New Qantas CEO Vanessa Hudson lies low after damaging High Court ruling

Qantas is keeping Vanessa Hudson out of the limelight as the airline navigates a torrid period, resulting in growing calls for chair Richard Goyder to go.

Qantas has moved to distance new chief executive Vanessa Hudson from an explosive High Court decision, pointing out the key players in the outsourcing controversy have left or are leaving the airline amid pressure to accelerate board renewal including chairman Richard Goyder.

After two Federal Court rulings that found Qantas acted unlawfully by outsourcing the jobs of nearly 1700 ground staff, the airline elevated the matter to the High Court.

On Wednesday the seven judges delivered a unanimous decision dismissing Qantas’s appeal, which centred on the existence of workplace rights and when they ­applied.

The Transport Workers Union hailed the ruling as a “massive victory” and pledged to seek penalties and compensation from Qantas in excess of $200m.

Australian Council of Superannuation Investors’ chief executive Louise Davidson said the High Court decision had further damaged Qantas’s image.

“This will further tarnish the company’s reputation,” Ms ­Davidson said

“Investors will be expecting the Qantas board to reflect upon the various performance issues emerging in their consideration of pay outcomes for Alan Joyce and other executives as well as broader accountability issues.”

From left: New Qantas CEO Vanessa Hudson, chairman Richard Goyder and former CEO Alan Joyce. Picture: NCA NewsWire / Gaye Gerard

TWU national secretary ­Michael Kaine also emphasised that it was time for Mr Goyder to follow former chief executive Alan Joyce out of Qantas.

“The Joyce regime has been toppled, but the airline cannot achieve the reset necessary for its survival under the same board that resided over the largest case of illegal sackings in Australian corporate history,” Mr Kaine said.

“Richard Goyder cannot make it through another day as chair.”

Qantas’s response was a five-paragraph statement, acknowledging and accepting the High Court ruling, and apologising to the affected workers for the impact of the outsourcing decision.

The airline also indicated it would reach out to the TWU to discuss compensation ahead of a Federal Court hearing next Wednesday to consider an appropriate penalty.

Ms Hudson remained off limits to the media, and Mr Goyder did not return calls.

Instead it was suggested that the three senior managers who gave evidence at the initial Federal Court hearing had left the company or were due to leave by the month’s end.

They included former chief operating officer Paul Jones, who left Qantas to work for Virgin Australia in 2021.

Transport Workers Union national secretary Michael Kaine. Picture: NCA NewsWire/Martin Ollman

Former executive manager of airports Colin Hughes is also due to leave the airline soon, and Qantas Domestic CEO Andrew David is set to retire in just over two weeks.

Throughout the extended court battle, Qantas emphasised Mr David was the “sole decision maker” who took advice from Mr Jones and Mr Hughes about outsourcing baggage handlers, ramp crew and cleaners.

The move was seen as protecting Mr Joyce and other key executives from being tainted by the fallout, including Ms Hudson who was the chief financial officer when the money-saving decision was made.

Extraordinarily, the court heard Qantas’s group management committee, made up of senior executives, kept no minutes of its regular meetings.

Despite Mr David’s impending departure, major shareholders were not expected to be satisfied with anything less than a full explanation from Mr Goyder about the board’s role in the outsourcing decision.

Morningstar analyst Angus Hewitt said the firm maintained the view that Qantas’s profitability would come under pressure in the coming months and years as supply constraints eased and competition returned among airlines. “We expected these alone would necessitate a renewed focus on customers, and the latest negative pressures are making this abundantly clear,” Mr Hewitt said.

Mr Goyder and other board members are due to face up to shareholders on November 3 at the Qantas annual meeting at which Ms Hudson’s appointment will be formalised.

There were also calls for a review of the millions of dollars in bonuses earmarked for Mr Joyce, in light of the latest controversy.

A spokeswoman for the Australian Shareholders Association said investors deserved an explanation and a review of the carrier’s processes.

Qantas shares dived in response to the High Court decision but recovered to close 1c down at $5.57.

Originally published as New Qantas CEO Vanessa Hudson lies low after damaging High Court ruling