How Vanessa Hudson has changed the Qantas culture and brought employees onside

A year into the job as Qantas chief executive, Vanessa Hudson has reflected on the cultural change at the airline since taking over the reins from Alan Joyce.

In just under a year as Qantas CEO, Vanessa Hudson has notched quite a list of achievements, including a solid $2.1bn profit, a settlement with the ACCC, a new frequent-flyer rewards product and a new chairman in John Mullen.

There has also been a new boarding process, a new non-stop route to Paris, the acquisition of Trip-a-Deal, and the promise of wi-fi on international services by year’s end.

But as she approached her first anniversary in the top job next Friday, Ms Hudson counted her biggest highlight to date as the relationship she had built with workers – something her predecessor, Alan Joyce, struggled with.

“I don’t want it to sound corny but the highlights are in the feedback I get from people on the frontline who are the real heroes in the organisation,” Ms Hudson said.

“When they come up and hug me or when they come up and shake my hand and say thank you for the job you do, they are absolutely the highlights, that’s truly what motivates me because if I can make their work life better and make them feel valued, that then makes them deliver a better experience for our customers.”

The cultural change had not gone unnoticed by employees, in particular cabin crew, who make up the largest segment of the Qantas workforce.

Buoyed by their newly signed long-haul deal and “same job, same pay” commitment affecting 2400 workers, the Flight Attendants Association of Australia had nothing but praise for Ms Hudson.

Qantas first officer Lauren MacLean and CEO Vanessa Hudson in an A320 flight simulator in Sydney. Picture: NewsWire/John Appleyard

FAAA federal secretary Teri O’Toole said the former chief ­financial officer was “a beacon of hope” as CEO.

“In the past, it felt like Qantas was run on fear. Now it’s starting to feel like workers are being viewed as people rather than a set of numbers,” Ms O’Toole said.

“There’s a realisation that decisions that are right for people can be right for the business, rather than if it’s right for people it must be bad for the business.”

Pilots were also noticing a willingness to “engage” on industrial relations issues, in contrast to the “take it or leave it” approach of the past.

Australian and International Pilots Association president Tony Lucas said the receptiveness of Ms Hudson’s team gave him hope, but the imposition of a two-year wage freeze on new agreements remained a source of frustration.

“The shadow of Alan Joyce hangs over the sentiment of the ­pilots of Qantas, which is a shame because I’d like to be able to move on from that legacy in terms of rebuilding the level of engagement and trust that pilots have with Qantas,” Captain Lucas said.

“The love for the spirit of Australia is still there, but the love for the company itself is not where it used to be, which is really sad.”

Outside of the airline, there was a view that Ms Hudson’s focus was “where it needed to be”.

Australian Shareholders Association chief executive Rachel Waterhouse said building reputation and trust with customers, employees, shareholders and stakeholders was critical.

“Ultimately, the long-term success of the company will depend on the collective commitment of the board, executives and employees to prioritise and care for their customers,” Ms Waterhouse said.

“Only time will reveal how ­effective this strategy will be.”

Wilson Asset Management investment analyst Hailey Kim said Thursday’s results suggested Ms Hudson was “managing a delicate situation in a complex operating environment really well”.

“She’s executing the strategy she took on, and managing the different stakeholders and that’s ­really reflected in her balance of capital management and capital expenditure, and at the same time lifting on-time performance,” Ms Kim said.

“Her execution around the big CAPEX programs in the next couple of years will be very closely watched, but in terms of the complex operating environment, the fact she’s going along as smoothly as she has been is a big positive.”

In the year ahead, Ms Hudson saw the fleet renewal and maintaining Qantas’s competitive edge in a crowded international landscape as her biggest challenges.

On the domestic front, Ms Hudson wasn’t about to be distracted by a new Virgin Australia CEO or the potential for new foreign-owned competition following the collapse of Bonza and Rex.

“If you look to history about why it’s been so hard [for airlines to succeed] – airlines that don’t stay on top of fleet renewal, airlines that don’t maintain balance sheet strength are the ones that have ­difficulty withstanding shocks, whether it’s September 11 with ­Ansett or Covid with Virgin, these are all things as a business we’ve got to maintain an absolute relentless focus on,” she said.

Originally published as How Vanessa Hudson has changed the Qantas culture and brought employees onside