New Qantas CEO apologises to customers and promises to do better starting now

Qantas CEO Vanessa Hudson has spoken up, flagging dramatic changes at the airline to improve service delivery | WATCH

“We recognise things haven’t been where they need to be”: Qantas CEO Vanessa Hudson at Sydney Airport on Friday. Picture: Britta Campion/The Australian

New Qantas CEO Vanessa Hudson has shared how she plans to rebuild the airline’s battered brand, starting with an apology to customers and a clear message that she’s not Alan Joyce.

In her first media interview since taking over the top job following Mr Joyce’s early exit on September 5, the former chief financial officer talked about cultural change, and how she had listened to customers.

“It’s clear we have let them down. We’ve disappointed and frustrated many customers,” Ms Hudson said.

She hoped in the first instance, customers would accept her apology delivered in a video message and then judge her on her actions going forward.

New Qantas CEO Vanessa Hudson in a video apologising for not delivering for customers and supporting staff.

Although she was part of the leadership team that oversaw the mishandling of Covid travel credits, the unlawful sacking of 1700 workers and charging of excessive airfares, Ms Hudson said she was “not the CEO” throughout that period.

“What I would say is I want to be judged by my actions going forward, by what we do and how we behave,” said Ms Hudson.

“I think it’s really important that we recognise things haven’t been where they need to be and that is absolutely what is important for me as CEO, that I don’t take things for granted and continue on the same trajectory.

“That’s what is reflected in the plan that I’ve got and the focus that I’ve got that we invest back into the customer experience to rebuild that trust and reputation.”

In the first instance, Ms Hudson wanted to make it easier for customers to deal with Qantas, increase frequent flyer reward seats and focus on resolving customer issues faster.

She noted they were investing into contact centres, and investigating whether it was feasible to bring more call centres back onshore.

“We also think it’s time to step back and look at how we deliver a better experience and a fairer experience to customers,” said Ms Hudson.

“So for example, a name change on a ticket, we often charge for that, in my view we should look to simplify those things.”

She had not spoken to Mr Joyce since he departed Qantas two months early, days after the consumer watchdog filed legal action alleging the airline sold tickets on thousands of already cancelled flights.

But Ms Hudson revealed she spoke regularly to chair Richard Goyder who was “really supportive” of her focus on and investment in customers.

A sum of $150m had been earmarked for spending on customers this financial year with the understanding more would be invested if needed to “demonstrate to customers we’re hearing”.

She said investors were also in favour of the about face, even if it meant reduced profits in the short term.

“Investors want to see that through the period we’re in now — that we’re recovering and investing for customers and people and that’s what is actually good for investors in the long term.”

Former Qantas investor Steve Johnson of Forager Funds, said the apology and message from Ms Hudson was “the first step in the right direction” after a series of mis-steps.

He said it was clear “just maximising profits” had not worked out particularly well for Qantas and it was a positive sign they were reading the room now, rather than continuing on down the same path.

“In terms of the impact on the business it’s all very fixable at the moment,” Mr Johnson said.

“I fly quite a bit for work and I still see a customer preference (for Qantas). It’s always still pretty full.”

Opposition transport spokeswoman Bridget McKenzie also welcomed the new approach being taken by Ms Hudson, who is due to appear before the Senate Committee inquiry into bilateral air rights next week.

New Qantas CEO Vanessa Hudson has been undertaking a listening tour, to help with cultural change at the airline in the wake of Alan Joyce’s exit. Picture: James D. Morgan/Getty Images

Senator McKenzie said Qantas’s corporate behaviour had at times been “reprehensible” and undermined its once shining reputation with the Australian travelling public.

“Now it is time for the Albanese government to do its job in ensuring we have a competitive, reliable and affordable airline system, where the rules do not advantage one particular airline,” she said.

Frontline Qantas workers were more skeptical about the promises being made by Ms Hudson, in particular around the “empowerment” of cabin crew to recover passengers when disruption occurred.

Flight Attendants Association of Australia federal secretary Teri O’Toole said it was appropriate to give crew the responsibility to hand out vouchers to passengers when things went wrong.

“However when those frontline workers are struggling to get service failures fixed, that can be problematic,” Ms O’Toole said.

“Cabin crew want all customers to be happy and do everything to make that happen but who is looking after the cabin crew? Rostering issues are leaving our crew exhausted.”

A market update was expected to be delivered in coming weeks, to inform shareholders of Qantas’ financial position.

Ms Hudson said travel demand remained strong but noted the price of fuel had increased 30 per cent in the last three months.