By Amelia McGuire
Qantas’s incoming chief executive Vanessa Hudson says the airline is well-placed to rebuild consumer trust as she prepares to take over from current boss Alan Joyce, who will leave the airline after 15-years at the helm in November.
Hudson has worked as the airline’s chief financial officer since 2019 and managed Qantas’s finance and treasury portfolio during the COVID-19 pandemic. The airline accrued more than $7 billion in debt over the two years of the pandemic when the aviation industry was grounded. Qantas returned to a record half-year profit of $1 billion in February.
Vanessa Hudson has been appointed the new chief executive officer of Qantas. Credit: Rhett Wyman
“We have all been working very hard over the past six months, and we were very up front in terms of recognising the customer experience was not where we wanted it... We’ve got to win customers, and we’ve got to win their support,” Hudson said on Tuesday.
“We’ve invested an enormous amount of money, $200 million, in getting the performance back to where it needs to be and back where we were pre-COVID and our focus going forward is going to continue to improve on delivering to our customers, not just every day but every flight.”
Chairman Richard Goyder unveiled Hudson’s appointment on Tuesday after the board came to a decision late on Monday evening, ending months of speculation surrounding the airline’s succession plan. The Qantas CEO announcement is the second high-profile management change under Goyder’s watch in a week, with the AFL on Monday locking in its new CEO, Andrew Dillon, after a lengthy search.
Goyder on Tuesday said Qantas’ board had considered around 40 people for the role, but the choice was ultimately between Hudson and Qantas loyalty boss Olivia Wirth, who oversees one of the airline’s most lucrative divisions.
“I just want to say how much the board and I admire the two outstanding candidates in Vanessa Hudson and Olivia Wirth, and both were appointable to this role, but the board has made the decision that Vanessa is the right person to take Qantas forward,” Goyder said.
Hudson joined the airline in 1994 at just 24, and has worked in a number of executive positions across the group over the past 28 years, including as chief customer officer and senior vice president for Qantas across the Americas and New Zealand. She is the first woman to lead the airline over its 103-years of operations. It’s the first time Australia’s two major carriers have been led by women, with Qantas’s major rival Virgin Australia helmed by Jayne Hrdlicka.
“I can honestly say that when I joined Qantas at 24, I did not expect to end up as chief executive officer,” Hudson said.
“I don’t think that I ever thought it was an expectation or a goal that I had, but now that I’m here, I’m just so honoured. I’m excited to follow in Alan’s footsteps and looking forward to where we’re entering a new, incredibly exciting chapter,” she said.
Qantas shares slumped 2.5 per cent to $6.58 following the announcement.
Goyder, Joyce and Hudson did not weigh in on whether it was likely Wirth will depart the carrier as a result of Hudson’s appointment.
“ I absolutely want to see Olivia as a part of Qantas in the future and will be working with her to support her in the coming months and years ahead,” Hudson said.
RBC analyst Owen Birrell said Hudson was the most logical choice for chief executive due to the airline’s ongoing fleet renewal program.
“Given the significant fleet renewal program that Qantas is undertaking through project Winton and Sunrise, we believe Vanessa is the most suitable and appropriate candidate to execute on the strategy that she has been heavily involved in developing”.
Joyce said in an interview he looks forward to exploring new Sydney-based business opportunities.
“The time is right. At the board’s request, I extended my time as CEO to see through the COVID-19 recovery plan, so now that we’re on the other side of that crisis it’s a logical time for me to step down,” Joyce said.
“There is a lot still to be done, as [I have] six months left in the role, and I’m looking forward to working with Vanessa on a smooth handover.”
Joyce was recently appointed the incoming chair of the Sydney Theatre Company, succeeding Seek chief executive Ian Narev on a timeline yet to be determined.
Senator Tony Sheldon, a former vice president of the ACTU, said Joyce and the board of Qantas should retire immediately for what he deemed to be multiple leadership failings, including the redundancies of about 8000 employees at the onset of the pandemic.
“Rather than waiting until the end of the year, Alan Joyce could give Qantas workers and customers an early Christmas present by resigning today,” Sheldon said.
“Clearly the CEO resigning is not enough. The Qantas board, which green lit every greedy, illegal action taken throughout the Joyce era, desperately needs renewal.
“Alan Joyce has left a massive task for the next CEO, who must restore the spirit of Australia to Qantas and end Alan Joyce’s ideological war on its loyal workforce and frustrated customers.”
The Australian and International Pilots Association’s president Tony Lucas said Qantas pilots were invested in the airline’s success under the new leadership.
“We look forward to working with Vanessa in her new role to ensure the continuing growth of the Qantas Group to the benefit of the travelling public, staff and shareholders,” Lucas said.
The Business Briefing newsletter delivers major stories, exclusive coverage and expert opinion. Sign up to get it every weekday morning.