October 25th 2024.
In the midst of a tumultuous year for Qantas, the airline has been working hard to regain the trust of its customers. Just days after being ordered to pay three former employees a hefty sum of $170,000 for wrongful dismissal, and weeks after being hit with a $100 million fine for selling tickets on cancelled flights, CEO Vanessa Hudson gave a positive update at the company's annual general meeting in Hobart.
Acknowledging that the airline has made mistakes in the past, Hudson assured shareholders that they have been receiving positive feedback from customers, indicating that they are on the right track. Last year's AGM was met with controversy when then-chairman Richard Goyder was booed and faced calls of "shame on you" for cutting off a shareholder's microphone. This led to one of the biggest protest votes in Australian corporate history, with 83% of shareholders voting against the executive pay report.
However, this year's meeting was met with less opposition, with only a required three-quarters of shareholders in favor of a motion to spill the board. New chairman John Mullen also expressed confidence in the airline's efforts to restore its reputation, stating that Qantas and Jetstar have always been and remain excellent airlines, with a reputation for safety and operational excellence.
Mullen also assured shareholders that the issues that caused last year's difficulties and reputational damage have been thoroughly addressed. However, there were still some questions raised by shareholder Chris Maxworthy, who had been cut off by Goyder last year. Maxworthy questioned the former CEO's remuneration, which had been significantly reduced earlier this year. He also raised concerns about board member Antony Tyler's reelection, which led to a private discussion between Maxworthy and Mullen after the AGM.
In addition to the AGM, this week also saw the federal court order Qantas to pay $170,000 to three ground staff workers who were unlawfully terminated during the pandemic. This ruling is just the beginning, as there are approximately 1700 employees who were illegally outsourced in November 2020, which could result in a significant bill for the airline.
Qantas has also been facing other challenges, such as a $100 million fine for selling tickets on cancelled flights and ongoing strikes by its engineers over a pay dispute. Despite these setbacks, the airline's share price has remained strong, with a 1.45% increase after the AGM. It seems that Qantas is determined to overcome these obstacles and regain the trust of its customers. As CEO Hudson stated, they may not always get it right, but they are committed to addressing any issues and improving their public standing.
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