Life At The Qantas Trough
The 2003 Qantas Annual report has just arrived and has some illuminating revelations for those watching the emergence of Low Cost Airlines within the Qantas group. For example, the Chief Executive of Australian Airlines had a whopping base salary increase of around 25%. His base for the year ended 30th June 2002 was $460,000. Twelve months later it had jumped to $577,500. Not bad, eh?
Furthermore, he appears to have been the only Executive to have scored a bonus. According to the report he collected $100,000 (yes, $100,000) as a "one-off, non recurring milestone payment during the year for the successful launch of Australian Airlines in October 2002." The report fails to indicate whether those lower in the Australian food-chain were paid a similar (or even lesser) one-off bonus but either way, it shows rather dramatically who is bearing the brunt of 'low cost' when it comes to Low Cost Airlines. The principle clearly fails to apply to everyone.
Just breat-taking, especially at a time when GD is preaching wage restraint and belt tightening all over the place: his base salary increased by more than 12% from $1.426m to $1.6m. Apart from the pigs at the top table, does anyone know of any salary increases enjoyed by others in the Qantas Group of the magnitude enjoyed by these two people? How can Dixon and his underlings preach restraint and so on when largesse at the top abounds? It is truly unconscionable. No wonder the unions and the worforce generally are concerned about the mixed messages they receive. And these people at the top wonder, often aloud, why no one believes them!