In the face of mounting ACCC legal proceedings, Qantas‘ CEO, Alan Joyce, has announced that he will bring forward his retirement by two months to help the company accelerate its renewal.
ACCC Allegations Shadow Qantas’ Operations
The ACCC (Australian Competition and Consumer Commission) recently unveiled severe allegations against the airline, accusing it of misleading and deceptive conduct by continuing to sell tickets for flights that had already been cancelled. This legal action has cast a shadow over Qantas’ operations, marking a critical juncture in the airline’s journey.
On August 31, the ACCC initiated legal proceedings against Qantas Airways in the Federal Court of Australia, accusing the airline of misleading conduct. The ACCC alleges that Qantas continued to advertise and sell tickets for over 8,000 flights between May and July 2022 that were already cancelled, keeping them on sale for an average of more than two weeks post-cancellation, sometimes up to 47 days. Moreover, the airline reportedly failed to promptly notify existing ticketholders of the cancellations, with delays reaching up to 48 days in some instances.
Qantas is accused of neglecting to update its “Manage Booking” webpage to reflect the cancellations, impacting a significant portion of flights during the said period. The airline either continued to sell tickets or delayed cancellation notifications for about 70% of the cancelled flights, causing potential inconvenience and financial strain for tens of thousands of customers who might have incurred higher costs or faced difficulties in making alternate arrangements.
ACCC Chair Gina Cass-Gottlieb emphasized the vital role of reliable air travel in Australia, noting that flight cancellations can bring about significant repercussions for consumers, including financial loss and emotional distress. The ACCC aims to hold Qantas accountable for its alleged misleading practices that likely disrupted the travel plans of a substantial number of individuals during the period.
As a significant repercussion of the ACCC’s ongoing investigation, Qantas’ CEO Alan Joyce has chosen to hasten his retirement, a move seen as an attempt to bring fresh leadership and perspectives to navigate the airline through its current crises.
Joyce emphasised the need for the company to expedite its renewal processes, showcasing a readiness to foster change and rebuild the company’s tarnished image.
“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,” Joyce said in an official statement.
A Fresh Start Under New Leadership
Set to assume office on 6th September 2023, the incoming CEO, Vanessa Hudson, embodies the hope for a revitalized Qantas. The company is betting on her leadership to steer Qantas towards restoration, regaining the trust and confidence of the public.
Chairman Richard Goyder expressed the Board’s full support for Hudson, highlighting the monumental task ahead to resurrect Qantas’ reputation.
“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,” Goyder said.
The announcement also implies that one of the executive changes announced in June this year will also be accelerated: the appointment of Rob Marcolina as the Group’s Chief Financial Officer in-line with current CFO, Vanessa Hudson’s, transition to the Group CEO role.
The new management, under Hudson’s guidance, is expected to chart a course that not only addresses the concerns raised by the ACCC but also fortifies Qantas’ standing in the industry.
