10 moves Qantas needs to make to win back customers

After years of public relations woes and now a fiery Senate inquiry, Qantas needs to make these 10 changes if it’s going to give Aussies much to sing about.

Qantas called itself the “spirit of Australia” but the marketing is no longer matching the product.

The airline’s new chief executive Vanessa Hudson, chairman Richard Goyder and its top lawyer Andrew Finch fronted a Senate inquiry this week.

Politicians from across the spectrum were furious at Qantas as passengers demanded change at the airline that controls more than 60 per cent of the nation’s air travel market.

This masthead has spoken to passengers, unions, shareholders and major customers about what the airline needs to fix to restore confidence in the national carrier.

Alan Joyce was at the helm of Qantas Airways Ltd for much of its woes. Photographer: Peter Boer/Bloomberg

1. Run flights on time, and reliably.

The Qantas network was late on almost one in four flights in August, while 3.5 per cent were cancelled. Customers expect premium service from a premium airline.

There have been calls for Australia to introduce European-style fines of $415 for when a flight was delayed on top of a full refund.

Qantas should avoid the need for new laws but just simply land planes on time, while maintaining its safety standards.

2. Deliver bags to the same place as passengers.

Qantas has plans to roll out a new app that allows travellers to track their bag while it’s on the plane.

The airline first used RFID technology in its bag tags in 2010, but it has been slow to update. Apple Air Tags, which can track bags in real time, were first released two years ago.

The technology exists, Qantas needs to fast track its scheme, which it promised in May was coming by the end of this year.

3. Replace chairman Richard Goyder, refresh the board.

Qantas pilots, shareholder groups, and unions say it’s time for Mr Goyder to go. But Mr Goyder, who also runs the AFL and Woodside Energy, is digging in.

Mr Goyder appeared in front of a fiery Senate committee in Brisbane this week, where he said he was holding his ground.

“I’ve navigated a company through the Global Financial Crisis, chaired Qantas through the most existential crisis we’ve ever had as an airline, and right now, the major shareholders and the board feel that I’m the best person to chair the board to navigate us through the current situation,” he said.

Qantas domestic in Melbourne was the site of much turmoil during the pandemic. Picture: NCA NewsWire / David Crosling

4. Refund passengers easily

Qantas had put an expiry date on $570m worth of travel vouchers for flights cancelled because of the Covid-19 pandemic.

Ms Hudson, who was previously the airline’s top bean counter, had been planning to claim that as part of the company’s profit next year.

In one of his last acts as Qantas chief executive, Mr Joyce was forced into an expensive, red-faced backflip. “We know the credit system was not as smooth as it should have been. And while we’ve improved it recently, and extended the expiry date several times, people lost faith in the process,” he said last month.

“These credits and vouchers will never expire.” But, it seems no-one told Qantas’ online team, who you would think, only had one job. The airline’s website said this week: “If you don’t use your Flight Credit before the expiry date, the Flight Credit value will be forfeited.” Qantas customers can also claim a cash refund by calling:

1300 668 885.

One in four Qantas flights were delayed in August. Picture: NCA NewsWire /Brendan Beckett

5. Cancel the Chairman’s Lounge membership for the PM’s son

Giving university student Nathan Albanese the keys to the Qantas Chairman’s Lounge, usually reserved for big spending corporate chiefs, was a bad look.

The invitation-only lounge is one of the most sought after and secretive clubs in the country. Many politicians get access, but giving the Prime Minister’s son access to champagne and flight upgrades does not pass the pub test.

6. Stop ripping off customers, clear way for Qatar’s extra flights

Qantas made a $2.47 billion profit in the latest financial year, mainly off the back of eye-wateringly high fares.

Qantas lobbied the Federal Government to block Qatar Airways from adding 28 flights into Australia each week.

Flight Centre chief executive Graham Turner told this masthead that Qatar’s extra services would reduce flight prices by as much as 15 per cent.

Qatar was selling return flights from Sydney to London on its website at $3514 for travel in October – meaning prices would drop by $527, if there were more services.

“It should be reviewed, for example the Middle East capacity to Europe is only at 75 per cent of pre-Covid levels and the demand really exceeds that, and that’s why the airfares are so expensive,” Mr Turner said.

“We were talking to Qatar in the last few days and if they get given the go ahead they can put flights on before Christmas.

“They have to make some decisions on what they do with some of these planes, it’s the A350 and 777 that fly these routes.

“If Australia isn’t taking them they will go on other routes.”

The airline recently appointed a new chief executive but it’s clear what will change.

7. Pay staff properly, and directly.

Australia’s flight attendants’ union claims Jetstar hosties hired in Bali are paid as little as $2 an hour. The discount airline is owned by Qantas.

The airline also pays different rates for Qantas staff. A hostie employed by Qantas gets $56 an hour, those on the payroll of a subsidiary company get paid $20 an hour for doing the same job.

Pilots are also on different rates depending on whether they are employed by Qantas directly or by its subsidiary Qantaslink.

Senator Tony Sheldon this week accused Qantas of using “loopholes” to pay workers less.

8. Hire the 1700 baggage handlers sacked illegally

Qantas outsourced baggage handlers during the pandemic. This month the High Court found it was illegal in a unanimous decision. Mr Goyder “deeply apologised” to the baggage handlers, but said the airline had “sound financial reasons” because of the Australian borders being shut down because of the Covid-19 pandemic. Mr Sheldon said Qantas was only apologising “for getting caught”. The baggage handlers are likely to sue for a multimillion payout.

9. Fly planes, not causes.

Qantas is an airline, not a social justice organisation. The airline should campaign on its safety record.

Nationals Senator Bridget McKenzie grilled Qantas general counsel Andrew Finch this week over whether the airline’s support for the Yes campaign in the upcoming Voice referendum was a “quid pro quo” arrangement for the government’s decision to block Qatar’s request for extra flights into Australia.

10. Ditch the “still call Australia Home” commercials.

The white shirted choirs singing Peter Allen’s famous tune used to make Australians feel good.

Now they are just a reminder of how bad it is that we no longer have a national carrier we can be proud to sing about.

Originally published as 10 moves Qantas needs to make to win back customers