A new Irish world

There is no question that Geoff Dixon has been an outstanding CEO for Qantas and has led the group through some of the most turbulent times in the airline industry’s history.

He also inherited an airline that had missed commercial opportunities in the 1990s such as the 777-200ER and seat back videos for economy passengers.

And some influential Qantas staff and middle management are seemingly locked in a 1980s time warp.

Dixon in recent years has understandably become jaded trying to explain year in year out the Qantas value to local market analysts whose whims can send the airline share price plummeting in seconds.

However, he was also the architect of the ill-fated Airlines Partners Australia bid to hijack the airline, and failed to jump on board the 777-300ER as a 747-400 replacement and the 777-200LR to operate London-Sydney non-stop.

But one of his smartest moves was to walk away from Ansett – for $1 – in September 2001, and then he struck a tremendous deal with Boeing for 60 737-800s in early 2002 in the depths of a buyer’s market for airliners.

And it is probably far too simplistic to solely blame Dixon for the negatives and the airline’s lamentable industrial relations – a highly complex and fraught issue.

But whatever the bouquets or brickbats, and hindsight is a wonderful perspective, it is time to move on to a new era under Joyce.

Joyce is far more in the mould of Air New Zealand’s standout CEO Rob Fyfe who has turned the management/ staff relationship norms on their ears with his refreshing walk-the-walk style of leadership.

Once a month Fyfe and his management team clean planes, serve passengers, load bags, check passengers and work graveyard engineering shifts.

And once a month Fyfe hosts a BBQ on the terrace outside the open plan top floor management offices.

Sure the airline’s smaller than Qantas, but it’s only a matter of scale.

But while the pilots and engineers have welcomed Joyce’s appointment, nothing changes when it comes to the value/productivity/ cost equation.

The cold hard reality – that Dixon preached – is that Qantas’s future in this world of globalisation is not guaranteed and if disgruntled engineers keep leaking “horror stories” to the lay media the day of reckoning will indeed come.

Joyce must give staff a vision, a purpose, he must lead by example and he must tear down the office walls at Coward Street Mascot.

Sir Rod Eddington once told this writer that changing airline culture was like performing an engine change in flight. That is Joyce’s challenge because the culture in some areas of Qantas middle management is broken, while morale at the coal face is at a low ebb.

Joyce headed off Qantas CFO Peter Gregg and John Borghetti, GM of Qantas for the top job, but it is to be hoped that both Gregg and Borghetti stay on as their contributions are important.

Gregg has had a firm and successful hand on the financial dynamics of the group while Borghetti has developed the Qantas product into one of the world’s best.

Its domestic service offering is second to none.

Joyce’s appointment comes as Qantas battles relentless media attention, reminiscent of the late 1990s, when arrogance abounded at the airline.

While showing respect for Dixon, Joyce needs to act decisively to change attitudes, and if that change is not immediate then the axe is next.

Qantas enjoys the world’s best brand reputation but it is not the world’s best airline. Cathay Pacific, Singapore Airlines, Emirates and Air New Zealand are more innovative.

Sure, Qantas’s costs are higher, but none of those airline’s enjoys a massive domestic market, a monopoly on domestic business class travel and a booming economy.

The last time Qantas was first with a market initiative was introducing business class in early 1979 – just ahead of Pan Am and British Caledonian.

Qantas’s problems can be best summed up by a discussion this writer had with a doctor who is a Qantas Chairman’s lounge member who had twice saved Qantas the massive cost of diverting with an inflight medical emergency.

He was never thanked by the airline and when this writer brought this extraordinary oversight to the attention of the airline’s management there was still no follow through.

Joyce must follow through as he has done at Jetstar – get out and smell the coffee – because the majority of the staff are fiercely loyal and professional.

It’s high time Qantas followed Air New Zealand’s lead: look after the staff and the staff will look after the passengers – as never before – and the passengers will look after the shareholders! Likewise, it’s high time some of the unions representing Qantas staff embraced the stark reality of the airline industry today and into the future.