Qantas boss Alan Joyce walks out on the airline months before he was due to retire

Qantas chief executive Alan Joyce has resigned from the airline in spectacular fashion after leaving his job months before he was due to retire with a $24 million golden handshake.

Joyce was due to leave the company in November at the company’s general meeting of shareholders, but has come under mounting pressure in recent days, sending the airline into crisis mode.

Qantas has been under increased scrutiny since posting a $2.5 billion profit last Thursday after receiving $2.7 billion in government Covid grants.

And Mr Joyce’s role in the government’s decision to ban Qatar Airways from adding another 28 Australian flights to its schedule is also being questioned.

Rivals claim the measure has increased Australian airfares for travelers by about 40 percent.

The airline is also facing multiple legal actions due to tickets sold for already canceled flights and passengers unable to get their money back for trips canceled during Covid.

Now Mr Joyce has decided to retire immediately rather than sit out the firestorm until his scheduled departure date in November.

He has immediately handed over the baton to incoming CEO Vanessa Hudson, who will start in this position on Wednesday.

“In recent weeks, the focus on Qantas and past events has made it clear to me that the company must prioritize the renewal,” he said.

“The best thing I can do under these circumstances is to bring forward my retirement and hand over the job now to Vanessa and the new management team, knowing that they will do an excellent job.

“There is much I am proud of during my 22 years with Qantas, including the past 15 years as CEO.

“There have been many ups and downs and clearly there is still a lot of work to be done, especially to ensure that we always deliver to our customers.

“But I leave knowing that the company is fundamentally strong and has a bright future.”

Mr. Joyce earned a record $23.9 million in 2018 and is expected to bring in between $15 million and $18 million after bonuses this year, with an additional $6 million in incentives if he retires, for a $24 million savings fund for retirement. to catch.

He sold more than 80 percent of the Qantas stock he owned on June 1 for $17 million, selling 2.5 million shares at $6.75 each.

Since then, continued bad publicity and legal action have caused the share price to drop to its current level of $5.65, meaning Joyce’s shares would have been worth $2.7 million less than he got for them in June.

The airline is now facing legal action from the ACCC over allegations that Qantas sold tickets for 8,000 ghost flights that had already been cancelled.

Angry customers have also launched a class action against Qantas for holding their money when flights were cancelled.

Last week, Qantas reversed an earlier decision to let all current Covid flight credits expire by the end of the year, following a furious backlash.

The company released a statement on Monday admitting its shortcomings in the way it handled the ticket issue, but it has since been removed from the airline’s website.

Qantas admitted in the now-deleted statement on Monday: “We openly acknowledge that our standards of service have fallen far short and we sincerely apologise.

“Since then we have worked hard to fix them and that work continues.”

A select committee hearing in the Senate on Monday called on Mr. Joyce to face criticism from senators over how the airline was run.

Mr Joyce has also been questioned about granting the Prime Minister’s son, Nathan, 23, and his girlfriend Jodie Haydon, complementary memberships to the prestigious Qantas Chairmans’ Lounge.

Alan Joyce has also been asked about additional Qantas Chairmans’ Lounge membership to the Prime Minister’s son, Nathan, 23, and his girlfriend Jodie Haydon (pictured).

Qantas has been under increased scrutiny since posting a $2.5 billion profit last Thursday after receiving $2.7 billion in government Covid grants

Qantas Chairman Richard Goyder said: ‘Alan has always put the best interests of Qantas first, and it shows today. On behalf of the Board of Directors, we sincerely thank him for his leadership through some formidable challenges and for thinking ahead to opportunities such as ultra-long-haul travel.

“This transition comes at a clearly challenging time for Qantas and its people. We have an important role to play in restoring public confidence in the kind of company we are, which is what the Board of Directors is focusing on, and what management will do under Vanessa’s leadership,” added the Lord Goyder to it.

As planned, shareholders will formally vote on the appointment of Vanessa Hudson as Managing Director at Qantas’ annual general meeting in November.

Today’s announcement means that one of the announcements announced in June this year will also be accelerated, namely the appointment of Rob Marcolina as Chief Financial Officer of the Group, in line with the transition of current CFO, Vanessa Hudson, to to the role of CEO of the Group.