John Mullen says Qantas’s reputation a long way from being fixed, but change is happening

Qantas chairman John Mullen says ‘change is good for everybody’ as he concedes the airline’s reputation is a long way from being fixed.

Qantas chair John Mullen has revealed the airline’s reputation is a “long way from being fixed” but the right processes are in place and people are sensing change.

His comments follow Monday’s announcement of key board changes including the retirement of long-serving Qantas director Todd Sampson, 18 months before his current term expires.

Mr Mullen did not mention Mr Sampson specifically but said “there comes a time when change is good for everybody”, speaking at the Australian Council of Superannuation Investors conference in Melbourne.

“I’ve worked for two very inspirational leaders in my life, both of whom didn’t know when to stop,” said Mr Mullen, who headed TNT Express and previously chaired Telstra.

He said leaders who stayed too long risked being remembered only for what they failed to achieve in their last few years, rather than the entirety of their career.

“You need to trim the tree when it’s green not when it’s dead. There comes a time for everyone,” he added.

On chairing a company like Qantas, Mr Mullen said there were “almost two parts to the role” given an airline was a notoriously difficult business, but also part of Australia’s iconography.

“There’s a bit of Qantas in everybody; everyone has a view, it’s part of our national identity,” he said.

“You have a huge responsibility for the image of the nation. It sounds a bit corny but I really believe that.”

Todd Sampson will retire from the Qantas board in July after more than ten years of service. Picture: NCA NewsWire / Luis Ascui

From a business perspective, Mr Mullen said there was discipline and reputation, and it was the latter that needed the most attention.

“We’re a long way from fixing it but now we have all the ingredients. We have a humble leader (in Vanessa Hudson) a CEO who leads from the front, no ego, very much a team leader who walks the talk,” he said.

“On Christmas Day, I was home enjoying a beer, she was walking the terminals, talking to staff. I really sense that people think there is a change and we’re heading the right way.”

It was announced on Monday that tech executive Dion Weisler would replace Mr Sampson on the board, bringing a wealth of experience in business and information technology.

Mr Mullen said he valued diversity in the board room and didn’t understand how “diversity couldn’t be seen as a good thing”.

“If everyone thinks and speaks as I do, what’s the use of that? You want people around the board table who come from a different world, who see things from a different lens,” he said.

He said the common perception of boards was that they were a “conspiratorial group” working to maximise salary and bonuses for executives, which could not be further from the truth.

Mr Mullen also took aim at unions for weaponising productivity, saying it was a problem that kept him awake at night.

“Productivity has become a term that’s almost off the agenda. It’s seen as some economic term for business people and unions think it’s a euphemism for cutting wages,” he said.

“We’ve lost that debate altogether. I think back to the days of Paul Keating, Mick Kelty, there was a real agreement that you have to grow the pie, before you start dividing it. Now many awards are made without any attempt to increase productivity. It’s a real noose around our neck.”

His comments come as long haul pilots negotiate a new agreement, following on from deals struck with short haul pilots and “same job, same pay” increases for cabin crew.

Mr Mullen took over from former Qantas chairman Richard Goyder last year, following a scathing governance review which found the board did not stand up to then CEO Alan Joyce.

Originally published as John Mullen says Qantas’s reputation a long way from being fixed, but change is happening