Critics line up as Alan Joyce’s long goodbye draws to an end

The long goodbye by Qantas boss Alan Joyce has some counting down the days to when he exits, after 15 tumultuous years at the top.

When Alan Joyce departs Qantas later this year after 15 years as CEO, there will be few tears shed – by customers or colleagues.

Although he has maintained a team of loyal executives and kept Qantas flying, there is an almost palpable excitement about his departure.

At Thursday’s results presentation CEO-designate Vanessa Hudson sounded joyous when Mr Joyce noted “this is my last financial year reporting. Vanessa will be taking over and she’s very much looking forward to it …”

Ms Hudson jumped in with an enthusiastic “absolutely, yes” as the clock ticked down on Mr Joyce’s long goodbye.

Since early May when Ms Hudson was announced as Mr Joyce’s successor, the chief financial officer has been cast in the difficult role of understudy.

Whereas Mr Joyce had to wait just a few months to step into Geoff Dixon’s shoes in 2008, Ms Hudson will have served over six months in the wings by the time she assumes the top job in November.

The strain was showing at the results, with Ms Hudson clearly ready to take the reins from Mr Joyce, who some think has already stayed well beyond his ­welcome.

Former Qantas chairman Leigh Clifford said that perhaps the handover “could’ve been a bit quicker” but he remained a strong supporter of Alan Joyce.

“I think Alan’s steered Qantas through some challenging times. He’s made the airline much more competitive and it’s a very competitive industry,” he said.

“I know everyone wants lower prices, better service on newer planes, but it’s a very competitive industry and there’s a lot of options for travellers.”

He said Ms Hudson was a great choice to succeed Mr Joyce, who would’ve stepped down earlier but for the pandemic.

Qantas chief executive Alan Joyce announces the airline’s full-year results. Picture: Christian Gilles

“I think people have been a bit too quick to criticise (Alan Joyce),” Mr Clifford said. ‘‘I don’t think he was clinging (to the job) but he felt he had to ensure the business was on firm footing because it was a hell of a challenge during Covid.”

Unsurprisingly, Transport Wor­kers Union national secretary Michael Kaine held a different view of the CEO, who famously grounded the airline in 2011 and locked out employees.

He said there was a “real sense of excitement” about Alan Joyce’s upcoming departure, among employees and customers.

“Alan Joyce has really made an art form of hiding behind human shields. I mean it was not him, it was (Qantas Domestic CEO) Andrew David who made the illegal outsourcing decision. It wasn’t his decisions that caused chaos at airports, it was passengers who weren’t match-fit,” Mr Kaine said. “Workers and now great swathes of the Australian public will be clapping him as he exits not in thanks but in absolute relief.”

He said Mr Joyce had cast an “enormous shadow over aviation” and the union was hopeful Ms Hudson could break out of that, and work with them.

“We’ve barely seen Vanessa Hudson at all, even though she’s been at Qantas for almost 30 years,” said Mr Kaine.

“The question of course is whether she can come out of that shadow and bring the spirit of Australia back to Qantas.”

Flight Attendants Association of Australia Teri O’Toole agreed that Ms Hudson represented a great opportunity for a reset at Qantas.

She said Mr Joyce had customers and workers offside through the sacking of ground staff during the pandemic, the handling of flight credits, and the enormous rebound into profit after significant government help.

Ms O’Toole also pointed to the recent announcement by Mr Joyce, flanked by the Prime Minister, that three Qantas planes would carry the “yes23” campaign logo ahead of the voice referendum.

While the FAAA was a firm supporter of the yes vote, Ms O’Toole said they feared the “Joyce stunt” would do more harm than good.

“Perhaps Alan Joyce could have allowed Vanessa Hudson to be the face of the Qantas position,” said Ms O’Toole.

“The unpopularity of Mr Joyce and Qantas in the general public currently may have an adverse reaction.”

One group less likely to applaud Mr Joyce’s departure is shareholders, who were in line to gain the most from Qantas’ strong return to profit in 2023.

The announcement of a record $2.47bn underlying profit was accompanied by news of a $500m share buyback, on top of the return of $1bn through share buybacks in the last year.

Ms Hudson was adamant they could still do better. “(The result) is not as good as it gets,” she said. “The future is exciting.”

Analysts were not so confident, warning that increased competition among airlines would push fares down — and then there was the matter of Qantas’ very large order for much-needed new aircraft.

“We think this is about as good as it gets for Qantas,” said Morningstar analyst Angus Hewitt.

Beyond the next financial year, Mr Hewitt said fleet expansion, replacement and refurbishment would absorb “meaningful cash flow and constrain returns to shareholders”.

Australian Shareholders Association CEO Rachel Waterhouse also warned of tough times ahead for Qantas.