Qantas CEO will resign two months sooner due to controversy

After serving as Qantas’ CEO for 15 years, Alan Joyce was scheduled to retire in November. However, given the growing controversy surrounding the Australian flag carrier, Joyce will now leave the company immediately.

When she replaces Joyce on Wednesday, Chief Financial Officer Vanessa Hudson will make history as Qantas’ first female CEO, according to the BBC.

According to a statement released by Joyce on Tuesday, “In the last few weeks, the attention on Qantas and events in the past make it plain to me that the firm needs to go forward with its regeneration as a priority.

“Given these conditions, the best thing I can do is to retire earlier and pass over the reins to Vanessa and the new management group immediately, knowing they will do a fantastic job.

“Over my 22 years at Qantas, including the last 15 years as CEO, there are many accomplishments I am proud of. There have been many ups and downs, and it is obvious that much work remains, particularly in ensuring that we always deliver for our clients. However, I go with the knowledge that the business is fundamentally sound and has a promising future.

According to the BBC, Qantas has received a lot of criticism in the last two years for its high prices, frequent delays and cancellations, and its treatment of employees.

The Australian Competition and Consumer Commission (ACCC), the nation’s consumer watchdog, announced last week that it was suing the flag carrier over claims that it had sold tickets for thousands of flights that it had already canceled, a week after the airline announced a record A$2.5 billion ($1.6 billion) profit.

The airline is now being sued on three fronts as a result of the complaint, which was disclosed on August 31.

Additionally, it is defending itself against a class action lawsuit brought by consumers over its rigid flight credit program and appealing a decision that it unlawfully outsourced thousands of jobs during the Covid epidemic.

Investors are now under pressure from a number of parties, including some lawmakers, to reject Joyce’s ultimate compensation package, which may total up to A$24 million.

Joyce did not mention these concerns in his comments on Tuesday.