Qantas board urged to withhold bonuses of Alan Joyce and senior executives

The board of Qantas has been urged to hold back the millions of dollars in bonuses for Alan Joyce and other top executives. This urging comes after the airline admitted that its reputation has been severely damaged and as more people are calling for an investigation into the airline's close ties with the government.

According to Rachel Waterhouse, the CEO of the Australian Shareholders' Association, the airline's board should promptly take action if they truly intend to regain public trust, following the unexpected legal action initiated by the consumer watchdog last week.

Qantas received a surprising blow on Thursday from the Australian Competition and Consumer Commission (ACCC) as they revealed legal action against the airline for allegedly selling tickets to over 8,000 flights that were already canceled.

Waterhouse mentioned that considering the potential lengthy duration for the court proceedings, it is imperative for Richard Goyder, the chair, to take action promptly.

"It's a matter of maintaining one's public image, and the board bears the responsibility for overseeing that," stated Waterhouse.

The company's brand and stock value are declining. It may be necessary for them to make certain choices like suspending bonuses or reassessing their compensation packages.

The problems confronting Qantas are swiftly evolving into a significant business hurdle for the airline, mirroring the difficulties experienced by Commonwealth Bank in 2017 regarding their management of allegations related to money laundering.

As a reaction, the former CBA chair, Catherine Livingstone, promptly eliminated the bonuses for top-level executives, while some also experienced a reduction in their pay.

That's similar to another entity that actually made substantial alterations upon discovering something.

The shares of Qantas are being pulled down due to the possibility of facing heavy fines worth hundreds of millions of dollars and also facing damage to their reputation. This has resulted in their value dropping by over 12% in just a month, despite the fact that they have recently reported their highest-ever profit.

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Experts have observed that the easiest method to diminish the outgoing Chief Executive Officer's payment, Alan Joyce, would be to retain approximately $4 million in incentives that he was originally going to receive.

On Monday, John Sharp, the deputy chair of Rex Airlines and competitor to Qantas, stated that the Qantas board would now have justification for reviewing the significant amount of money in stocks and rewards that Alan Joyce is set to receive. It is anticipated that Joyce's final compensation upon leaving his position in November could reach a staggering $24 million.

Sharp stated on ABC Radio that Qantas has once again emerged as the company with the highest number of complaints to the ACCC in Australia, which is a noteworthy aspect for the board to consider while evaluating the eligibility of granting bonuses to senior executives.

In the meantime, the opposing party at the federal level is advocating for a Senate investigation into the decision made by the Albanese administration to deny Qatar Airway's appeal for 28 extra weekly flights to Australia's primary entry points, namely Sydney, Melbourne, Brisbane, and Perth.

The transport representative from the opposing party, Bridget McKenzie, is suggesting an investigation to reveal more information about the decision made regarding Qatar. The intention of the investigation is to have a focused and brief inquiry that will increase the pressure on the transport minister, Catherine King. So far, King has provided multiple justifications for the rejection while stating it was done in the best interest of the country.

The Green party members will strive to obtain documents pertaining to the Qatar decision, as they raised concerns over whether the intervention by government officials was intended to safeguard the financial interests of Qantas. It is believed that the Green party will discuss McKenzie's investigation in the Senate during their meeting on Tuesday.

Nevertheless, trade associations are seeking a more comprehensive investigation to assess the level of competition within the Australian aviation industry. The ACCC's probe revealed allegations concerning the misuse of slots by Qantas, but unfortunately, these claims will not be included in the forthcoming legal proceedings.

In addition to that, Sharp leveled allegations at Qantas, claiming that they were engaging in aggressive behavior towards smaller airlines. He expressed his wish that the ACCC's legal action would successfully prompt Qantas to modify their actions.

Numerous individuals from various sectors, who preferred to remain unidentified, expressed their apprehension that the discussion regarding Qantas was excessively fixating on the Qatar resolution, as there are greater opportunities for political criticism when it comes to targeting King.

The government persistently justified inquiries regarding the impact of Qantas on its choice to hinder Qatar's appeal in both parliamentary chambers. Anthony Albanese refuted any involvement in safeguarding Qantas against additional rivalry and affirmed that Joyce had not individually approached him concerning the matter.

Flight Centre is also facing mounting pressure, as they have initiated a advertising campaign opposing the Qatar verdict. Additionally, Queensland's deputy premier, Steven Miles, expressed his desire for a rational resolution, hoping that the decision made by Qatar Airways could be overturned to enable more flights to his state.

The leader of New South Wales, Chris Minns, and the government of Victoria, maintained that the matter should be handled by the federal government.

Earlier in the day, Qantas acknowledged that its image had already been severely affected in various ways before the regulatory agency initiated legal proceedings, and it will require a considerable amount of time to restore its reputation among the Australian public.

In a detailed announcement, Qantas expressed that it is currently examining the assertions, yet acknowledges that these accusations have understandably raised considerable worry among our clientele, staff, and the wider public.

Qantas expressed that the accusations from ACCC arrive during a period when their reputation has already suffered substantially on multiple fronts.

"We aim to assure the community of our attentiveness and comprehension of their dissatisfaction. Recognizing that the sole solution lies in providing consistent service, we acknowledge the need for a gradual restoration process. Our unwavering commitment drives us to accomplish this goal."

Further investigation by Paul Karp, Tamsin Rose, and Adeshola Ore