Qantas asks executives to step up

QANTAS Airways has stepped up its internal succession planning for life after chief Alan Joyce by rotating its senior executive team, including handing fresh roles to his two most likely heirs apparent.

Gareth Evans will become Jetstar chief.

QANTAS Airways has stepped up its internal succession planning for life after chief Alan Joyce by rotating its senior executive team, including handing fresh roles to his two most likely heirs apparent.

Jetstar chief Jayne Hrdlicka will head Qantas’s loyalty and digital ventures division after running the budget carrier for the past five years.

She will be replaced by international and freight boss Gareth Evans, with the changes effective from November.

After last week unveiling the second-highest annual profit in the airline’s history, Mr Joyce reiterated he had no plans to retire any time soon, especially as the airline was looking to completely rework its international network with new super long-haul aircraft.

But with the airline’s 100th anniversary approaching in 2020 and the prospect of a new director — retiring Wesfarmers chief Richard Goyder, succeeding Leigh Clifford as chairman in due course — the Qantas board is seeking to test its best internal candidates to succeed Mr Joyce by giving them new challenges.

Mr Joyce yesterday said the executive team had led the carrier through a major turnaround into a phase of im­provement and innovation.

Jayne Hrdlicka will head Qantas’s loyalty and digital ventures.

“This is also about making the best use of the considerable leadership talent at the top level of our organisation,” Mr Joyce said.

Mr Evans was previously Qantas chief financial officer.

Freight, catering and airports division manager Alison Webster will now head up that division, while freight will come under the management of domestic business chief Andrew David.

The changes came as Qantas shares nosedived almost 6 per cent after investment bank JP Morgan said the airline was facing persistent weak domestic air travel and challenging international conditions. Qantas shares had rallied to their highest level in almost 10 years on Friday but JP Morgan yesterday warned the stock was too expensive.

“To justify the current share price, we estimate further domestic fare increases in the order of 10 per cent (holding into perpetuity) are needed,” the report by analysts Guy Bunce and Peiting Liang said.

“Given the persistent headwinds from a weak domestic air travel market and challenging international conditions, we recommend investors take profit.”

Qantas shares closed down 5.7 per cent at $5.68.

The Australian