Vanessa Hudson must guide airline through headwinds
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Incoming Qantas chief executive Vanessa Hudson is stepping into a job with a public profile like few others, but also with looming challenges.

Hudson, a 28-year company veteran, will become the first female CEO in the airline’s 103-year history when she succeeds Alan Joyce in November. 

Few jobs in corporate Australia can rival that of Qantas boss for scrutiny by customers, commentators and politicians.

Vanessa Hudson, the incoming Qantas CEO, faces big challenges in the years ahead. (Photo: Rhett Wyman/SMH) (Nine)

Many Aussies have a strong emotional attachment to the business, regarding it as the national airline, and reinforced by Qantas advertising that pulls the heartstrings.

Business expert and economist Tim Harcourt told 9news.com.au there is “no bigger brand” in Australia than Qantas, and its boss occupies a rarified place in the public consciousness.

“It’s one of the country’s biggest jobs in the eyes of Australians,” he said.

“First there is prime minister, then captain of the national cricket team, followed by Qantas CEO, in the eyes of the public.”

Harcourt, professor and chief economist at the Institute for Public Policy and Governance (IPPG) at the University of Technology Sydney, said the appointment of Hudson this week by Qantas Chairman Richard Goyder signalled a big shift for the carrier.

During Joyce’s 15 years in charge, he oversaw healthy dividends for shareholders.

But they often came at the cost of deep job cuts in the business, which Joyce was determined to push through.

In 2011 he showed he was prepared to play hardball when he famously grounded the Qantas fleet and locked out workers during collective bargaining with unions.

Wait times to reach Qantas call centres have blown out massively in 2022.
Qantas will have to pay $12 billion in coming years to renew its aging fleet. (Chris Hopkins)

Now, with the appointment of Hudson, the days of the high-profile chief executive at Qantas seem over.

“She is not well-known and has worked in the backroom at Qantas,” Hudson said.

“But her challenge will be going from the backroom to the front office.”

And Hudson can expect some headwinds in the years ahead.

The biggest challenge will be finding an estimated $12.3 billion between the 2024 and 2028 financial years to pay for new Qantas aircraft.

Last year Simple Flying reported the average age of a plane in Qantas’ fleet is 15 years -the highest of any major international airline in Australia.

In comparison, the average age of an aircraft for competitors such as Emirates and Cathay Pacific is about 10 years.

Qantas CEO Alan Joyce.
The 15-year tenure of Qantas CEO Alan Joyce was marked by healthy dividends for shareholders but also industrial disputes. (Janie Barrett)

Hudson, who most recently was Qantas’ chief financial officer, said she would be able to balance the looming fleet renewal with expectations from the airline’s shareholders.

But investment expert Jun Bei Liu, of Tribeca Investment Partners, warned Qantas will have to contend with turbulent business conditions.

”Going forward, the next 12 months, is going to be very challenging because we have more competition coming in, we have the Asian airlines returning (to Australia) we’re and heading into a slowing consumer environment,” she told Today this week.

“It is going to be a very challenging period where you have to spend a lot of money.”

Hudson has also placed repairing the trust of Qantas customers and its workforce as a priority.

On Tuesday, after the announcement of her CEO appointment, Hudson said she was looking forward to meeting trade union leaders and developing a “constructive relationship” with them.

In 2021, the federal court ruled that Qantas had illegally outsourced about 1700 ground staff workers during the pandemic.

The airline then started a High Court appeal to avoid paying compensation over the move.

Michael Kaine, the national secretary of the Transport Workers Union (TWU), said the appointment of Hudson was an “opportunity” to reset workplace relations at the airline.

A century of Qantas: From outback airline to global giant

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