Alan Joyce with incoming Qantas CEO Vanessa Hudson. Source: AAP Image/Bianca De March
When a reputational crisis strikes it’s very human to look for a quick fix. But the problems now facing Qantas are a vivid lesson for companies everywhere.
As bad news keeps rolling in for the airline, with every critic and their dog lining up to stick the boot in, it’s clear Qantas is facing an ongoing reputational crisis. Plus a potential financial crisis too, with stockbroker Angus Aitken warning his clients last month that Qantas shares could fall 30% as the airline faces hefty spending on aircraft and its once-loved brand continues to dive.
But while the diagnosis is not in dispute, what can Qantas do to rebuild its reputation?
One thing seems very clear: looking for circuit breakers, big gestures – like handing back billions in COVID handouts or sacking the whole Board – is not the prescription.
For one thing, the company has a legal obligation to act in the best interests of its shareholders, and repaying billions of dollars to the government could well be challenged in court.
Such quick-fix responses might please some people but would have no substantive long-term impact on performance.
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