Beleaguered long-time Qantas boss Alan Joyce will leave the airline tomorrow after the board brought forward his retirement two months.Mr Joyce was due to retire as chief executive at the end of this year but the Qantas board on Tuesday morning has advised the ASX the move will now take place on Wednesday.Incoming chief executive Vanessa Hudson will assume the role of managing director and group CEO as of Wednesday.In a statement released by Qantas, Mr Joyce said he believed the “best” he could do for the company in the wake of recent scrutiny of the airline’s conduct was bring forward his retirement and handing over to Ms Hudson.“In the last few weeks, the focus on Qantas and events of the past make it clear to me that the company needs to move ahead with its renewal as a priority,” he said.
Mr Joyce said he left “proud” of his 22 years at Qantas, including the past 15 as chief executive.“There have been many ups and downs, and there is clearly much work still to be done, especially to make sure we always deliver for our customers,” he said.“But I leave knowing that the company is fundamentally strong and has a bright future.”Qantas chairman Richard Goyder said Mr Joyce “always had the best interests of Qantas front and centre”.“On behalf of the Board, we sincerely thank him for his leadership through some enormous challenges and for thinking well-ahead on opportunities like ultra long-haul travel,” Mr Goyder said.“This transition comes at what is obviously a challenging time for Qantas and its people.“We have an important job to do in restoring the public’s confidence in the kind of company we are, and that’s what the board is focused on, and what the management under Vanessa’s leadership will do.”
Shareholders will formally vote on the appointment of Ms Hudson as managing director at Qantas’ Annual General Meeting in November.The announcement has triggered the bring forward of another executive change announced earlier this year, with Rob Marcolino to become Qantas group’s chief financial officer replacing Ms Hudson.It comes as Qantas chairman Richard Goyder is facing calls to explain chief executive Alan Joyce’s whopping pay package as the airline’s reputation is trashed.And he is also being asked to detail the considerations of the board when they gave Mr Joyce permission to sell 2.5 million Qantas shares in June and what knowledge they had of the
investigations into the sale of “ghost flight” tickets
.The Australian Competition and Consumer Commission is suing the airline in the Federal Court for misleading and deceptive conduct over the alleged sale of thousands of tickets for cancelled flights between May and July last year.
Mr Joyce sold his shares for $17m in June but the ACCC case has been one of many factors that has driven the share price down by 7 per cent since, to $5.60, meaning Mr Joyce would have netted $3m less if he sold those shares today.There is no suggestion of any wrongdoing by Mr Joyce’s or any member of the board.An airline source said it had only become apparent how serious the ACCC allegations were in recent weeks.Previously, Mr Joyce has said he sold the shares for a “personal purchase”.“It was the timing to do it given the market update, all information was disclosed. But I’m still a very large shareholder in Qantas and I more than meet the minimum level that the CEO is expected to hold,” he said in August.
