Next Qantas CEO: Vanessa Hudson

[milehighclub]

Just announced

Qantas announces new CEO to take over from Alan Joyce

www.9news.com.au

 

[SydneySwan]

Although I will be delighted to see the back of AJ, I would advise caution as Vanessa is the CFO - I fear that "enhancements" will be imminent.

 

[Hvr]

Alan Joyce to step down as Qantas CEO after 15 years

Joyce will be replaced by chief financial officer Vanessa Hudson in November, putting an end to long-running speculation into the airline’s succession plan.

www.theage.com.au

 

[33kft]

Let's hope this appointment leads to many improvements, although pessimist me wonders if CFO to CEO doesn't cause some concern for where the priorities lie.

 

[Quickstatus]

enhancements

before the fairer and simpler?

Nevertheless I'm prepared to give her a chance.

 

[justinbrett]

I doubt we'll see any significant changes in the near future.

It's easy to run an airline when it's making money - the challenge for the CEO is when that stops.

 

[Chalkie]

If the choices were between the CFO and the CEO, Qantas Loyalty (as rumoured), my view is that the choice made is not favourable to customer interests. QF is likely to continue as an airline delivering shareholder returns (exhibit 1: the share buyback programme announced in August 2022; exhibit 2: dividends; exhibit 3: a focus on profitability and not growth) and not an airline interested in delivering good customer service.

 

[justinbrett]

If the choices were between the CFO and the CEO, Qantas Loyalty (as rumoured), my view is that the choice made is not favourable to customer interests. QF is likely to continue as an airline delivering shareholder returns (exhibit 1: the share buyback programme announced in August 2022; exhibit 2: dividends; exhibit 3: a focus on profitability and not growth) and not an airline interested in delivering good customer service.

You can't look too much at the previous position held to determine her focus - her job before CFO was Chief Customer Officer. She's held just about every position in the company - clearly they were grooming her for the CEO position (and she's worked at QF for 28 years).

 

[siri]

CEO value is always when chips are down and lets see how a cfo run as a ceo, major contradiction but hope she deliver as a ceo and bring back qantas as a real airline with customer as the king..

 

[JohnK]

In my opinion CFO->CEO transition is not necessarily a good thing for the customer. Yes give them a chance but giving them a chance may mean a minimum 5 year tenure.

Customer focus/service has to be the most important thing in running a business. Get that right and the profits will come.

 

[Blackadder]

It will be interesting to see what this entails for QF , its shareholders and its customers.
We are kidding ourselves if our interests are placed above those of the shareholders.
The acquisition of the 787-900, will open up more route opportunities, let’s see if QF take that opportunity to expand.

 

[justinbrett]

In my opinion CFO->CEO transition is not necessarily a good thing for the customer. Yes give them a chance but giving them a chance may mean a minimum 5 year tenure.

Customer focus/service has to be the most important thing in running a business. Get that right and the profits will come.

She's spent her entire working life at QF, with only the last 4 years as CFO. She's also been the Chief Customer Officer, Executive Manager Products & Services and General Manager Inflight Services.

I actually think she must have a strong personal loyalty to the QF brand having spent her whole life working here - which is much better for customers than someone parachuted in. She's worked there double the time that AJ has.

 

[JohnK]

I actually think she must have a strong personal loyalty to the QF brand having spent her whole life working here - which is much better for customers than someone parachuted in. She's worked there double the time that AJ has.

Apologies but the CFO comment was general.

I really do hope she does a great job and focuses on the customer. Personally I don't care if share price and profits go up but at the same time award availability dries up, status benefits erode and general airline performance drops.

Joyce is the perfect example of allowing someone to stay in a job well past their use by date. Should have been gone a long time ago not in another 6 months.

 

[Quickstatus]

customer as the king

Customer demands, shareholder demands, government/regulator demands, employee demands, competition demands are essentially mutually exclusive.

She's spent her entire working life at QF....

Sure, but that just indicates she know how QF is currently run - from the inside. Sometimes a different perspective is required depending on the circumstances.
Obviously the Board is in no rush to bring in anyone new for a fresh look and maybe steer the ship in a new direction. This appointment is the Board saying "steady as she goes" and I think a tacit endorsement of AJ's time at the helm.

she must have a strong personal loyalty to the QF brand

...loyalty to the QF brand as envisaged by AJ, otherwise she would have been out the door quicker than AJ can drop a DSC promotion.

In any case a change is a change.

 

[justinbrett]

Sure, but that just indicates she know how QF is currently run - from the inside. Sometimes a different perspective is required depending on the circumstances.
Obviously the Board is in no rush to bring in anyone new for a fresh look and steer the ship in a new direction. This appointment is the Board saying "steady as she goes" and I think a tacit endorsement of AJ's time at the helm.

And why wouldn't they. QF is making huge profits.

Say what you will about AJ - but he's leaving QF in a much better place than when he found it. In his early years they were talking about the possibility of QF becoming a domestic only airline - or the merger with BA to stay afloat.

 

[Quickstatus]

QF is making huge profits

...Currently but I think that the current economic situation remains an artificial scenario boosted by massive amounts of cash in the economy.
Make hay while the sun shines I suppose

talking about the possibility of QF becoming a domestic only airline

Exactly
There is a thread somewhere about QF going under.

Customer can never be king - businesses fall over because of this. While currently the shareholders and AJ is king, I would like to see their employees and customers treated better.

 

[justinbrett]

...Currently but I think that the current economic situation remains an artificial scenario boosted by massive amounts of cash in the economy.
Make hay while the sun shines I suppose



Exactly
There is a thread somewhere about QF going under.

Customer can never be king - businesses fall over because of this. While currently the shareholders and AJ is king, I would like to see their employees and customers treated better.

Although one would argue the best thing an airline could do for its frequent flyers is stay in business.

Otherwise bye-bye points and oneworld lifetime status.

 

[Quickstatus]

bye-bye points

Interestingly there has not been commentary about QF points (here or in mainstream) being at risk even as Rona19-21 ate through their cash and assets

 

[RichardMEL]

My view:

I am disappointed.

I mean no disrespect to Vanessa Hudson - I know nothing about her - and she may yet surprise.

What disappoints me is less about who she is, but that they've recruited from within the existing culture Joyce has created and long run. She's embedded in that and has been for ages.

Now, she may have sat there in the background of the senior team with a vision to change this and change that but honestly I don't expect that.

And what is the message to staff? those staff who have been cut and treated poorly(or seem many who have been).. so if I were staff I'd think "so great, another finance person-like Joyce-from up the top takes over. What's going to change for me?" and , until Vanessa changes anything and actually executes some real change for the staff, why would they feel any enthusiasm for what they're doing or loyalty to the company.

This may be more perception than reality, but if any company needed a real fresh set of eyes and vision into that culture and to (hopefully) push for significant change, then it's probably QF. And this choice doesn't tell us that this is going to happen.

Richard Goyder seems to like the status quo. He literally just did the same thing with the AFL (where he leads the board) and appointed the new CEO from within after "an exhaustive worldwide search" - now tbh the AFL is very different as they're doing pretty well and all they really seemingly need is a "steady as she goes" hand at the til so that appointment works pretty well for them. QF is a very different beast though.

so right now I am disappointed but have hope that Vanessa will do far more to improve the culture, staff morale and situation, and that will flow through to customer experiences. Until she does though, I remain ambivalent towards the future.

time will tell, and nobody probably will see any kind of real change (if there is to be any) until probably FY24-25 at the very least.

 

[ric_melb]

As a Qantas shareholder I am bemused by comments about the company being run for the benefit of the shareholders.
Apart from company directors being responsible to shareholders, they also have other responsibilities to customers, the public, and governments. This can be a difficult balancing act. Everyone will have their own opinion as to how Qantas has managed.
As a shareholder I would point out that we have not had any dividends from Qantas since September 2019.