Next Qantas CEO: Vanessa Hudson

As someone who moved from a financial background to an operational role myself I’m in a particularly to good position to know what the ‘ivory’ tower expects and what I need to get on with. Delivery.

What ever anyone says of AJ he hasn’t done a bad job and he got the airline through Covid when instantly airlines went from taking in revenue to refunding everyone.

My observation is AJ would front the media and would be interviewed by the ABC news room, more than the CEOs of banks I would suggest. He would try and give a rationale for things of you didn’t agree. Anyone seen banks not increasing interest rates recently, they don’t have to increase them but won’t come put their rationale on slugging the customers.

I don’t think AJ is that bad, sure things could be different with improved outcomes and everyone here I notice has excellent hindsight.

I remember when James Strong was in charge and he didn’t want names on the planes, I guess they finally got him back on the retro roo and no doubt AJ smirked at the one. Was Dixon any improvement?

I’m sure everyone here does their job perfectly, is above reproach and can look back with perfect record.
 
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Other part of me thinks an outsider may have been a better option as I feel QF need to shake things up to build back their brand.

Businesses tend to forgot they are in business to serve their customers (putting aside that the boards job is to bring profit to shareholders for a moment). I feel they have forgotten that their customers matter.

What better person to barrack for the brand than a loyal employee who hasn’t jumped ship in the past but stuck it out through the good and bad.

While customer service is of course important without the blood pumping keeping things in black the services start to get cut to stem the bleeding and it’s all over.

Get the financial fundamentals in order and you have the money to supply the service.

If you do it in reverse the patient is dead.
 
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That's very much rose coloured glasses... Always tempting to look back at years of old and think of the "better times", but need to keep things in context - those better times came at a price. It was a lot more expensive to fly back then. Even late 90s air fares adjusted for inflation are much higher than they are now (for Y) - for example I remember my first trip to LHR in 1995 (as a teenager) cost $1500 on NZ Y. That was an unbelievable price at the time - QF was lots more. In today's money, that's about $3000. Even at the peak fares now that's about the high water mark - I expect they will drop in the next 6-12 months as we're starting to see in the AU-US market (thanks to UA!)

Yes, but it's all relative isn't it?

I wasn't complaining about airfares or things like that. I'm fully aware this is an issue across the industry and slowly things are improving. I'm also aware of the relative pricing back in whatever period one wants to pick - but again, that was all relative to everyone else at the time (and let's not forget the good old two airline policy and even the faux period after deregulation where TN and AN basically were the same price, service etc for domestic...

I am also unsure why you decided to respond to my comment about reasons to be disappointed with QF's performance over the past years (and since this is about Joyce departing, then let's perhaps limit it to his period in charge - so 2008+) with a comment about airfares and service items. I was specifically referring to issues more within the airlines control that have had widespread consequences - the ticketing problems (ongoing with partner rewards and such), poorly trained/equipped customer service agents causing problems on occasion(+ call wait times), the bag issues(yes mostly limited to last year I agree) - but fallout from outsourcing decisions by the company that has lead to those problems - no to mention perception, the general decline in service standards (mostly seemingly cost cutting) - the things that started well before covid, and so on.

I'm not saying NOTHING is good about QF. Plenty is. I'm not saying everything was wonderful X years ago (I still remember J class service transpac on basically recliner seats in the 90's for example).

In fact the "rose coloured glasses" comment was apt because I'm trying to be realistic - that was exactly my point.

(and yes, the massive infusion of UA flying to BNE/SYD and MEL is both a big challenge for QF, but great for capacity and pricing overall which is great. Good on UA for making a very big plunge imo). I guess it helps with an orderbook of 200 787's... :D

QF is still giving out free food & alcohol on domestic flights - AA and BA are BOB in Y. EI is basically a LCC. NZ - the government had to re-nationalise it.

We didn't have domestic J lounges or the high standard international F lounges before AJ.

There's certainly been lows, especially last year - but you can't deny there has been a significant improvement. As I said before, AJ leaves QF in a better state than when he found it.

I never denied that. I'm also not suggesting financially QF is probably in a better place overall. However a brand like QF doesn't just rely on financials.
 
Yes, but it's all relative isn't it?

I wasn't complaining about airfares or things like that. I'm fully aware this is an issue across the industry and slowly things are improving. I'm also aware of the relative pricing back in whatever period one wants to pick - but again, that was all relative to everyone else at the time (and let's not forget the good old two airline policy and even the faux period after deregulation where TN and AN basically were the same price, service etc for domestic...

I am also unsure why you decided to respond to my comment about reasons to be disappointed with QF's performance over the past years (and since this is about Joyce departing, then let's perhaps limit it to his period in charge - so 2008+) with a comment about airfares and service items. I was specifically referring to issues more within the airlines control that have had widespread consequences - the ticketing problems (ongoing with partner rewards and such), poorly trained/equipped customer service agents causing problems on occasion(+ call wait times), the bag issues(yes mostly limited to last year I agree) - but fallout from outsourcing decisions by the company that has lead to those problems - no to mention perception, the general decline in service standards (mostly seemingly cost cutting) - the things that started well before covid, and so on.

I'm not saying NOTHING is good about QF. Plenty is. I'm not saying everything was wonderful X years ago (I still remember J class service transpac on basically recliner seats in the 90's for example).

In fact the "rose coloured glasses" comment was apt because I'm trying to be realistic - that was exactly my point.

(and yes, the massive infusion of UA flying to BNE/SYD and MEL is both a big challenge for QF, but great for capacity and pricing overall which is great. Good on UA for making a very big plunge imo). I guess it helps with an orderbook of 200 787's... :D



I never denied that. I'm also not suggesting financially QF is probably in a better place overall. However a brand like QF doesn't just rely on financials.

You can't say you don't want to talk about air fares getting cheaper and then complain about cost cutting. The two go hand in hand. My point was compared to peer airlines, QF cost cutting doesn't hold a candle to other airlines that are now shadows of their former selves.

I would say all of the gripes you mentioned are covid era. I don't remember issues of hold times, bags going missing, ticketing problems etc pre covid. Nothing of scale at least. We can argue whether they still exist (as I posted earlier, VH thinks they've been fixed) but I think it's a stretch to say they weren't caused by covid.
 
Ok corrected - you're welcome

Should have got in 2015/16-2018/19 when they paid dividends.
Additionally,
AJ engineered massive capital returns via share buybacks which actually had a large component of dividend in it.
In the 2019-2020 55 million share buyback, each share buyback was a $4.37 per share fully franked dividend and a $1.19 capital return = $5.56/share
That also had the effect of increasing the relative value of the remaining shares which goes back to the first point

Ostensibly, the share buyback was to manage "shareholder capital". So one one level the capital return represents excess capital that could not be deployed efficiently (economically) One would argue that it could have been used to underwrite a newer fleet but thats another story. However during the Rona19-21 shareholders were not tapped on the shoulder for capital. Why? because that would dilute the share price and AJ's haul

For me, shareholder benefits should come as a result of efficient and proper company management, not financial wizadry.
Yes

Pretty standard for any CEO where share value is linked to exit package to make sure there is no dilution of the spoils. Why spend on new planes or staff
 
I'm happy to see the back of AJ, and I think that Vanessa should be given a chance - she knows how Qantas used to be and I think that she will want to get it back to there.
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Does that mean Virgin should keep their ear to the ground to see who is leaving and offer them a position.
They did that when AJ was appointed - I'm not sure that VA was totally happy with the outcome.
 
You can't say you don't want to talk about air fares getting cheaper and then complain about cost cutting. The two go hand in hand. My point was compared to peer airlines, QF cost cutting doesn't hold a candle to other airlines that are now shadows of their former selves.
I guess you're referring to other comments. I wasn't complaining about fares. I did write that some people out there have blamed Joyce in particular for high air fares and noted that's ridiculous - that was really the only thing I commented about fares tbh. I'm not quite sure why the focus on this tbh.

As for cost cutting - cost cutting isn't only related to income from airfares o course. For example, outsourcing under the wing functions at domestic locations (a real red button issue for many), is about the company bottom line for sure. Of course it's not just QF that go through the insourcing/outsourcing merry-go-round - it happens in IT in a very cyclical nature I've noticed over the years. Anyway that's just an example - and those decisions have absolutely been made with an eye to the then current situation of covid (where there was bugger all revenue of course) but others have been much longer in the making.

I would say all of the gripes you mentioned are covid era. I don't remember issues of hold times, bags going missing, ticketing problems etc pre covid. Nothing of scale at least. We can argue whether they still exist (as I posted earlier, VH thinks they've been fixed) but I think it's a stretch to say they weren't caused by covid.

I would agree on some (as with the outsourcing example I mentioned) but others have been much longer term. I mentioned IT above - the IT situation has been poor for LONG before covid. Functionality of peers over say the last 10 years have gone well past QF and more the point mostly just work. Is UA,AC , AA, VA, SQ or any of the others perfect? No. Are many of them better? oh yes.

but more to the point we've long had to put up with problems caused by real kludges to make work - take flight credits as a prime example. How difficult are those (and travelpasses still do not seem to be a default despite their introduction a few years ago - and they are great by the way). Look at the fact that you have to use one or another search engine to book things on the website, and they're not always consistent. Look at the lack of many partner reward availability online(if it's there I mean) - some others can book just about all partners directly and without issue and manage the bookings all online or via app as it's supposed to be. Why do some even QF only bookings go into a ticketing black hole (a.k.a the far queue) and require manual intervention? so on and so forth. This has been going on for a very long time. Have there been improvements over time - yes, there's been some things fixed, some functionality added and so on - but some very major, well known issues, have been those for a very long time with seemingly little action to us as customers. However go through this forum and look at all the "is the website down again?" type threads? or the random errors when doing searches or trying to book tickets. We all can accept things go wrong from time to time - but with QF it's become a new normal and many of us accept these things as part of the deal.. learn to work with it or be patient (or go elsewhere) when really they shouldn't be - or at the very least to be a very low incidence. Tie in to what agents get to work with, including CS offshore where clearly they are not enabled (or possibly empowered) to fix seemingly simple things - or what should be - and I wonder how much of this is related to technology as much as training. I saw just today a P1 member in a forum commenting that they had not gotten their passes in their account as usual and chasing up for weeks as they wanted to gift to traveling family to use Flounge. Seemingly noody within CS, VIP Team or whoever could apparently sort this out over a long course of time, and this member is left without the ability to do what they wanted with their entitlement. Surely a simple thing to resolve.. but apparently way too hard. why?

That's just one area that is core to QF's operations that has seemingly systemic issues. There are many others - customer service training (fine to outsource your call centres if you will, but not when they can cause more problems for some by poor information, screwing up booking changes and so on - and sure, per x thousand calls, the problems caused may statistically be small - but again look here for so many stories of problems). Every poor experience adds to bad impressions, and those messages spread. It goes to reputation.

Yes, VH thinks things like the performance issues have largely been fixed (must not have seen the 380's OTP recently :p ) and things are going grea - if that's the general view of the CEO-elect, then this is a big worry imo if they can't recognise there are ongoing issues that affect real paying customers. One can pull examples of things that are better to prove a point sure (eg bag delivery) but there are other things that have been problematic for far longer than covid, and if they can't see that these are real then things will bubble along as they will I guess.

And I won't repeat my comments about staff morale and treatment I made earlier.

Look, don't get me wrong, QF in the main run a pretty reliable service. I have no concern getting on a QF aircraft and have a reasonable idea of what I'll get service wise. That's fine. Where things go wrong at many steps of the travel experience - from booking to travel - it's where the airline needs to improve in many areas - by sorting out things like technology so booking issues don't occur in the first place, so that a change to a rewards booking doesn't cancel out due to non ticketing etc, and that pax feel looked after when things go badly.

It's fair to blame the pandemic for some issues - specially with how much money QF (as with all other airlines bar probably QR) were leaking for 2+ years and that has had a huge impact on financials and the ability to do many things that have probably been on the to-do list.. but there are other things and problems that have been brewing for far longer imo.
 
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Where things go wrong
Ive said before..
what defines an organisation is not their ability to be exceptional in the routine but the ability to be exceptional in the exceptions. The delays, cancellations, stranded aircraft and passengers, the overbookings, the diversions.
The empowering of the employees to sort out the exceptions at the coalface - give them the power to help the customers. It is the one thing i see time and time again - if employees are given the tools to fix a problem, they will fix it and the customers are happier for it.
Reduce the need for customers to chase the airline, it should be the other way round. turnaround email within a day.

Basically put the humanity back into the airline.
 
I guess you're referring to other comments. I wasn't complaining about fares. I did write that some people out there have blamed Joyce in particular for high air fares and noted that's ridiculous - that was really the only thing I commented about fares tbh. I'm not quite sure why the focus on this tbh.

As for cost cutting - cost cutting isn't only related to income from airfares o course. For example, outsourcing under the wing functions at domestic locations (a real red button issue for many), is about the company bottom line for sure. Of course it's not just QF that go through the insourcing/outsourcing merry-go-round - it happens in IT in a very cyclical nature I've noticed over the years. Anyway that's just an example - and those decisions have absolutely been made with an eye to the then current situation of covid (where there was bugger all revenue of course) but others have been much longer in the making.



I would agree on some (as with the outsourcing example I mentioned) but others have been much longer term. I mentioned IT above - the IT situation has been poor for LONG before covid. Functionality of peers over say the last 10 years have gone well past QF and more the point mostly just work. Is UA,AC , AA, VA, SQ or any of the others perfect? No. Are many of them better? oh yes.

but more to the point we've long had to put up with problems caused by real kludges to make work - take flight credits as a prime example. How difficult are those (and travelpasses still do not seem to be a default despite their introduction a few years ago - and they are great by the way). Look at the fact that you have to use one or another search engine to book things on the website, and they're not always consistent. Look at the lack of many partner reward availability online(if it's there I mean) - some others can book just about all partners directly and without issue and manage the bookings all online or via app as it's supposed to be. Why do some even QF only bookings go into a ticketing black hole (a.k.a the far queue) and require manual intervention? so on and so forth. This has been going on for a very long time. Have there been improvements over time - yes, there's been some things fixed, some functionality added and so on - but some very major, well known issues, have been those for a very long time with seemingly little action to us as customers. However go through this forum and look at all the "is the website down again?" type threads? or the random errors when doing searches or trying to book tickets. We all can accept things go wrong from time to time - but with QF it's become a new normal and many of us accept these things as part of the deal.. learn to work with it or be patient (or go elsewhere) when really they shouldn't be - or at the very least to be a very low incidence. Tie in to what agents get to work with, including CS offshore where clearly they are not enabled (or possibly empowered) to fix seemingly simple things - or what should be - and I wonder how much of this is related to technology as much as training. I saw just today a P1 member in a forum commenting that they had not gotten their passes in their account as usual and chasing up for weeks as they wanted to gift to traveling family to use Flounge. Seemingly noody within CS, VIP Team or whoever could apparently sort this out over a long course of time, and this member is left without the ability to do what they wanted with their entitlement. Surely a simple thing to resolve.. but apparently way too hard. why?

That's just one area that is core to QF's operations that has seemingly systemic issues. There are many others - customer service training (fine to outsource your call centres if you will, but not when they can cause more problems for some by poor information, screwing up booking changes and so on - and sure, per x thousand calls, the problems caused may statistically be small - but again look here for so many stories of problems). Every poor experience adds to bad impressions, and those messages spread. It goes to reputation.

Yes, VH thinks things like the performance issues have largely been fixed (must not have seen the 380's OTP recently :p ) and things are going grea - if that's the general view of the CEO-elect, then this is a big worry imo if they can't recognise there are ongoing issues that affect real paying customers. One can pull examples of things that are better to prove a point sure (eg bag delivery) but there are other things that have been problematic for far longer than covid, and if they can't see that these are real then things will bubble along as they will I guess.

And I won't repeat my comments about staff morale and treatment I made earlier.

Look, don't get me wrong, QF in the main run a pretty reliable service. I have no concern getting on a QF aircraft and have a reasonable idea of what I'll get service wise. That's fine. Where things go wrong at many steps of the travel experience - from booking to travel - it's where the airline needs to improve in many areas - by sorting out things like technology so booking issues don't occur in the first place, so that a change to a rewards booking doesn't cancel out due to non ticketing etc, and that pax feel looked after when things go badly.

It's fair to blame the pandemic for some issues - specially with how much money QF (as with all other airlines bar probably QR) were leaking for 2+ years and that has had a huge impact on financials and the ability to do many things that have probably been on the to-do list.. but there are other things and problems that have been brewing for far longer imo.

I'm not going to disagree that QF IT needs a lot of improvement (you didn't mention IT in the post I replied to - I would have agreed with that).

I bring up air fares (actually being historically low, not high - apart form this temporary post covid surge) as one of the main motivators for the cost cutting. My point was the customer (Y in particular) have benefited from the cost cutting as international travel continues to become more affordable (again - excusing the temporary surge).

I mean compared to EK - 15 years ago they were the bee's knees. Now they are a shadow of their former selves falling way down the pack.

15 years ago we thought we might not have an international airline. I never lose sight of that, and it's not hyperbole (nearly happened again in 2020).

So yes, let's hope they put some focus on improving the IT - no arguments there.
 
Really yeah OK I didn't bring up IT in my earlier post. the things I did bring up in all my posts were examples and in no way a complete list. There are probably problems or issues other pax have that I don't experience due to status or just luck.

And sure, QF is not perfect. Neither is any other airline. Foolhardy to think that of any organisation.

My overall point was more to suggest that there are numbers of ongoing, over years (more than covid) problems with the airline that don't seem to have been improved. I just picked some examples I could think of.

So the CEO-Elect has much on her plate going forward. I agree with others who have suggested time will tell. She could either put her 28 years of experience (which includes the Before-Joyce times) with THIS company to good use and take the chance to hopefully create her own cultural reforms and drive company change for the better - or she may not. We'll all wait and see :)

I do wish her luck for sure. I know I wrote earlier I was disappointed by the decision. Maybe it's the right one - but we won't even get a glimpse of this for many years yet so we'll just have to see. I'm certainly not going to deride her until she gets the proper chance to put her imprint on the company and we get an idea of what her vision is.

(and potentially if other senior dominoes fall - as mentioned for example folks like Wirth are probably not going to want to stick around having missed out - then that too can create opportunities).
 
Promoting a CEO from within does not accord with 'best corporate practice', but there are plenty of times its been appropriate.

In this case, not only an internal candidate, but a veritable Qantas 'lifer'. Wonder how that rates in the 'diversity' scale?

Promotion from within is the Board basically saying "we don't want anything to change - we'll know what we are getting. The newie won't be able to say that we've made mistakes in the past, as they were part of it." One former Qantas employee here has said that Alan Joyce basically surrounded himself with sycophants - if you didn't agree with the boss - out.

So, based on that, I think we won't see much change from the new CEO - although not surprisingly, she has distanced herself a bit from Alan Joyce. I think there will be some initiatives to sooth customers. There's nothing she can do about the poo-sandwich of a balance sheet she's inheriting, so a bit of extra expenditure on staff and customers (as opposed to constantly gouging them) won't make much difference to the bottom line.

From grounding the fleet mid-taxi in 2011, thus massively screwing its customers, to the further screwing customers by under-investment (new planes, IT) throughout his term and the shameless gouging recently, I say good riddance to Alan Joyce - the Sol Trujillo of the aviation world. Any shareholder who sheds a tear for his departure might want to look a bit into the future; its not hard to produce a huge profit with short-term slash and burning, then exit. And anyone who thinks things are just rosy are fooling only themselves.
 
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Im going to do SQ very soon, so will see if the grass is greener over there.
Business or economy?

Economy in their A350 with severe preclined seats + added recline are awful although we did get an A350 SIN-BNE 2 weeks ago that wasn't uncomfortable.

I'm looking at possible additional trip to Thailand in August/September and will more than likely go via SYD and pay extra to get to/from SYD to avoid SQ A350.

That's how much I hate the SQ A350 economy class experience.
 

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