AIRLINES – AUSTRALIA

Alan Joyce to depart Qantas early

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Original article by Ayesha de Kretser,Joe Aston
The Australian Financial Review – Page: Online : 6-Sep-23

Qantas CEO Alan Joyce has stepped down with immediate effect, stating that recent events have made it clear that he should bring forward his retirement by two months and allow the airline to move ahead with its ‘renewal’ as a priority. Qantas has come under scrutiny over its role in lobbying the federal government to block Qatar Airways’ request for additional flights to Australia, as well as legal action by the Australian Competition & Consumer Commission over allegations that Qantas had sold tickets for more than 8,000 flights that it had already cancelled. Incoming CEO Vanessa Hudson will face the challenge of restoring Qantas’s reputation. Michele Levine, the CEO of Roy Morgan, which surveys the public regularly on the question of whether Corporate Australia is facing moral bankruptcy, says the poor behaviour of many of the economy’s corporate leaders reveals a moral blindness to what is ethical and in the community’s interest rather than solely in the shareholders’ interest.

CORPORATES
QANTAS AIRWAYS LIMITED – ASX QAN,ROY MORGAN LIMITED

Qantas complaints reach sky-high levels

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Original article by Ayesha de Kretser
The Australian Financial Review – Page: 3 : 2-Aug-23

An published draft document from the Airline Customer Advocate shows that it received a total of 6,918 complaints from airline customers in 2022, including some 4,000 complaints about Qantas. However, just 1,426 of the total number of complaints received were deemed to be eligible. The ACA says the 138 per cent increase in complaints year-on-year was to be expected, given that passenger numbers surged in 2022 after COVID-19 restrictions were lifted. The number of complaints in 2022 was also well above pre-pandemic levels; the ACA received 2,135 complaints in 2018, including 1,410 that were found to be eligible.

CORPORATES
AIRLINE CUSTOMER ADVOCATE, QANTAS AIRWAYS LIMITED – ASX QAN

Virgin first to test Labor’s bargaining laws

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Original article by David Marin-Guzman
The Australian Financial Review – Page: 6 : 28-Jun-23

The Australian Licensed Aircraft Engineers’ Association will oppose Virgin Australia Regional Airlines’ application to the Fair Work Commission for an "intractable bargaining" declaration. The ALAEA’s federal secretary Steve Purvinas says the union does not believe that the Virgin Australia subsidiary meets the requirements of the ‘Secure Jobs, Better Pay’ amendments to the Fair Work Act that took effect in early June. VARA commenced enterprise bargaining negotiations with the ALAEA in February 2021.

CORPORATES
VIRGIN AUSTRALIA HOLDINGS LIMITED, VIRGIN AUSTRALIA REGIONAL AIRLINES PTY LTD, AUSTRALIAN LICENSED AIRCRAFT ENGINEERS’ ASSOCIATION, AUSTRALIA. FAIR WORK COMMISSION

Qantas sets a course for $2.5bn profit

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Original article by Robyn Ironside
The Australian – Page: 13 & 16 : 24-May-23

Qantas has advised that its underlying profit for 2022-23 is expected to be within the range of $2.425bn to $2.725bn. This compares with a loss of $1.8bn for the previous financial year. The carrier’s quarterly update shows that air travel has rebounded from the pandemic-induced downturn; its domestic operations’ revenue is now at 118 per cent of pre-Covid levels, while its international arm’s revenue is at 123 per cent of 2019 levels. Meanwhile, seat capacity is now at 87 per cent of levels prior to the pandemic, and CEO Alan Joyce expects this to reach 93 per cent by the end of 2023.

CORPORATES
QANTAS AIRWAYS LIMITED – ASX QAN

Next Qantas CEO stares down $12.3b fleet revamp

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Original article by Lucas Baird
The Australian Financial Review – Page: 1 & 18 : 3-May-23

The pressing need to upgrade an ageing fleet will be a key challenge for Qantas veteran Vanessa Hudson when she succeeds CEO Alan Joyce in November. However, she is confident that Qantas will be able to manage the capital requirements of a fleet upgrade while continuing to reward shareholders. UBS estimates that Qants will need to spend $12.3bn on new airplanes between the 2024 and 2028 fiscal years, given that the average age of its fleet increased from 7.7 years in 2014 to 13.6 in 2022. Qantas chairman Richard Goyder has praised Hudson, noting that she has been in her current role of CFO during one of the most challenging periods in the airline’s history.

CORPORATES
QANTAS AIRWAYS LIMITED – ASX QAN

Virgin IPO could be tough sell as bankers question timing

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Original article by Aaron Weinman
The Australian Financial Review – Page: 13 & 18 : 18-Jan-23

Private equity firm Bain Capital is widely tipped to proceed with an IPO of Virgin Australia in the second half of 2023. The mooted sharemarket float could be well-timed, given that airlines are benefiting from a post-pandemic upturn in demand for travel and the reopening of Australia’s borders to international tourists. However, some observers are concerned that demand for travel may peak ahead of the float, as growing pressure on household budgets due to rising interest rates and energy bills prompts them to reprioritise their spending. Some bankers also suggest that the high cost of international airfares and a lower Australian dollar will benefit Virgin, which has shifted its focus to the domestic market under Bain’s ownership.

CORPORATES
VIRGIN AUSTRALIA HOLDINGS LIMITED, BAIN CAPITAL LLC

Virgin pledges net zero emissions by 2050

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Original article by Lucas Baird
The Australian Financial Review – Page: 18 : 8-Nov-21

Virgin Australia has committed to a target of net-zero carbon emissions by 2050, with Qantas having made a similar commitment in late 2019. Virgin Australia CEO Jayne Hrdlicka announced its pledge at an International Air Transport Association event, with the Association having voted for an industry-wide net zero commitment in October. Hrdlicka says that sustainable aviation fuels are crucial if airlines are to achieve net zero emissions by 2050, but she adds that there is no sustainable aviation fuel industry in Australia at present.

CORPORATES
VIRGIN AUSTRALIA HOLDINGS LIMITED, QANTAS AIRWAYS LIMITED – ASX QAN

Qantas accused of pilot underpay

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Original article by Robyn Ironside
The Australian – Page: 7 : 19-Oct-21

Former Qantas pilot Captain Andrew Hewitt has taken the airline to the Federal Court over what he contends is a shortfall in his termination payout. Hewitt, who is the son of former Qantas chairman Sir Lenox Hewitt, was among a number of pilots who were offered early retirement and redundancy packages when it stopped international flights because of the pandemic. Hewitt alleges that Qantas ‘shortchanged’ him by more than $92,000; a spokesman for Qantas says it intends to defend the claim being made against it by Hewitt.

CORPORATES
QANTAS AIRWAYS LIMITED – ASX QAN, FEDERAL COURT OF AUSTRALIA

Union scores another legal win over Qantas

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Original article by Robyn Ironside
The Australian – Page: 15 : 22-Sep-21

The Federal Court has rejected Qantas’s push to delay a preliminary remedy hearing with regard to the reinstatement of ground-handling staff whose jobs had been outsourced. The preliminary hearing had been scheduled for 1 October, but Qantas argued that it should be postponed until the carrier’s appeal against the Federal Court’s recent ruling in the case is heard in 2022. The court had found that Qantas’s decision to outsource 2,000 jobs was at least partly aimed at avoiding industrial action; the airline had contended that the move was solely aimed at achieving cost savings of $100m.

CORPORATES
QANTAS AIRWAYS LIMITED – ASX QAN, FEDERAL COURT OF AUSTRALIA

Virgin to reward the fully vaxxed

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Original article by Robyn Ironside
The Australian – Page: 15 : 2-Sep-21

Virgin Australia will offer incentives for both staff and customers to get COVID-19 vaccinations. Virgin wants all of its frontline staff to be fully vaccinated by 15 November, and they will be given the opportunity to win prizes such as business-class flights and a holiday on Hamilton Island, as well as extra annual leave. Virgin customers will in turn be offered rewards such as business-class flights and Velocity frequent-flyer points. Winners must have proof of vaccination to claim a prize.

CORPORATES
VIRGIN AUSTRALIA HOLDINGS LIMITED