New Qantas chief Vanessa Hudson’s fix-it order to senior staff

New Qantas CEO Vanessa Hudson has ordered senior leaders to start work immediately on fixing customer angst, particularly in relation to $570m worth of travel credits.

New Qantas boss Vanessa Hudson has ordered her senior leaders to focus on fixing pain points and delivering quick wins as immediate priorities after a horror week which saw her predecessor Alan Joyce depart the airline early.

After a four-month “listening tour” with customers and staff in airports, hangars and aircraft, Ms Hudson told senior leaders about the need to focus heavily on easing “pain points” for customers and providing some “quick wins” in a virtual meeting late Tuesday.

While there was an acknowledgment some improvements would take time, Ms Hudson said she wanted work to start immediately, particularly in relation to travel credits following outrage about the amount of funds held by Qantas for flights that never happened due to Covid restrictions.

The airline is also dealing with a damaging lawsuit launched by the consumer watchdog, alleging Qantas sold tickets on flights that had been cancelled up to 47-days prior along with broader unrest over high airfares.

Ms Hudson – who met Qantas staff for official company photographs – said her discussions with workers and customers had been “really valuable” and she would keep listening to them as her team worked through their plans for the coming weeks and months.

“Our people are passionate about our customers and making sure we deliver for them,” she said on Wednesday in a statement.

“I see that every time I fly, every time I walk through an airport or meet with our crew and engineers.”

Qantas chief Vanessa Hudson chats with staff at Melbourne’s Tullamarine Airport on Wednesday. Picture: Getty Images

After announcing on Tuesday that rebuilding customers’ trust would be her first priority, Ms Hudson impressed upon senior leaders the need to address the travel credits mess.

In one of the most damaging revelations in Mr Joyce’s final days, Qantas was forced to admit last week it was still holding $570m of customers’ money for flights that were cancelled during the Covid pandemic.

The figure was $200m more than Qantas had reported in its full year results, after the airline omitted credits held by Jetstar and overseas customers.

It was estimated the number of customers who were yet to redeem travel credits ran in to the millions, for the simple reason Qantas had made the process very difficult to navigate.

Ms Hudson wanted to make it easier for people to redeem flights and refunds, which will no longer expire at the end of the year.

Canberra Airport CEO Stephen Byron said being open and transparent with customers, especially about things such as flight delays and cancellations, was critical to repairing Qantas’s reputation.

He also called for an immediate pricing review to address high airfares, a commitment to reduce unacceptably high cancellation rates and an overhaul of the credits scheme which was “tricky and designed to be hard to use”.

“The fundamental reality is the change in CEO changes nothing unless Qantas stops gouging its customers and lowers airfares,” Mr Byron said.

The ASX took a positive view of Ms Hudson’s elevation on Wednesday, heading upwards after a downward spiral triggered by a consumer watchdog lawsuit over flight cancellations.

Moody’s Investors Service vice president Ian Chitterer said they expected Qantas to remain “well positioned from a credit perspective”.

“While at a headline level, the ACCC allegations have resulted in significant negative publicity for Qantas, the credit metrics and factors supporting the company’s credit profile have never looked stronger,” said Mr Chitterer.

“The decision for Alan Joyce to step down two months early will help the airline start afresh with Vanessa Hudson as the new CEO and the current board focusing on what is required to move forward.”

Griffith University senior marketing lecturer Gavin Northey said it was likely Qantas would bring in crisis management experts to overhaul its image after a torrid few months.

To that end a new “feel good” advertising campaign might be in the pipeline, at the same time as other sweeteners for customers such as a fare sale and website overhaul.

Despite much negative publicity in recent weeks, Dr Northey said there was still a lot of goodwill around Qantas and the airline’s impeccable safety record.

“A lot of people identify with Qantas and they see it as a real representation of Australia,” Dr Northey said.

“People still refer to it as the flying kangaroo, and it resonates with them because they feel it’s part of the national identity.”

Sydney businessman Jacob Quigley said he was continuing to wait for an $800 refund promised to him after he endured a broken seat on an international flight in November.

After many hours spent on multiple calls to the Qantas call centre, and at least four assurances the refund was being processed, Mr Quigley was still waiting ten-months later.

“The fastest way they can rebuild trust, is to actually do what they say they’re going to,” Mr Quigley said. “I think the Qantas flight crew are well above average and the in-flight service is fine, it’s just the part about looking after customers outside of the aircraft they can’t seem to get right.”