Expect a bumpy ride as Qantas charts a new path
Big changes are afoot at Australia’s biggest airline, with Qantas Chairman Richard Goyder announcing he will follow CEO Alan Joyce through the exit door.
But those who think the flying kangaroo will quickly bounce back from its leadership turbulence will be sorely disappointed, according to investment expert Andrew Baxter.
“On the surface, the airline’s financials appear solid – a $2.47 billion net profit last financial year,” Baxter said.
“But as is often the case, this top line figure doesn’t tell the full story.”
Under now departed CEO Alan Joyce, Qantas was “stripped to the bone to cut costs,” Baxter explained.
“Exceptional customer service standards slipped as experienced staff were laid off.
“The average age of Qantas jets ballooned to 15 years, compared to seven at Singapore Airlines and five at Qatar Airways.”
Baxter, the CEO of Australian Investment Education, also pointed to claims from Australia’s consumer watchdog that he carrier sold tickets for nonexistent flights.
“The Australian public won’t forget these mistakes, nor will they forgive the eye-watering bonuses handed to the man who allowed them to happen,” he said.
Goyder will remain as Qantas Chairman until his retirement late next year, which could be a positive for the carrier, according to Baxter.
“In his previous role as the Chief Executive of Wesfarmers, Goyder found a balance between profits and principles. And despite managing a bigger company, he was paid a fraction of Joyce’s excessive salary,” he said.
Baxter said Qantas shareholders will hope Goyder can provide new CEO Vanessa Hudson with the short-term support she needs to “win back customers and restore the airline’s once golden reputation.”
Andrew Baxter is an investment advisor, educator and commentator who is recognised as one of Australia’s leading experts on trading education, wealth creation and money mindsets.