Qantas tests Alan Joyce’s heirs apparent with new roles

The race within Qantas to eventually succeed chief executive Alan Joyce has taken a new twist.

Qantas International and freight chief Gareth Evans.

The race within Qantas to eventually succeed chief executive Alan Joyce has taken a new twist with two potential heirs apparent, Jetstar CEO Jayne Hrdlicka and International and freight boss Gareth Evans, set to be tested in totally new roles in the group.

After revealing the second-highest annual profit result in the airline’s history on Friday, Mr Joyce reiterated he had no plans to retire any time soon, especially as the airline is looking to completely rework its international network with new super long-haul aircraft.

But with the airline’s 100th anniversary approaching in 2020 and the prospect of new director, retiring Wesfarmers CEO Richard Goyder, succeeding Leigh Clifford as chairman over the coming years, the Qantas board is clearly testing its best internal candidates to succeed Mr Joyce by giving them new challenges.

Peter Harbison, the executive chairman of CAPA-Centre for Aviation, said the announcement of the changes confirmed Mr Joyce was going nowhere soon.

“It shows he is certainly planning to be around for at least another two years,” he said.

“It is also very rare in this business to see a successful airline planning an evolution to a new leadership team, so you have to congratulate them for that.’’

In November Ms Hrdlicka will become CEO of Qantas’s loyalty and digital ventures division, after running budget carrier Jetstar for the past five years.

The former Bain consultant reportedly put her hand up for the Woolworths CEO role in 2015. She was previously on the Gordon Cairns-chaired board of the retailer but resigned in February last year. At Bain, she was a senior partner in the firm’s customer strategy and marketing practice, so will bring relevant experience to running the loyalty business.

Mr Evans, who takes Ms Hrdlicka’s job at Jetstar in November, was previously Qantas chief financial officer and has most recently run its international and freight operations as stand-alone divisions within the group.

“Over the past three years, our senior executive team has led the group through a major turnaround. We’re now entering a phase of ongoing improvement and innovation, and these changes will help drive that,’’ Mr Joyce said yesterday. “This is also about making the best use of the considerable leadership talent at the top level of our organisation.’’

In other changes, freight, catering and airports division manager Alison Webster will become CEO of Qantas International, while freight will come under the management of domestic business CEO Andrew David.

Group executive of people and culture, Jon Scriven, will retire after 8½ years, to be replaced by Lesley Grant, currently CEO of Qantas Loyalty. Olivia Wirth will take on a new role as chief customer officer.

Qantas announced the changes yesterday with Mr Joyce in Melbourne meeting investors as the airline’s share price suffered its biggest fall in more than 12 months. Qantas shares closed 5.7 per cent lower at $5.68 yesterday after soaring over the $6 mark last week. JPMorgan put a sell recommendation on the stock in the wake of Friday’s profit, citing uncertainty about the outlook and global oil market volatility.