The Qantas Group has today announced two changes to its Board, as the national carrier continues to focus on renewal.

Former American Airlines CEO and Chairman, Doug Parker, will join the Qantas Board, bringing more than 35 years of aviation experience gained in one of the world’s most dynamic aviation markets.

In November, long-serving Qantas Director Michael L’Estrange AO will retire from the Board at the expiry of his current term, having made a substantial contribution over more than seven years.

Announcing the changes, Qantas Chairman Richard Goyder said the changes would help maintain the depth and breadth of experience on the Board, as the Group entered the next phase in its history.

“There are few people with as much experience running airlines as Doug. He’s spent more than two decades as an airline CEO in North America, including eight years heading up the world’s largest airline. The knowledge and perspective he’ll bring to the Board will be a huge asset as we grow in the years ahead,” said Mr Goyder.

While Mr Parker was CEO of American Airlines, its relationship with Qantas expanded significantly as the two carriers formed a joint business to serve passengers better.

But as our industry has rapidly evolved and pay increases at other airlines have accelerated, some of our colleagues have fallen behind their peers at other airlines in base pay rates. And, unless their current contracts are modified, they'll remain far behind for more than two years. Two groups specifically fall into this category today: Our pilots and flight attendants both ratified new five-year contracts in late 2014/early 2015, well in advance of some significant pay increases at our two largest competitors. Today our pilot hourly pay rates are approximately 8 percent lower than the industry’s highest rates, and our flight attendants’ hourly pay rates are approximately 4 percent lower. Absent any action, these gaps would remain at similar levels until those contracts become amendable in December 2019 for flight attendants and January 2020 for pilots.This doesn’t feel right for the new American, and it doesn’t feel consistent with our commitment. As one of our pilots said after a recent town hall, “We all understood that we would be leapfrogged by other carriers mid-contract, but no one expected this. It is just too much for too long.”

We agree. While the commitment was met when the contract was signed, we never anticipated this large of a gap for this long a period, and we don’t like that it exists, contract or not. Therefore we intend to work with the unions to adjust the hourly base pay rates of all American pilots and flight attendants to levels that are equal to the highest rates currently in place at either Delta or United.