There are some burning questions leaping off the page on today’s very interesting Fairfax story on
Qantas calling in consultants, again.
One is why would any senior executive at Qantas take two month’s leave, as is reported to be the case with Simon Hickey, the first CEO of the newly formed independently managed Qantas international division.
Yes, there can be really serious issues in private lives. But when or if they arise they usually require a resignation, not prolonged leave.
This is because of the nature of the position, the need for continuity of leadership, and this very crucial stage on the Qantas story post the Emirates partnership starting, which is a wide ranging restructuring of Qantas international and all of the on going decisions that will be needed to get the best synergies from the new arrangement.
Qantas is an enterprise that has ceased to pay dividends and has an utterly trashed share price. It has been filing some very sobering traffic reports with the ASX in recent months suggesting that it has been wounded by engaging in a capacity war, as well as the acknowledged pressure that competition has placed on yields, and it has even extended that observation to its Jetstar operations.
Management is responsible for what happens to this company, and it is a moot point that calling in consultants would be of value if all that they do is point to management failings, which are self evident from the share price and the traffic reports .
For those impatient for Qantas to exercise its options on Boeing 787-9s, which can be delivered from 2016 on should they be exercised in a timely manner, these are worrying signs