Explosive new revelation about Alan Joyce’s controversial share sale: Qantas KNEW they were under ACCC investigation when the CEO sold $17m of his stock at the top of the market

Qantas’ board allowed their CEO Alan Joyce to sell a $17 million tranche of shares – despite two requests from Australia’s consumer watchdog for information about the sale of thousands of tickets on already canceled flights.

Alan Joyce sold more than 90 percent of his shares in the company while CEO on June 1 – five weeks after the Australian Competition and Consumer Commission (ACCC) twice requested documents as part of their investigation. the Australian Financial Statement reported.

The first request was made on September 14 last year and the second on April 26.

The $17 million sale was completed as the ACCC concluded its investigation into the airline selling tickets for 8,000 flights that had already been canceled mid-flight. pandemic.

Qantas is now facing a $250 million fine after the ACCC took legal action in the Federal Court.

The ACCC requested the information on April 26 this year, which was the second time they requested documents, before Mr Joyce sold $17 million worth of shares on June 1.

The requests for information were made in response to a large number of customer complaints the ACCC received from aggrieved pilots, a source told AFR.

Qantas is one of the most complained about companies in Australia.

The communications are not publicly available, but do give the company insight into the nature of the investigation to which they relate.

During these investigations, companies are not allowed to publicly discuss matters that affect them until prosecution has occurred.

There are no rules preventing employees like Mr. Joyce from selling shares during investigations unless they act on information they know will affect the stock price.

Daily Mail Australia is not suggesting the ACCC’s investigations were public; During an investigation, companies are not allowed to discuss the matter publicly until the regulator proceeds with prosecution.

Even if the ACCC succeeds in imposing fines of $250 million, as it has indicated, the amount would likely not be material to Qantas’ share price.

There are also no rules preventing directors from buying or selling shares unless they are acting on information they know is material to a company’s share price and has not been made public.

The former CEO, who left the company on September 6, faced significant backlash for selling the shares when he did.

Qantas investors have expressed anger that Joyce sold his shares at the top of the market for $6.74 each.

Some said it would have been more appropriate for the embattled boss to keep them until he left office earlier this month.

The $17 million sale wouldn’t have been as glamorous if he had, as Qantas shares closed at $5.61 on Friday.

Mr Joyce left the plane two months earlier than he had originally planned and they have been shrouded in controversy since the move.

Aggrieved investors have said the disgraced former CEO should have held onto the shares until he left the company on September 6.

The ACCC’s investigation found Qantas sold fraudulent tickets for 8,000 flights that had already been canceled to preserve slots at Sydney Airport

A Qantas spokesperson told Daily Mail Australia they were aware the ACCC had conducted a “number of investigations” into the company’s transactions and confirmed they had requested information on a number of occasions.

None of these requests had resulted in “any negative findings,” the spokesperson added.

‘As early as August 28, the ACCC told Qantas in writing that it was still completing its investigation. The first time this issue resulted in legal action was when it was announced by the ACCC on August 31,” they said.

The first request came in September 2022 and the second in April 2023, ranging on June 16.

The difference is said to stem from a discussion between ACCC and Qantas lawyers over whether the company had provided all documents related to the April request or whether it needed more time to provide them.

The April notice came as the regulator began tightening its oversight of slot management at Sydney Airport.

In their final report on the matter, the ACCC alleged Qantas was hoarding and initiated legal action against the company.

ACCC chair Gina Cass Gottlieb linked the cancellations to Qantas’ desire to retain slots at the expense of thousands of passengers who were tricked into buying the fraudulent tickets.

“We allege that Qantas made many of these cancellations for reasons within its control, such as network optimization, including in response to shifts in consumer demand, withdrawing routes or retaining take-off and landing slots at certain airports,” it said Mrs. Gottlieb. .

‘However, this case is not about an alleged breach of the actual cancellation of flights, but about Qantas’ actions after it canceled the flights.’