Barely three years after its entire fleet was grounded, Qantas Airways has never been more profitable. But as Australia’s national airline has emerged stronger from the pandemic, it has alienated its most important constituency: Australians.
They bemoan that its flights are unreliable and expensive. They are aghast at how government protectionism has made Qantas by far the biggest airline in Australia and pushed up the price of travel. They are stunned by allegations that it sold tickets for flights it never intended to fly. They cannot square how Qantas unfairly laid off hundreds of workers, then handed out enormous paychecks to its chief executive and board of directors.
Now, as the baying for blood intensifies, labor unions and lawmakers are calling on the company’s board to resign en masse.
The anger is personal for Australians, who feel profound ownership over the carrier that bills itself as “the spirit of Australia,” said Geoffrey Thomas, the Perth-based founder of AirlineRatings.com. “We’re fiercely proud of it — so we expected better of it.”Qantas is rooted in Australian aviation history and long enjoyed a reputation for safety and comfort. Air travel is an indispensable part of everyday life in this sparsely populated country roughly the size of the United States, with some cities hundreds of miles from the next major center. Qantas operates three of every five commercial domestic flights, and signing up for a Qantas frequent flier account is a rite of passage for many.
The recent scandals, which many Australians see as betrayals, sting acutely.Qantas may be scrambling to apologize — but its balance books are in exceptional health. Last month, it posted a record annual profit of 2.47 billion Australian dollars, about $1.6 billion, as well as multimillion-dollar bonuses for the previous chief executive, Alan Joyce, and other top brass, and a share buyback program of 500 million Australian dollars.
Those blockbuster results have come at a cost, with the pursuit of short-term profits above all else tarnishing the brand in some customers’ eyes, said Angus Aitken, a Sydney-based stockbroker and the founder of Aitken Mount Capital Partners. “Profitability is one thing, but you also have to look after your clients.”A 25-Million-Year-Old Koala: The discovery of a fossil hints at the existence of an animal that researchers say could be the missing link in the understanding of evolution of marsupials in Australia.
Energy Plants: Hundreds of people at Chevron’s liquefied natural gas plants in Western Australia halted work after union negotiations over pay and working conditions stalled. The action affects two giant projects that account for about 6% of the world’s supply of the essential fuel.
A Cat Problem: Feral cats have long been recognized as a major threat to the continent’s native wildlife. Now the government is considering new restrictions on domestic cats, too.
A Divided Nation: A referendum to set up an advisory body in Parliament for Aboriginal people was envisioned as uniting Australia. The opposite has happened.
Investors have taken note: Qantas shares have fallen 20 percent since July.
Mr. Joyce, who is credited with turning the company around after the global financial crisis, tried to quiet the din in early September, resigning as chief executive two months before he was scheduled to step down. But since then, Qantas has not been able to move on, lurching from one challenge to the next as new difficulties seem to come to light in the Australian news media almost
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