Unusual but interesting story finds (leaked?) its way into the business press today, which I find worth posting considering August is fast approaching us, reporting season.
Qantas has hired high-level consultants to run the ruler over its senior executive team, including assessing the performance since the split of the airline's domestic and international flying operations.
BusinessDay has learnt that the consultants have been meeting the airline's senior executives for several weeks as part of an overview of the company.
Sources said the latest hiring of consultants was not about succession planning, despite Qantas chief executive Alan Joyce being set to notch up five years in the top job in November. ''[But] everybody in the organisation is wondering what this consultancy group is going to come up with,'' one said.
The airline has hired consultants regularly in the past - most notably Bain & Company - but this time it is believed to have brought in consultants from another firm to look at the airline's structure. Qantas has had a long association with Bain. Jetstar chief executive Jayne Hrdlicka was a former senior partner at Bain and advised Qantas before she joined the airline in 2010.
How can Joyce scrutinize anyone when HE and his mates on the board are the problem?
The matter is absurd to say the least and a COMPLETE waste of the shareholders money.
Is it too much for the board to accept the blame for the lack of return to shareholders? Not if they can get away with it, and you can be sure that the bar will be set very low for these tossers, if at all.
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
Possibly the ambulance has arrived now seeking the chaser...
I'm still a believer of Sunfish's theory of a (now not so stealthy) QF takeover by Emirates... so is this the way that someone high up in QF gets the boot and an (ex)Emirates' employee will be installed?
Last edited by Animalclub; 10th Jul 2013 at 00:53.