Alan Joyce, the long-standing CEO of Qantas Airways, has resigned abruptly, accelerating the succession of Vanessa Hudson, the company’s Chief Financial Officer (CFO). Joyce’s unexpected exit comes weeks before his formal farewell was planned at the airline’s annual general meeting.
The resignation also follows the Australian Competition & Consumer Commission (ACCC) launching a legal case against the airline for allegedly selling tickets for flights it had already cancelled.
Vanessa Hudson will assume her role as the CEO effective from September 6, a statement from Qantas revealed. She inherits the daunting task of restoring the tarnished image of Australia’s largest airline. The focus on Qantas’ dominance in Australia’s aviation market has been heightened by regulatory bodies, putting additional pressure on Hudson.
Qantas has been embroiled in a significant scandal that has battered its reputation in recent times. The ACCC sued the airline on August 31, accusing it of continuing to accept money for over 8,000 flights that had been cancelled between May and July 2022.
The regulator has indicated that Qantas allowed these sales to persist for an average of more than two weeks, and in some instances, even beyond a month.
The regulatory body is also alleging that the airline delayed informing ticket holders for more than 10,000 flights that their services had been discontinued. A hefty penalty of over A$250 million (approximately ₹1,340 crore) is being sought if the allegations hold up in court.
Joyce, who served at the helm for 15 years, stated that the recent focus on the airline and past incidents convinced him that it was time for the company to prioritise its rejuvenation.
“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,” Bloomberg quoted Joyce as stating.
Under his leadership, Qantas had seen record-breaking profits, a fact that has only intensified public ire over the current scandal.
Rob Marcolina will be filling in the shoes of Vanessa Hudson as the new CFO of Qantas, as per the September 5 announcement. The airline’s shares showed a marginal rise of 0.5% in early Sydney trading on the day the news broke.
(With Bloomberg inputs)
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Updated: 05 Sep 2023, 08:29 AM IST