Alan Joyce: the Qantas boss who flew high and departed early

During his 15-year period as the head of Qantas, Alan Joyce managed to please investors while also frustrating customers with his relentless focus on making money.

It's quite possible that he never envisioned being perceived as a disadvantage, leading to an untimely retirement.

During the majority of his time at Qantas, Joyce stood out among other executives in Australia for his aggressive approach to conducting business.

Once upon a time, Qantas decided to suspend the operations of all their aircraft due to a disagreement between the company and its workforce.

There were significant earnings attained during a timeframe characterized by an unprecedented surge in customer grievances and a contentious reimbursement policy for travel credits.

However, there are now claims made by the competition authority that the airline has sold tickets for numerous flights that were already canceled. This arises amidst broader accusations that Qantas engages in "slot hoarding" to impede its rivals – an allegation that Qantas refutes.

Experienced governance specialist Vas Kolesnikoff stated that Joyce's abrupt departure illustrates the consequences when a chief executive officer, along with the organization under their guidance, no longer retains the backing of the general public.

"It's quite disappointing that a powerful era of leadership is coming to an end in such a deplorable manner," expressed Kolesnikoff, the chief of Institutional Shareholder Services' Australia and New Zealand research division.

It is undeniably apparent that the reputation of the customer brand has greatly suffered under Joyce's leadership, especially in recent times. Consequently, he is now facing the consequences of his actions.

Joyce's previously satisfied shareholders are now not as pleased, which partly justifies the decision to advance his retirement by two months.

Subscribe to Guardian Australia's complimentary morning and afternoon email bulletins to get a concise summary of the latest news every day.

The declining image of the airline and the imminent danger of facing substantial financial penalties have played a significant role in causing the airline's stock price to decline by over 12% in the last month. This decline persists despite Qantas' recent announcement of a record-breaking annual profit of $2.47 billion and a strong outlook for the future.

Groups responsible for overseeing the management and decision-making of Qantas have strongly advised the company's board to refrain from awarding substantial monetary rewards to Joyce and the rest of the top-level management.

In a statement released on Tuesday, Joyce officially declared his sudden departure from the airline. He acknowledged the need to accomplish certain tasks in order to meet customers' expectations. However, he reassured everyone by emphasizing the strong financial situation of the company he will no longer be a part of.

"I depart with the assurance that the company has a solid foundation and a promising future," Joyce expressed.

Australia’s Spirit: Shattered

The Irish-Australian entrepreneur is recognized for his unwavering dedication to work and strong emphasis on expenses, developed whilst leading Jetstar, Qantas' budget airline.

Budget airlines often function with limited profit margins, necessitating stringent cost management in order to achieve profitability.

"To operate a low-cost airline, one must possess a strong and unyielding disposition," stated Kolesnikoff. "Observing Joyce, one cannot find any criticisms that affect him. He firmly believes in his decisions to the point that he remains confident in being right, even if he may be mistaken."

His unwavering position was clear when he categorically declined to reimburse the sum of $2 billion in jobkeeper and other governmental aids, even after the airline experienced a remarkable resurgence to profitability levels surpassing those observed prior to the pandemic.

"Should we offer a reimbursement for that? Absolutely not, as we have delivered a service," he expressed in February.

Moreover, Qantas engaged in illicit externalization of numerous ground handler positions amidst the pandemic. Qantas is now seeking to challenge this matter in the court of higher jurisdiction.

However, Joyce showed equal determination when he backed Rugby Australia in their choice to terminate Israel Folau's contract following his homophobic remarks, while Qantas served as the sponsor for the Wallabies at that period.

Joyce entrusts the airline's management to the newly appointed CEO, Vanessa Hudson, who is confronted with irate travelers and disappointed stockholders.

In addition to the numerous hurdles she faces, Hudson will have to contend with the potentially harmful legal proceedings initiated by the regulatory body in charge of ensuring fair competition.

On Tuesday, Michele O'Neil, the president of ACTU, expressed that Joyce had violated the essence of Australia, alluding to the motto of the airline.

"While we are glad to see Alan Joyce leave, what truly needs to be eradicated is the prioritization of profit over the well-being of individuals," O'Neil expressed.