Jayne Hrdlicka cleared for Qantas departure Qantas to join a2 Milk

Qantas loyalty boss Jayne Hrdlicka has announced she is leaving the aviation sector to take up the leadership of a2 Milk.

A2 Milk chief Geoff Babidge with his replacement, Jayne Hrdlicka, in Sydney yesterday. Picture: John Feder.

Qantas has been dealt a blow to its succession planning after its loyalty boss and former Jetstar chief executive, Jayne Hrdlicka, announced she was leaving the aviation sector to take up the leadership of sharemarket high-flyer a2 Milk.

Ms Hrdlicka’s departure removes one of the prime candidates to replace chief executive Alan Joyce and reflects the likelihood that the Irishman will ­remain in the top job at least until the airline celebrates its 100th ­anniversary in 2020.

In the interim, former Wesfarmers chief executive Richard Goyder, who joined the Qantas board this year, is expected to succeed Leigh Clifford as chairman.

Jetstar boss Gareth Evans, who was the airline’s chief financial ­officer before most recently running its inter­national and freight operations, is now viewed as the internal frontrunner to replace Mr Joyce.

Peter Harbison, the executive chairman of CAPA-Centre for Aviation, said the departure of Ms Hrdlicka would mean there would be more attention on other people viewed as potential leaders of Qantas, including Mr Evans.

He suggested Qantas would not be short of candidates keen to run the loyalty division, which ­includes “the futuristic IT stuff, too, which is, for someone of that mindset, pretty interesting”.

It is understood Mr Joyce was informed of Ms Hrdlicka’s plans on Tuesday evening after she was approached by headhunter Russell Reynolds several months ago.

She is expected to stay at the airline until March before beginning her role at a2 at the start of the 2019 financial year. Departing a2 Milk chief executive Geoff Babidge yesterday described Ms Hrdlicka as a “star” who could take the firm to the next level as it heads towards $1 billion in annual revenues after it yesterday formally joined the ASX 100.

WEB Business A2 milk share price

A2 shares closed almost 3 per cent higher at $7.28, while Qantas shares closed 3 per cent lower at $5.20.

“She is customer-focused, she knows how to operate in a disruptive environment, has strong strategic capability and financial acumen,’’ Mr Babidge said. “I genuinely believe Jayne is a star — the ideal candidate to come in and take the company to the next level.”

Mr Babidge confirmed a2 started work on finding his ­replacement “seven to eight months ago”.

WEB Business Qantas share price

In August, following inquiries by The Australian, a2 revealed that its board was working with Mr Babidge on succession planning (he turns 65 next year), but it stressed that there were no plans or timetable in place for his ­departure.

“Jayne’s name came up through process, we started ­discussions and she became motivated about joining us,’’ Mr Babidge  said.

“She took time to consider her position and her interest built over a period of time as we started to engage and discuss the company.”

He said Ms Hrdlicka would complement a2’s highly competent management team.

“The real question now is to take the company to the next level,” he said.

“I expect we will exceed $1bn in revenue.

“We continue to grow ahead of expectations and we expect that to continue for the foreseeable future.’’

A2 announced a reorganisation of its leadership team earlier this year that included the appointment of a potential heir to Mr Babidge, Peter Nathan, as chief executive responsible for the Asia-Pacific.

Mr Nathan, Mr Babidge and members of the a2 executive team were actively engaged in the succession planning and recruitment process undertaken by the board. Mr Nathan remains comfortable in his Asia-Pacific role.

“I was pleased to have met Jayne as part of the selection process and look forward to her taking the business to another level in the next phase in the growth of the company,’’ Mr Nathan said.