Embattled Qantas Chairman Richard Goyder Remains Resolute Amidst Criticism as Consumer Watchdog Takes Legal Action
Qantas Chairman Richard Goyder is standing firm in the face of mounting pressure to step down from his position, as the airline grapples with backlash from consumers and investors. Goyder made his first public comments since the consumer watchdog launched legal action against Qantas, accusing the airline of selling tickets for thousands of flights that did not exist. Additionally, it was revealed that former CEO Alan Joyce received over $20 million in his last year at the company.
Speaking on the ABC’s The World Today, Goyder expressed his confidence in his role, stating that he has the support of the board and major investors. He acknowledged that Qantas had made significant mistakes but emphasized the context of the ongoing pandemic and the airline’s near-insolvency situation. Goyder acknowledged that Qantas had let its customers down and admitted that the company had possibly resumed operations too quickly after COVID-19 lockdowns.
Goyder is set to appear before a bipartisan Senate committee next week, where he will face questioning regarding the federal government’s decision to block Qatar Airways’ request for increased capacity and other controversies surrounding Qantas. Corporate governance expert Mark Humphery-Jenner emphasized that the outcome of the hearing could influence Goyder’s future as chairman.
Various issues have plagued Qantas, including the revelations of Alan Joyce’s $21.4 million annual salary package for the 2022-2023 financial year. The Australian Competition and Consumer Watchdog initiated legal action, alleging that Qantas engaged in false and misleading conduct by advertising flights that had already been canceled. It was revealed that approximately 8,000 flights were still available for sale despite the cancellations. In response, the Qantas board reduced short-term incentive payments for senior executives by 20% due to the negative impact on the company’s reputation.
Compensation claims are also likely to arise from the unlawful termination of 1,700 Qantas workers during the peak of the pandemic. CEO Vanessa Hudson has been directed to enter into mediation with union officials to resolve the case.
Goyder emphasized the need for Qantas to embrace change and strive to satisfy all stakeholders, particularly customers. In acknowledging the challenges faced by the airline, he expressed the importance of humility and undertaking the necessary steps to rebuild trust and confidence.
These developments are seen as crucial in Qantas’ attempts to address the concerns of its customers, investors, and the wider public. The outcome of the legal action and Goyder’s appearance before the Senate committee will undoubtedly shape the future of the airline and determine the effectiveness of measures taken to restore its reputation. As Qantas navigates through turbulent times, it remains to be seen how successfully it can overcome these obstacles and regain public trust.
