Qantas hoses down jostling for Alan Joyce’s job

The airline’s chairman Richard Goyder insists Alan Joyce will stay in the top role until 2023, despite internal jockeying for his job.

Qantas chief financial officer Vanessa Hudson with CEO Alan Joyce at the airline’s headquarters in Sydney. Picture: NCA NewsWire / Flavio Brancaleone

Qantas chairman Richard Goyder has moved to end speculation that his long-serving chief executive Alan Joyce intends leaving the company this year.

Mr Goyder’s comments come amid internal jockeying at the airline to replace Mr Joyce – who was appointed in 2008 – after the company’s chief financial officer Vanessa Hudson said she was interested in the position.

Ms Hudson is one of four internal candidates who are in contention for the job, alongside Jetstar chief executive Gareth Evans and Qantas Loyalty boss Olivia Wirth.

The airline’s head of domestic and international, Andrew David, is seen by many within Qantas as an outside contender.

Ms Hudson told Bloomberg earlier this week that there were “a number of candidates competing (to succeed Mr Joyce), so we’ll see how that goes over the next 12 months”. “If the board was to give me the opportunity to step into that role I would be incredibly proud,” she said.

Her comments followed Mr Joyce’s admission last year that the Covid-19 pandemic would be the “last crisis” he steered Qantas through.

But Mr Goyder, who became the airline’s chairman in October 2018, told The Weekend Australian that Mr Joyce “will remain as CEO until at least the end of 2023, and possibly beyond”.

“He’s done an incredible job through the pandemic and now into the rebuild, and he’s about as energised in the role as I’ve ever seen him, given what’s on the horizon,” he said.

It is no secret that the Qantas board has been actively succession-planning for when Mr Joyce decides to exit the company, looking carefully at the executive team to ensure there was sufficient talent and ability to fill any expected or unexpected vacancy.

Alan Joyce and Qantas Loyalty CEO Olivia Wirth. Picture: AAP

As part of the process, people considered to have the most potential are moved into different parts of the business to test their performance and broaden their skill set in the industry. In the case of Mr Evans, the current Jetstar chief executive’s career at Qantas probably best reflected that of Mr Joyce, who headed the discount carrier before his promotion to the top job.

After starting out in scheduling and revenue management, Mr Evans was appointed chief financial officer in 2010 before moving to head Qantas International and Freight. In 2017, he replaced Jayne Hrdlicka as Jetstar chief and oversaw an increase in revenue in the years before the pandemic and avoided major controversy.

Despite Mr Evans’s strong credentials, there is internal speculation that the airline’s next chief executive will be female, with both Ms Hudson and Ms Wirth rated highly by the board.

One former Qantas executive, speaking on condition of anony­mity about the succession planning, said Mr Evans was a “very competent guy but he’s not Alan”.

“Vanessa (Hudson) has been overseas, and run North America very, very well,” he said. “She is a woman and I do think that will play on (the board’s) minds … but most importantly she is exceptionally competent.”

Ms Wirth had the advantage of heading the only consistently profitable part of the airline throughout the pandemic, with Qantas Loyalty continuing to perform well over the last two years.

In the 2022 half-year results, the business recorded $127m in earnings before interest and taxes, one of the few positives in the group’s overall $1.3bn loss. Known as a ruthless competitor, much like Mr Joyce, Ms Wirth has not sought media attention unless it was to promote the frequent flyer program and its many offshoots.

Unlike Ms Hudson, she has never publicly stated her aspirations for the top job but was understood to be very much in the running, and had addressed the board on several occasions.

Ms Wirth may also have learned to keep her ambitions to herself, following the experience of former Qantas International chief executive Alison Webster.

Just a few months into the role, Ms Webster declared her interest in Mr Joyce’s job, only to be shown the door a year later.

Former Qantas economist Tony Webber, now an aviation lecturer at the University of New South Wales, said the role of CEO was exceptionally important in a company like Qantas, and much coveted by executives.

“Those who are in the running for that position really fight hard to get it. It’s heavily political and much sought after,” said Dr Webber. “When Alan Joyce went after that position, he was considered third in line after Peter Gregg and John Borghetti. They all did everything they could to get it, and those who missed out, left soon after.”

Beyond the three frontrunners, there appear few others for the Qantas board to choose as a replacement for Mr Joyce, given the airline’s history of promoting from within.

Although extremely experienced, Qantas Domestic and International CEO Andrew David is in a difficult position as the declared “sole decision maker” in the outsourcing of 2000 ground handling workers, which was found to be unlawful by the Federal Court.

At the time it was left to Mr Evans to comment on the ruling, with Mr David considered too close to the case to face the media.

An appeal against the judgment is yet to be decided but Mr David is not expected put his hand up for the top job.

Virgin Australia chief executive Jayne Hrdlicka had also been mentioned as a possible contender given her history with Qantas and Jetstar, but it is understood she is not being considered. The board took a dim view of Ms Hrdlicka’s handling of the appointment of former Qantas manager Nick Rohrlach to Virgin’s loyalty business Velocity, sources said.

David Abraham, chairman at the CEO Institute, said succession planning was an important process for large companies and encouraged high-level performance from managers.

“If the executive team is good, everyone wants to get to the top, or most do, so the competition is healthy as long as it’s not in a way that causes problems for the company,” he said. “Personal ambitions should not overrule the strategy of the company.”

Mr Joyce has repeatedly been named one of the country’s most influential business leaders, but has also been dogged by suggestions his retirement is imminent, including as early as 2012 when the Sydney Morning Herald reported the internal candidates included Ms Hrdlicka, then Jetstar boss, Lyell Strambi, head of domestic operations, and Simon Hickey, international boss.