Barely three years after its entire fleet was grounded, Qantas Airways has never been more profitable. But as Australia’s national airline has emerged stronger from the pandemic, it has alienated its most important constituency: Australians. They bemoan that its flights are unreliable and expensive. They are aghast at how government protectionism has made Qantas by far the biggest airline in Australia and pushed up the price of travel. They are stunned by allegations that it sold tickets for flights it never intended to fly. They cannot square how Qantas unfairly laid off hundreds of workers, then handed out enormous paychecks to its CE and board of directors. Now, as the baying for blood intensifies, labor unions and lawmakers are calling on the company’s board to resign en masse. The anger is personal for Australians, who feel profound ownership over the carrier that bills itself as “the spirit of Australia,” said Geoffrey Thomas, the Perth-based founder of AirlineRatings.com. “We’re fiercely proud of it — so we expected better of it.” Qantas is rooted in Australian aviation history and long enjoyed a reputation for safety and comfort. Air travel is an indispensable part of everyday life in this sparsely populated country roughly the size of the United States, with some cities hundreds of miles from the next major center. Qantas operates three of every five commercial domestic flights, and signing up for a Qantas frequent flier account is a rite of passage for many. The recent scandals, which many Australians see as betrayals, sting acutely. Seeking to reassure her compatriots, Vanessa Hudson, the airline’s new CE, posted a video message of apology online on Friday. “I know that we have let you down in many ways, and for that I am sorry,” she said, adding: “We want to get back to the national carrier that Australians can be proud of.” <br/>
oneworld
Qantas Airways' new boss Vanessa Hudson started work trying to restore the airline’s battered reputation with increased spending on major customer bugbears such as on-board catering, call-center staffing and loyalty-point flight redemptions. Less than three weeks after taking the helm, the new CEO has been forced to fix stress points that fractured under predecessor Alan Joyce. Since pandemic travel restrictions eased last year, a spike in flight cancellations, lost bags and telephone wait-times have frustrated passengers. The airline’s simultaneous record profits reinforced the perception that Joyce neglected customers to bolster the airline’s bottom line. In a statement Monday, Qantas said it will spend an extra A$80m ($52m) on so-called passenger improvements in the year ending June 2024, in addition to the A$150m previously allocated for the job. There will be more and better trained workers in Qantas call centers, larger numbers of seats available for air miles, and more generous support for passengers when things go awry, the airline said. The airline also warned that its fuel bill will swell by A$200m to A$2.8b for the six months ending December if oil prices remain elevated. Qantas also expects an additional A$50m hit from unspecified foreign-exchange movements. “All the challenges faced by the airline at the moment do not bode well for its stock price,” said IG markets analyst Hebe Chen. “There’s a significant impairment cost associated with its damaged reputation and diminished trust. Escalating oil prices are putting further pressure on its profit margins.”<br/>