[cwoodward]

The Australian Government has finally issued legal action against the airline for ‘misleading and deceptive conduct’.

Joye yesterday walked away from the job after 22 years at Qantas saying
“it is clear to me that the company needs to move ahead with its renewal as a priority.”

The AU media having a field day over yesterday’s announcements and it’s no surprise that the Qantas Board and Joyce have concluded that he needs to go sooner rather than later.

There is a feeling in AU that there is more action against the airline and or Joyce yet to come

[CathayLoyalist2]

And Joyce will barely be able to walk out weighed down by the reported AU$ 24 million good bye.

1 user thanked author for this post.

cwoodward

[AndrewinHK]

It’s not an ideal exit, and I am sure he will be perturbed that his tenure ended in such a way. The golden handshake exit, I have no issue with, he presided over the business for 15 years, and he deserves to be compensated for that. It is always open to interpretation on how to judge performance. Viewing it from a business perspective, the share price is up around 130% since he became CEO. He pivoted from a long-haul alliance with BA to a venture with EK, you can argue he pushed competitors out of the Aussie market (which might not be to the benefit of consumers but is good for Qantas) with the demise of Virgin Australia and the blocking of Qatar expansion amongst others, he made difficult decisions in restructuring the business, cutting jobs, and holding out during the industrial disputes, none of those things are easy to achieve. I have met him on several occasions during investor days and found him to be an engaging figure, I am sure he will land on his feet elsewhere (I would put down some money that he may end up as the next CEO of Emirates) a shame he will be remembered for his missteps rather than the stalwart things he did in reshaping the business for the ever-changing aviation landscape, and for shareholders.

1 user thanked author for this post.

LuganoPirate

[AJDC]

“The evil that men do lives after them, the good is oft interred with their bones.” <Shakespeare>

[cwoodward]

Andrew, The fellow was lavishly compensated as I understand and of course normally the ‘golden handshake is a reward is for a job well done.
Was it ?
To me and most in Australia it appears… not.

[AndrewinHK]

Again Cwoodward it entirely depends on how you are judging success. Most executives are incentivized to drive stock performance, as this benefits not only the business, but its investors, Mr Joyce achieved that goal. Since 2008 the stock price is +130%, compared to say CX which is +30%, so in that sense at least it is a job very well done.

[esselle]

I would imagine that the exit package is purely a reflection of what his contract entitles him to, no more or no less. Measure of success or failure in arriving at the number is determined within whatever boundaries his contract contains.

The ultimate measure of success or failure, though, is that he appears to have been given the boot.

1 user thanked author for this post.

cwoodward

[AndrewinHK]

Esselle I see it a bit differently, given he was due to step away in November, I think this was likely a decision he made himself. Australia can be a brutal place once the media starts to pile on you, as many an Aussie PM has found over the years. The PR had in recent weeks become a nightmare, I think in the best interests of the business, which I think you can make a case he has always had, perhaps sometimes too vigorously and to the detriment of passengers, what extra could he genuinely achieve in 2 months, best to hand the baton now, have a break and prep himself for whatever his next role is.

[SimonS1]

Every time I think of Alan Joyce I chuckle and have a look at that cream pie video on YouTube.

1 user thanked author for this post.

Jacob

[AMcWhirter]

This FlightGlobal post has just appreared on X / twitter.

Qantas mulls clawing back ex-CEO Joyce's payout amid string of controversies: Qantas is considering withholding a portion of former chief Alan Joyce's renumeration, as the airline's chair acknowledges the “acute loss of trust” stemming a string of recent controversies. … pic.twitter.com/I9ZNSPYqOs

— FlightGlobal (@FlightGlobal) September 20, 2023

[Rferguson2]

Regarding QANTAS selling seats on flights that they knew would never operate, the Australian competition authority has now published the airlines defence:

The ACCC contends that Qantas supplies carriage on “particular flights”. Qantas disputes this. The “service” that Qantas supplies is not carriage on any “particular flight” but rather a bundle of rights that includes alternative options to which consumers are entitled in respect of a cancelled flight. Consistently with the provision of that service, by both its pre-contractual statements, and contractual terms, Qantas makes clear to ordinary and reasonable consumers that, while Qantas will do its best to get consumers where they want to be on time, it does not guarantee particular flight times or its flight schedules. Qantas says that, in light of those express statements, the ACCC’s allegations that Qantas, at any time, makes implied or partly-implied representations that Qantas will use reasonable endeavours to operate any “particular flight”, or that any “particular flight” has not been cancelled, are wrong.

Basically, Qantas doesn’t explicitly state that you are buying a ticket on a particular flight.

This is quite a bold and ‘out there’ defence and with the ACCC making it public they are pushing for a huge fine to set an example of this practise to other industry it’s not surprising Qantas is becoming quite desperate.

The court documents are freely available online by googling ‘accc v qantas’.

1 user thanked author for this post.

DerekVH

[Author]

Posts