The Albanese government, and Qantas investors, staff and customers are all bracing to be hit by more turbulence.
The warning lights have been flashing at Qantas for more than 12 months. But after the Australian Competition and Consumer Commission launched extraordinary legal action against the airline on Thursday,, the cockpit alarms are now blaring.
But most of all, this is a company that counts a huge chunk of the population as customers. There would be few Australians who haven’t flown Qantas in the past decade, and while that has fuelled the airline’s dominance, it is now compounding the loss of trust Qantas has suffered. “We’re in the strongest position that we could have been with our balance sheet, but also with the work that’s been done to be able to deliver that future, and really confidently do that,” she told a packed media conference.
But on Monday, Assistant Treasurer Stephen Jones effectively suggested the government had chosen to protect Qantas’ viability and profitability over lower fares. Another way for the government to put distance between itself and Qantas would be to use its aviation green paper – due out in coming weeks – to take a more proactive stance on competition and consumer matters.
For Qantas chairman Richard Goyder and Hudson, the question of how much political clout Qantas has lost, and what ramifications that might have, is tomorrow’s problem. Qantas executives who’ve delivered a record profit might well feel investor focus on pay is unfair, but this is surely a moment for reflection for the board and management team as to whether Qantas has struck the right balance between short-term profitability and long-term sustainability.
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