Qantas directors’ travel perks ‘standard practice’ for airlines, says new chair John Mullen

Qantas chair John Mullen says the lavish travel perks awarded to his directors are ‘standard practice’ in the airline industry. It’s a good gig, and even better with some overseas carriers.

A board seat on an airline could be one of the best jobs in the world, judging by the perks that come with such a position.

Not only are directors paid handsomely for their contribution — which usually amounts to a monthly meeting — the travel entitlements continue well beyond those years of service.

Qantas says its travel entitlements for directors – including multiple free overseas and domestic trips a year for the entire family – are “mid-range” compared to the benefits other airlines provide board members.

Qantas benefits include three international return flights and nine domestic flights a year for the director, their spouse and any children under 26, and then upon retirement one overseas return flight and three domestic flights a year, for the same amount of time as which they served on the board.

In the case of director Todd Sampson, the advertising guru is looking at 10 years of free travel for himself and his family as he approaches a decade on the Qantas board.

Certainly generous, and undeniably valuable – given the flights can be taken in the “highest class available” on a particular Qantas service — the perk would be worth tens of thousands of dollars to any ordinary traveller.

Asked to justify such benefits for directors at the Qantas AGM, chair John Mullen said they were consistent with other airlines.

“It doesn’t necessarily cost the company anything other than FBT (fringe benefits tax) which is paid for by the company,” he said.

“We have reviewed it, it is standard in the industry and directors’ compensation is actually lower than other companies of this size, which takes into account the fact that those benefits actually come in on top of their salary remuneration.”

Qantas board member Todd Sampson stands to benefit significantly from a general post-retirement travel policy offered by the airline. Picture: Nikki Davis-Jones

American carriers tended to be even more lavish in their rewards for directors, often providing free travel for life.

In the case of Qantas joint-venture partner American Airlines, directors and their immediate families are entitled to complimentary personal air travel, as well as 12 round-trip passes for free flights for extended family or friends of the airline director.

Lounge access and top-tier frequent flyer status are also included with those benefits continuing for a lifetime for directors who have served for seven years or more.

Those who serve for under seven years but more than two can enjoy free travel for themselves, family and friends for another five years post-retirement.

United Airlines promises 10 first class return trips a year for directors, their spouses and dependent children, as well as a “United Airlines travel pass” worth $60,000.

The travel pass continued to be provided on an annual basis once the director has left the board, as long as they have served for at least five years.

Delta Air Lines put a $30,000 cap on free travel for directors, their parents, spouse and children, and allow any unused portion to be carried over into subsequent years.

The perk extends into retirement for long-serving directors, the only difference being any unused travel credit does not accumulate.

Low-cost carrier Southwest Airlines came under fire for its “bizarrely generous” benefits for directors, including free travel for the director, their spouse and children, plus 50 free tickets to distribute among friends or other relatives.

Those who have served for 10 years got the same perk for life for themselves and their spouse.

Perhaps the most lavish, however, is Germany’s Lufthansa, which provides board members with a company car and driver, standard concessionary flights for personal travel and insurance premiums for its directors.

Those benefits are on top of some of the biggest salaries in the world for directors — with the base pay for an “ordinary executive board member” set at €860,000 a year ($1.4m), and upon retirement, a fixed annual allocation of €450,000.

Originally published as Qantas directors’ travel perks ‘standard practice’ for airlines, says new chair John Mullen