Qantas chair Richard Goyder faces fresh threat over use of consultancy
Richard Goyder faces a fresh battle after a leading industry group called for his dismissal over a board decision to engage Boston Consulting Group.
Qantas chairman Richard Goyder faces a fresh battle to keep his job after a leading industry group called for his dismissal over a board decision to engage Boston Consulting Group to reset the airline’s relationship with customers.
A letter was sent to Mr Goyder by the Australian Licensed Aircraft Engineers Association on September 13, saying the decision by Qantas’s board to engage the consultant showed directors did not understand the mistakes that had left the airline’s reputation in tatters and led to staff being abused for simply wearing the uniform.
The letter – copied to new chief executive Vanessa Hudson – ratchets up pressure on the embattled airline amid a surge in unrest from customers and staff after the company posted bumper profits.
Ms Hudson – who ascended to the top job at Qantas two months ahead of schedule, with the sudden departure of Alan Joyce – has promised to restore the airline’s reputation with customers and staff.
But in a sign that tensions remain near boiling point, Steve Purvinas, federal secretary of the engineering group, said Qantas’s decision to use BCG to undertake a key review hinted that not much had changed.
“Engaging BCG says the board neither hear nor understand the problem. The situation is so bad that Qantas employees are being abused on the street for simply wearing a Qantas uniform. If Qantas is determined to fix problems and deliver consistency, you can not engage BCG or other consultations. The bean counters are the problem,” Mr Purvinas wrote in a letter to the Qantas chairman.
“The direction of Qantas must change. If the Qantas board of directors do not understand the problems there must be board room change. If Qantas engages Boston Consulting Group, we call on you to resign your position as Qantas chairman without delay.”
A Qantas spokesman did not immediately respond to requests for comment on the letter.
The revelation of the unrest will fuel pressure on Mr Goyder, who is battling to save his job, and adds to the array of problems facing its newly appointed chief executive.
The High Court last week upheld two previous rulings that the airline’s outsourcing of 1700 workers during the Covid pandemic was unlawful, leaving Qantas staring at a $200m fine and intense pressure for an extensive board clean-out.
The ruling came just weeks after the Australian Competition & Consumer Commission (ACCC) launched legal action against Qantas over allegations it sold tickets in 2022 for flights that had already been cancelled.
ACCC chair Gina Cass-Gottlieb has said the watchdog is pursuing penalties of more than $250m for the “ghost flights” tickets.
Qantas is already facing a class action over flight credits, as well as criminal prosecution in NSW by the state‘s safety regulator for allegedly standing down a health and safety representative during the pandemic.
Qantas denies the ACCC allegations and has rejected suggestions it acted illegally when it stood down the health and safety representative.
Public anger towards Qantas remains high as travel credits, high airfares and extravagant executive bonuses weigh on sentiment towards the once beloved carrier.
In August Qantas posted a record $2.47bn profit, which Mr Joyce defended as in the national interest.
Anger towards Qantas is also a political headache for the federal Labor government, which has had to repeatedly defend its decision to reject a request from Qatar for an additional 21 flights into Australia’s major airports, beyond the 28 slots a week it currently operates under existing bilateral air rights.
The government has struggled to justify the decision, which Opposition Leader Peter Dutton saying Labor was “running a protection racket” for Qantas.
Mr Joyce has admitted lobbying the government against Qatar’s request. He said the international market lacked capacity but allowing Qatar to nearly double the slots would “distort the market”.
Analysts have said allowing Qatar to operate more flights would have put downward pressure on airfares, which remain high for many, though others are willing to pay after travel was disrupted by Covid-19.
