost as the company reports a 28% fall in profits on the previous financial year. This resulted in a $1.5 million pay cut for Hudson and a 30% slashing of executive bonuses.

Yet, somehow, Alan Joyce is positioned for another pay day. According to the Qantas’ 2024 annual report, Joyce will be an extra $3.4 million for his last two months as CEO. He may also potentially receive $2.4 million in deferred long-term bonuses as he remains part of the long-term incentives scheme until 2026.

There can be no renewal for Qantas’ image, no restoration of trust while Alan Joyce continues to benefit from a company he injured so greatly. It also begs the question of why Qantas would even consider reinstating a portion of his compensation they had stripped him of just 12 months ago.

The flying kangaroo may never return to its former glory and Qantas will struggle to regain consumer confidence until Alan Joyce is no longer so shamelessly suckling at its withered teat.