Faced with falling revenues, despite monopoly or duopoly rights on most long-haul routes, the previous CEO, Geoff Dixon, sought to bully staff, shareholders and the travelling public into accepting a deal that would have seen a leveraged buyout of the airline. A buyout that would have seen the airline go offshore to Shanghai or Beijing.
The deal was a product of the over-heated financial markets, pre-GFC. It was proposed at the height of the private equity boom. Some saw the deal as smoke and mirrors, but clearly not Dixon and the board of Qantas, many of whom are still serving.
The proposed arrangement collapsed, allegedly because a US-based hedge fund manager failed to submit his acceptance in time. Analysts claim that had the deal gone ahead Qantas would have collapsed in 2009 under the weight of debt and a collapsing cash flow.
Joyce could talk the leg off an iron pot. The blarney flows without the apparent interruption or check of intellect. Joyce gives off an air of desperation; the need to create the impression of future success. Is this being done so that he can apply for other corporate opportunities?
Retired General Cosgrove is on the board. Surely he appreciates the need to look after the troops, keep them fully informed and maintain morale if the airline is to deliver the standard of service expected. After all it has been the staff of Qantas that has maintained the brand and the faith of the travelling Australian public in the airline.
