Frequent flyers erupt at Qantas CEO Alan Joyce after he failed to answer key questions about how many travellers are owed flights, points and refunds: ‘What’s tens of millions of dollars when it’s other people’s money?’
Qantas boss Alan Joyce and other top executives have been accused of failing to disclose $100 million in unused flight credits during a fiery clash with a senator that also sparked anger among the airline’s customers.
Labor Senator Tony Sheldon, former boss of the Transport Workers Union, seized an Australian Financial Review column accusing Mr Joyce of brushing off accumulated flight credits worth hundreds of millions.
Last Thursday, Mr Joyce said Qantas owed $370 million in unused flights collected from potential passengers who were unable to use tickets or denied the use of frequent fliers during the pandemic.
Senator Sheldon noted that this figure excludes flight credits for Jetstar and foreign Qantas passengers.
All remaining unused credits will expire on December 31 of this year.
Qantas boss Alan Joyce faced criticism from senators over how many flight credits Qantas has for all its operations
“Tell me the total value of the remaining flight credits for the entire Qantas group, including Jetstar and overseas customers?” Senator Sheldon asked Qantas’ corporate affairs chief Andrew McGinnes, who appeared with Mr Joyce.
Mr McGinnes tried to sidestep the question by saying he doesn’t have the exact numbers before adding that there was no lack of transparency at Qantas on the matter.
An exasperated Senator Sheldon tried to put the same question to Mr. Joyce and also to Jetstar boss Stephanie Tully, but neither could give him a satisfactory answer, though both insisted they had been honest and not trying to mislead.
After questioning Ms. Tully about Jetstar’s share of flight credits, the senator was eventually given a rough figure to add to the $370 million.
“It’s over $100 million?” Senator Sheldon asked Mrs. Tully.
“Jetstar’s cost about $100 million,” she replied.
After Mr. McGinnes was told again that he wasn’t sure how much more would have to be added for a full amount, Senator Sheldon exploded.
‘I’m not sure, my goodness. What are tens of millions of dollars in other people’s money?’
The response from frequent flyers and Qantas customers online was just as furious.
Alan Joyce is not sure about many questions. What does that say? And I’m a frequent flyer member of Qantas,” someone said.
During the Covid period, hundreds of millions of flight credits were accumulated by people unable to get tickets or frequent flyer points (stock image)
The response from frequent flyers and Qantas customers online was just as furious
Labor Senator Tony Sheldon was ruthless in asking Qantas executives for the full total of flight credits
Another wrote about how she, like many other clients, has struggled to get back what she owes.
Good luck finding your flight credits in your account. They’re not here,’ she said.
‘Qantas has made it so difficult to even access these credits – you have to try and find an email they sent you over two years ago. Criminal.’
Others complained about the airline’s course and the outgoing CEO.
I’m not sure I’ve ever disliked a CEO more than Alan Joyce. And I say that as a currently Platinum Frequent Flyer and former Platinum One Frequent Flyer. He has used government money (from Covid grants) to line shareholders’ pockets while jacking up prices to customers,” one said.
Another wrote: ‘As a gold member, shareholder and frequent flyer from Adelaide I think prices have never been higher, service has never been worse and management is so far from a clear focus on customer service .’
Qantas announced last week that it had posted a record profit of $2.5 billion just a year after a major loss, with Mr Joyce posting his last financial result before ending as CEO in November and handing over the job to its CFO Vanessa Hudson.
Underlying full-year pre-tax profit of $2.465 billion marked a major reversal from a loss of $1.859 billion over the 2021-2022 period before Australia reopened its borders to international travellers.
“There is a lot of criticism of corporate earnings right now, largely due to parallel pressures on the cost of living, and we understand that,” said Mr Joyce.
“In the case of Qantas, we have paid close attention to the needs of those who rely on us and whom we rely on.”
Revenue doubled from $9.1 billion to $19.8 billion in the year ended June 30, surpassing the pre-pandemic level of $17.97 billion from 2018-2019.