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Qantas says sorry, shells out for improvements to win back Australians: ‘we know we’ve let our customers down’

  • The airline’s new CEO has issued an apology and vowed to cough up for so-called passenger improvements in a bid to restore its battered reputation
  • A spike in lost bags and flight cancellations under her predecessor frustrated fliers, coming at a time of record profits – and regulatory scrutiny

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Qantas signage outside a domestic terminal at Sydney Airport. The airline said on Monday that travel demand “remains strong”, even with its recent run of controversies. Photo: AP
Bloomberg
Vanessa Hudson, the new chief executive officer of Australia’s Qantas Airways Ltd, has started work trying to restore the airline’s battered reputation with increased spending on major customer bugbears such as on-board catering, call-centre staffing and redeeming loyalty points.
Less than three weeks after taking the helm, Hudson has been forced to fix stress points that fractured under predecessor Alan Joyce.

Since pandemic travel restrictions eased last year, a spike in lost bags, flight cancellations and telephone wait-times have frustrated passengers. The airline’s simultaneous record profits reinforced the perception that Joyce neglected customers to bolster the company’s bottom line.

Alan Joyce, former CEO of Qantas Airways Ltd., presided over a period of record profits but plummeting customer satisfaction with the airline. Photo: Bloomberg
Alan Joyce, former CEO of Qantas Airways Ltd., presided over a period of record profits but plummeting customer satisfaction with the airline. Photo: Bloomberg

In a statement on Monday, Qantas said it will spend an extra A$80 million (US$52 million) on so-called passenger improvements in the year ending June 2024, in addition to the A$150 million previously allocated for the job.

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There will be more and better trained workers in Qantas call centres, larger numbers of seats available for air miles, and more generous support for passengers when things go awry, the airline said.

As it attempts to woo back disgruntled passengers, Qantas is also being bashed by regulators, the judicial system and lawmakers. Australia’s top court this month ruled that the airline illegally sacked almost 1,700 ground workers during the pandemic, opening it up to compensation payments.

In August, the country’s competition watchdog sued Qantas for allegedly taking payment for seats on flights that were already cancelled. It wants a record fine to be imposed.
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