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Then British Airways chief Sir And for Mr Joyce it was not Mr Joyce’s first acid test
Rod Eddington sold off GO in just a pay issue. The airline’s came in October 2011, when
2002 because he said that the productivity was lagging. he grounded the airline in a
British Airways staff thought Overarching these com- massive face off with three
they did not have to make any petitive cost trends was the unions representing ground
changes while GO was flying. relentless decline in airfares. handlers, engineers and pilots.
When Mr Joyce was anointed In 1988 when the famous The Australian government
successor to retiring Geoff film Rain Man aired with the stepped in and stopped the
Dixon, Qantas still carried con- “Qantas never crashes” line, action of all parties after two
siderable legacy baggage in 75% of passengers picked days, and early the year after,
labour contracts and product, their airline by safety but 30 Qantas won its case.
although its fleet was to be years later when Mr Joyce The next test came with the
boosted by an order for up to was in the captain’s seat it was 787s for Qantas and Mr Joyce
65 787s for the group. just 25%. was able to get the pilots
Pricing pressure was rising to agree to work a greater
with the emergence of more number of hours on the
aircraft.
Chinese giants, as well as the “ COVID Devastation
low-cost airlines such as
AirAsia X, the spectacular
growth of the Middle East and
bankruptcy and then restruc- Qantas could no The chaos that was wreaked
turing of its US competitors. longer bank on its upon aviation was unprec-
In the ten years to 2014, US safety record to edented and is largely
pilots suffered a 40% pay cut keep yields high, misunderstood outside the
as airlines restructured after industry.
filing for Chapter 11 bank- to pay its salary According to IATA 86 airlines
ruptcy protection. bills and support went into bankruptcy or admin-
Adding to the challenges, istration, 46 million people in
Asian-based carriers have uncompetitive the airline and tourism indus-
lower labour costs, some work practices.” tries lost their jobs and airlines
as much as 1/7th those of lost A$300 billion.
Qantas. Over 14,000 mainly widebody
Alan Joyce results 2022
ASIAN AIRLINES & AEROSPACE OCTOBER - DECEMBER 2023 | 7
