Qantas reputation losing altitude

In his dying days as Qantas chief executive, Alan Joyce has become a corporate example of the Greek myth of Icarus, the man who flew too close to the sun. As the power Mr Joyce has been able to wield in Canberra has been exposed to public view, the reputation of Qantas has steadily lost altitude. Flooded with complaints from customers about a decline in airline service, the Australian Competition & Consumer Commission has also cast its gaze on the national carrier and been aghast at what it has found. Like the big banks, which were prepared to charge people for services not delivered and to take fees from people after they were dead, Qantas stands accused of a fee-for-no-service scandal of its own.

The ACCC action encapsulates the way in which monopoly powers allow big companies to treat their customers with disdain. Selling tickets to flights weeks after they had been cancelled presents a real cost to customers; financially, practically and emotionally. Not telling customers that flights had been cancelled compounds the contempt. Since the pandemic, politicians have been exposed for their closeness to Qantas under Mr Joyce. Qantas was protected with government subsidies during the pandemic after campaigning for its rival, Virgin, to be thrown to the wolves. Qantas, it is now alleged, operates one of the biggest and most sophisticated influence operations in Canberra to support its corporate interests. A Chairman’s Lounge system that allows the Qantas chief executive to bestow and withdraw the privilege of access to politicians at his sole discretion is unhealthy. The granting of a Chairman’s Lounge membership to the son of the Prime Minister, as has been the case with Anthony Albanese, does not pass the pub test. Nor does a decision to shield Qantas from competition by refusing permission for extra Qatar Airways services to Australia.

Government conflict is again raised in complaints that the terms of reference of a government aviation industry white paper are deficient and do not address competition between airlines and airports. The ACCC charges follow Qantas announcing a $1.74bn net profit, putting beyond doubt that the airline has emerged from the pandemic with its balance sheet intact. The same cannot be said about its reputation. Greater scrutiny has melted the wings of a corporate giant and threatens to bring an airline back to Earth. The power balance must be restored in favour of those who will never enjoy the trappings of privilege in the Chairman’s Lounge but expect an airline to compete for their hard-earned travel dollar.