"Qantas"

Qantas has embarked on a significant overhaul of its governance practices following a review that identified shortcomings in decision-making and stakeholder trust.

The review, initiated in October 2023, examined the Board’s actions over the preceding year and their impact on customer service and reputation.

A key finding of the review was that the Board and management made mistakes that contributed to these issues. However, the report did not uncover any evidence of deliberate wrongdoing.

The Key Changes in Outline

In response to the review’s recommendations, the Qantas Board, led by Chairman Richard Goyder and Chairman-Elect John Mullen, has committed to implementing a comprehensive set of changes. These changes encompass the following key areas.

Enhanced Board Reporting

The Board will receive more detailed reports on customer metrics, employee engagement, and stakeholder relations. This increased transparency will allow the Board to make more informed decisions and better understand the impact of their actions.

Remuneration Framework Revision

The Qantas remuneration framework is being revised to ensure better alignment with company performance and stakeholder interests.

This will help to incentivize the Board and management to make appropriate decisions. It will further ensure that these decisions are in the best long-term interests of the airline.

Share Trading Protocols

The Group CEO and senior management will implement tighter protocols for the approval of share trading by the Group CEO and senior management. This will help to mitigate potential conflicts of interest and ensure that insider trading is prevented.

Stakeholder Engagement

The Board will have a more active role in general consultation. It will effectively have greater oversight in approving Qantas’ involvement in significant stakeholder and community issues.

This will ensure that the airline is acting in the best interests of all stakeholders. It will further ensure that the Group remains responsive to community concerns.

Broader Reforms & Leadership Transition

In addition to these specific actions, Qantas is undergoing a broader organizational transformation. This includes the appointment of new Independent Non-Executive Directors to the Board. It will see the commencement of a leadership transition with the selection of a new Group CEO.

Qantas is actively implementing changes to bring fresh perspectives and expertise to the company and ensure it is well-positioned for the future.

As previously announced, Chairman Richard Goyder will step down on September 16, 2024. John Mullen, who joined the Board in April of this year, will succeed him as Chairman, subject to shareholder approval at the upcoming AGM.

John Mullen, Qantas Chairman-Elect, emphasized the importance of learning from past mistakes and rebuilding trust with stakeholders.

He acknowledged the progress made by the new management team but stressed the ongoing need for continued improvement.

Conclusion

Qantas is implementing the review’s recommendations to achieve stronger governance, improved decision-making, and ultimately, better outcomes for all stakeholders.

This multi-pronged approach indicates a commitment by Qantas to regaining stakeholder trust and ensuring the airline’s long-term sustainability.

The Qantas governance review and subsequent actions represent a significant step towards rebuilding trust and ensuring the airline’s future success.

By implementing the recommended changes and fostering a culture of transparency and accountability, Qantas can position itself for long-term growth and profitability.

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The Qantas Board has concluded its review of executive remuneration for the 2023 financial year. The review has seen the Group trim almost $10 million from former CEO Alan Joyce’s remuneration package.

Other Group directors and executives also face cuts in the wake of the turbulent times which the national airline Group has weathered.

Incentives Cut in Turbulent Times

Last September, the Board announced a 20% cut in short-term incentives for Group Management Committee members. This decision came in response to challenges facing Qantas and acknowledged the impact on customers and brand reputation.

Further action was taken when the Board withheld the remaining FY23 short-term incentives for senior executives.

This move was prompted by the Australian Competition and Consumer Commission (ACCC) proceedings and a High Court ruling on Fair Work Act breaches related to ground handling outsourcing.

The 2023 Annual Report’s Remuneration section outlined these actions and noted the Board’s ability to adjust both short-term and long-term incentives.

Multiple factors contributed to damaging Qantas’ reputation and relationships with stakeholders. As part of an ACCC settlement, Qantas admitted to misleading customers about flight cancellations.

Pending Federal Court approval, the airline will pay a $100 million penalty and implement a $20 million customer compensation program. Penalties for Fair Work Act breaches are yet to be determined.

The Key Remuneration Cuts

The Board’s decisions were also informed by findings from the recently released Governance Review.

While no deliberate wrongdoing was found, the review highlighted mistakes by both the Board and management that led to significant reputational and service issues.

Key remuneration decisions include:

Former CEO Alan Joyce’s FY23 pay will be reduced by $9.26 million:

– 100% forfeiture of shares from the 2021-2023 Long Term Incentive Plan, worth $8.36 million

– 33% reduction in his FY23 short-term incentive, valued at about $900,000

Current and former senior executives will face a 33% cut in FY23 short-term incentives, totaling approximately $4.1 million (including Joyce’s reduction). The total reduction of 33 per cent for Mr Joyce and the other affected current and former senior executives will be implemented through a reduction in the deferred share component of the 2022-2023 STIP.

Current Non-Executive Directors who served during the relevant period will take a 33% cut in their base fees this year

The Board considered individual and collective accountability of Group Management Committee members when making these decisions.

It also acknowledged their efforts in guiding Qantas through the pandemic and subsequent recovery challenges.

As CEO, Alan Joyce held overall responsibility for the company’s performance. This has been reflected in the complete forfeiture of his 2021-2023 LTIP shares that vested in August 2023.

These measures aim to address recent issues while recognizing the complex challenges faced by Qantas leadership during a turbulent period.

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Qantas is set to transform ultra-long-haul air travel with its Project Sunrise flights, featuring an innovative cabin lighting system. The system is inspired by the vibrant hues of the Australian landscape.

This scientifically designed lighting system aims to minimize jetlag and enhance passenger wellbeing on nonstop flights connecting Australia’s east coast with London and New York.

A350 Cabin Lighting System

The revolutionary lighting system is the result of an extensive collaboration between Qantas, Airbus, the University of Sydney’s Charles Perkins Centre, and Caon Design Office.

Over 150 hours of testing were conducted at the Airbus Customer Definition Centre in Hamburg. Here the team created and evaluated hundreds of lighting patterns and sequences in an Airbus A350 cabin mockup.

Qantas International CEO Cam Wallace emphasized the significance of this scientifically informed lighting design.

“These world first flights have been an opportunity for us to work with experts and build on our experience of long haul flying. We rethought the inflight experience with a focus on customer wellbeing and combating the effects of jetlag.”

The lighting system’s development was guided by research conducted by Qantas and the Charles Perkins Centre during Project Sunrise test flights.

This study revealed potential strategies to reduce jetlag by reshaping the inflight experience.

Using circadian rhythm modeling, researchers determined the optimal light spectra to promote circadian adaptation, sleep, and wakefulness.

12 Unique Lighting Scenes

The result is a series of 12 unique lighting scenes tailored specifically for Project Sunrise flights. These include “Awake,” featuring broad spectrum, blue enriched lighting to help passengers adjust to their destination time zone.

The “Sunset” setting transitions from daytime to night through a mesmerizing array of sunset colors. This culminates in a night sky effect with moonlight and slow moving clouds.

The “Sunrise” scene dynamically replicates an Australian sunrise, gradually illuminating the cabin from front to rear.

Australian Industrial Designer David Caon has been working on Qantas cabin designs for over five years. He explained the crucial role of lighting in passenger wellbeing.

“Aircraft lighting doesn’t cross the mind of most travellers. The external light cycle of night and day has more impact on our circadian rhythm and the impact of jetlag than any other factor.”

Wellbeing Zone

One of the most innovative features of the Project Sunrise A350 is the Wellbeing Zone. This is a dedicated area between Premium Economy and Economy cabins.

This space, which recently won a Crystal Cabin Award for Passenger Comfort, offers passengers a chance to stretch, and engage in guided exercises. They can enjoy refreshments as they take a break.

The zone features its own specialized lighting, with a daytime sky effect to promote wakefulness. It switches to a moonlight inspired scene for rest periods.

In a first for Qantas, passengers in the six enclosed First Suites will have access to a fully customizable lighting sequence.

This allows travelers to choose their preferred time zone for the entire flight. the system offers an unprecedented level of personalization in air travel.

Joost van der Heijden, SVP & Global Head of Marketing at Airbus Commercial Aircraft, praised Qantas’ utilization of the A350’s advanced lighting capabilities.

“Qantas has taken full advantage of this unique lighting system to create science based specific effects. It will help passengers adapt to the changing time zones. This will contribute to their well-being on the world’s longest commercial flights.”

Dr. Sveta Postnova from the Charles Perkins Centre lauded the project as a successful translation of circadian science into practice. She highlighted the collaborative effort that brought together expertise from various fields.

Summary

The unveiling of these customized lighting schemes took place at Airbus’ Airspace Customer Showroom in Toulouse. It marks the latest step in the Project Sunrise program.

As Qantas prepares to launch these ultra-long-haul flights, the innovative lighting system, combined with specially designed cabins, tailored meal planning, and integrated movement programs, promises to redefine long distance air travel.

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For frequent flyers accustomed to a luxurious Melbourne-Perth hop on Qantas’s flagship QF9 787 Dreamliner route to London, an upcoming change may ruffle some feathers.

As of July 12th, 2024, the Boeing 787 Dreamliner service that has graced this domestic leg will be axed.

Passengers traveling from Melbourne will now need to connect via a separate domestic flight to Perth before boarding the 787 for the long haul to London.

Dreamliner Allocation to Long-Haul Routes

This shift in strategy by Qantas stems from two primary factors. Firstly, the airline is keen to maximize the utilization of its 787 fleet on lucrative long-haul international routes.

The Dreamliner’s efficiency and passenger comfort make it ideal for journeys like the recently launched direct flights from Perth to Paris.

Secondly, Qantas is currently experiencing a shortage of 787s. Their current fleet doesn’t quite meet the demands of their ambitious route expansion plans.

While they recently received their 14th and final 787 from the manufacturer, the next batch isn’t expected until 2027. This gap necessitates strategic redeployment of their existing Dreamliners.

Melbourne-Perth Aircraft Deployment

The consequence for Melbourne passengers is a loss of direct connection and a potential downgrade in comfort for the domestic leg.

Qantas offers several daily flights on the Melbourne-Perth route, but the replacement aircraft for the Dreamliner are a mix of Airbus A330s and Boeing 737s.

While the A330 offers a comparable business class experience, it lacks the premium economy option available on the 787.

The single-aisle 737, a workhorse of domestic travel, might not be the most desirable choice for a four-hour flight, particularly for those accustomed to the wider cabins and amenities of the Dreamliner.

QF773 Service from August

However, there’s a silver lining. Qantas is showing a 787 operation on the Melbourne-Perth route, albeit with limited frequency.

Starting in August 2024, the Australian flag carrier lists a single weekly flight (QF773) operated by the Dreamliner. This offers some relief for Melbourne passengers who prioritize a seamless and comfortable travel experience.

The long-term implications of this change remain to be seen. While Qantas emphasizes its commitment to connecting Melbourne to key international destinations, some speculate this might be a cost-cutting measure.

The airline’s historical ties to Melbourne, evident in the pre-existing Melbourne-London leg, could be a point of contention for some passengers.

For travelers departing from Melbourne, it’s crucial to stay informed about the latest schedule updates.

Double-checking your itinerary to confirm the aircraft type for each leg is essential to avoid any surprises.

While the connecting flight adds an extra step to the journey, Qantas’s domestic network offers a good selection of flights to choose from.

Conclusion

Ultimately, the decision to reroute the QF9 Dreamliner reflects Qantas’s strategic focus on maximizing the capabilities of its fleet.

While Melbourne passengers lose a direct connection and potentially some comfort on the domestic leg, the airline prioritizes long-haul international routes and optimizes resource allocation.

The lyrics of the old Crowded House song ‘Don’t Dream its Over’ spring to mind.

With the return of a limited 787 service, Qantas attempts to strike a balance between catering to a broader network and offering a premium experience for select Melbourne travelers.

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Qantas Group ushered in a new era of comfort and sustainability for Tasmanian travel with the first-ever landing of its next-generation Airbus A220 aircraft in Hobart.

The new narrowbody jet touched down at Hobart Airport for the first time today. This marked the beginning of an upgraded travel experience for both tourists and locals.

The inaugural A220 flight arrived from Melbourne at 11:20 am, coinciding with the exciting announcement of a brand new Qantas Club planned for Hobart Airport.

This investment further underscores Qantas’ commitment to enhancing the overall travel experience in Tasmania.

Qantaslink A220 ‘Minyma Kutjara Tjukurpa’

The christened aircraft, “Minyma Kutjara Tjukurpa,” features artwork by renowned Pitjantjatjara artist Maringka Baker.

The artwork depicts a powerful Dreaming story, symbolizing journeys across vast distances. This beautifully decorated A220 signifies the start of QantasLink’s fleet modernization program.

This will see the phasing out the older Boeing 717s with these advanced A220s. Passengers on the Melbourne-Hobart route can expect up to 26 A220 flights per week. The A220 service will extend to Melbourne-Launceston starting November 12th, 2024.

Beyond its symbolic significance, the A220 boasts a significant leap forward in passenger comfort and environmental friendliness.

The cabin features an ultra-modern design with large windows, ample overhead locker space, and a noticeably brighter and airier feel.

Passengers can enjoy complimentary high-speed Wi-Fi, specially designed seats for enhanced comfort, and a greater sense of personal space throughout the flight.

New Hobart Qantas Club Lounge

Qantas, along with Jetstar, has also solidified a long-term agreement with Hobart Airport for a brand-new Qantas Club lounge.

Scheduled to open in 2027, this new facility will nearly double the current capacity and showcase the best of Tasmanian produce, offering a truly local pre-flight experience.

“We’re thrilled to introduce the A220 to Tasmania and the feedback we’ve received so far has been outstanding,” shared Andrew Parker, Qantas Group Executive, speaking from Hobart Airport.

“Tasmania is a leader in eco-tourism, making it the perfect environment for our A220s. These aircraft not only elevate passenger comfort but also generate 25% less emissions per seat and a remarkable 50% noise reduction compared to their predecessors.”

Mr. Parker continued, “The A220’s size and efficiency perfectly suit many Tasmanian routes, and this is just the beginning.”

“As we receive more aircraft in the coming months and years, we’ll be progressively adding A220 services. Our collaboration with Hobart Airport on the new Qantas Club reflects our dedication to providing a top-tier travel experience for all our customers.”

“Once completed, this expanded lounge will offer nearly double the space and a wider selection of Tasmanian delicacies.”

Qantas A220 Features

Key features passengers can look forward to on the Qantaslink A220:

• Seating capacity for 137 passengers in two cabins: 10 Business Class seats in a comfortable 2-2 configuration and 127 Economy Class seats in a spacious 2-3 layout.
• Unparalleled window size for a single-aisle aircraft, creating a bright and airy cabin environment.
• Complimentary high-speed Wi-Fi to stay connected and access the improved Qantas Entertainment App for onboard streaming.
• Integrated personal device holders with USB A and C charging ports in both cabins, with an additional wireless charging pad in Business Class.
• Enhanced comfort in Economy Class with seats featuring extra padding compared to the 717.
• A significant 20% increase in overhead locker space for all passengers.
• A dramatic reduction in noise footprint (up to 50%) and carbon emissions (25% per seat) compared to the replaced aircraft.

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