Pressure grows on chairman as Qantas scrutiny continues

Dominic Giannini and Kat Wong | September 26, 2023

Pilots have joined a chorus of anger against Qantas, calling on chairman Richard Goyder to stand down as scrutiny continues into the airline’s role in a government decision to reject extra Qatar Airways flights.

A parliamentary committee is examining the role Qantas’ lobbying played in the government’s decision to knock back the extra flights, as well as Australia’s bilateral air agreements more broadly. 

Its hearings are continuing in Brisbane on Tuesday and Canberra on Wednesday.

Among those giving evidence on Tuesday are the Productivity Commission, Alliance Airlines, Turkish Airlines, Australia-Qatar Business Council, Australian Chamber of Commerce and Industry and a number of airports and unions.

Transport Minister Catherine King has defended her decision to knockback the flights on national interest grounds but hasn’t elaborated on what that was. 

Qatar’s air authority has questioned the decision, given it has fewer flights than other Gulf nations and took aim at Qantas “negatively lobbying” against its expansion.

The Qatar Civil Aviation Authority accused Qantas of protecting its commercial interests over increasing competition for Australian consumers.

“Qantas has no reason for making such negative statements, except for the benefit of their commercial relationship with Emirates,” it wrote in a November pitch to the government that was not for public circulation.

“Unfortunately, it is evident that both airlines are interested in blocking Qatar Airways’ growth in Australia.”

Qatar’s 28 flights compares to Emirates’ 84 weekly flights and Etihad’s 63, and could add more than $3 billion in economic benefits over five years, it said.

While Productivity Commission deputy chair Alex Robson said the country’s international aviation policy had generally served Australia well, air services agreements could restrict airlines’ access to airports.

“(This) can impede competition between airlines, which matters because it can harm the community in many ways,” he told the inquiry on Tuesday.

These constraints can push up costs and airfares for consumers, which has led the Productivity Commission to suggest increasing the transparency of the government’s cost-benefit analyses and granting international airlines greater access to major airports. 

Qantas’ chairman, Mr Goyder, is also facing calls to resign in an unprecedented intervention after weeks of bad press.

The Australian and International Pilots Association has called for him to step down, the first time in its history, and has written to the airline’s CEO Vanessa Hudson about its decision.

The association’s president Tony Lucas blasted Mr Goyder for overseeing “one of the most damaging periods in Qantas’ history”.

‘(It) included the illegal sacking of 1700 workers, allegations of illegally marketing cancelled flights and a terribly managed return to operations after COVID-19,” he said.

“The morale of Qantas pilots has never been lower, we have totally lost confidence in Goyder and his board.”

Mr Goyder’s $100,000 pay rise to $750,000 “while staff are expected to accept a two-year wage freeze” was also in the association’s sights.

“This is a galling and tone-deaf decision,” Mr Lucas said.

“For our great national carrier to flourish, it needs leadership from a board that understands the value of its employees, respects its customers and can win back the trust of a nation.”

Government Services Minister Bill Shorten told Nine’s Today show Qantas workers had shown far more loyalty to the airline’s board and senior management than they had recently received.

“Qantas took a matter to the High Court and they were found to have illegally sacked their workforce,” he said.

“I don’t know what makes a board or a chairperson to resign these days.”

Senior National Bridget McKenzie agreed that Qantas had “not covered itself in glory”.