Qantas Airways Ltd’s new CEO, Vanessa Hudson, is taking bold steps to repair the airline’s tarnished reputation. After less than three weeks in the role, Hudson is addressing issues that emerged under her predecessor, Alan Joyce. Passengers have been increasingly frustrated with flight cancellations, lost bags, and long wait-times on the phone, following the easing of pandemic travel restrictions. The simultaneous record profits only reinforced the perception that customer satisfaction took a backseat to financial gains.
In a recent statement, Qantas announced that it will allocate an additional A$80 million for passenger improvements in the year ending June 2024, on top of the previously allocated A$150 million. The airline plans to enhance its call centers by providing more well-trained workers, increase the availability of air mile seats, and offer more generous support when things go wrong.
However, news of Qantas’s reform efforts hasn’t been well-received by investors. Qantas’ shares fell by as much as 2.3% at the opening of the Sydney Stock Exchange, reaching their lowest level in almost a year. The potential impact on the airline’s profit margins is causing concern among shareholders.
Qantas is facing challenges on multiple fronts, not only from disgruntled passengers. The country’s top court recently ruled that the airline unlawfully dismissed nearly 1,700 ground workers during the pandemic, leaving it open to compensation payments. Additionally, Australia’s competition watchdog has sued Qantas for allegedly accepting payment for seats on flights that were already canceled. The regulator is seeking a record fine. Furthermore, an ongoing parliamentary inquiry is investigating Qantas’ influence on national aviation policy, after the government denied Qatar Airways’ request to operate more flights into Australia following lobbying from Qantas.
In an effort to rebuild trust with customers, CEO Vanessa Hudson issued an apology in a video message. She acknowledged the airline’s mistakes and expressed their commitment to making amends and regaining customers’ confidence.
Despite these challenges, Qantas claims that overall travel demand remains strong. The airline even hinted at possible fare increases in the coming weeks if fuel prices stay at their current levels. Qantas and its low-cost division, Jetstar, foresee transporting more than four million passengers during the September and October school holidays and Australia’s traditional end-of-season sports finals. This is an increase compared to the approximately 3.7 million passengers carried during the same period last year.
In conclusion, Qantas CEO Vanessa Hudson is taking decisive action to restore the airline’s reputation and address long-standing customer grievances. Despite facing criticism and legal battles, Qantas remains confident in the strength of travel demand. As the airline continues to navigate these challenges, it strives to strike a balance between recovering higher costs and maintaining affordable travel options for passengers.
