Qantas, Australia's largest airline, has announced that Vanessa Hudson, the current Chief Financial Officer (CFO), will succeed Alan Joyce as CEO from November 2023. Joyce has led the airline for 15 years and is widely credited with steering the carrier through several challenges including the global financial crisis, intense competitive pressures and the COVID-19 pandemic.
The Qantas board reportedly assessed a shortlist of about 40 candidates, both internal and external, and considered Vanessa Hudson and Qantas Loyalty boss Olivia Wirth as the two strongest candidates for the position. According to the Chairman Richard Goyder, both were appointable to the role, but the board ultimately felt that Hudson was the right person to lead Qantas.
Hudson has been with Qantas since 1994 and has served as CFO since 2019, where she has been instrumental in guiding the airline’s balance sheet through the pandemic and delivering a record interim profit in the six months ended December 31. Her appointment as CEO marks a new chapter for the airline as it navigates the post-pandemic world and embarks on ambitious fleet renewal programs.
Qantas has placed orders for dozens of new Airbus jets as part of Project Winton, which aims to begin refreshing its aging fleet, and is also undertaking Project Sunrise, which is the company’s plan to run record-breaking non-stop flights from Australia’s east coast to Europe and New York. According to Jarden analyst Jakob Cakarnis, the total capital expenditure (capex) bill between financial year 2024 and 2026 is $10.1 billion based on the company’s guidance, compared to $5.2 billion over the three years before COVID-19.
As a result, Hudson will be tasked with managing an incoming wave of capital expenditure to refresh the Qantas fleet. Analysts believe that Hudson has the requisite knowledge of the balance sheet to manage the increased capex requirements, given that she has led the fleet selection process for the renewal of the domestic jet aircraft fleet.
Hudson's appointment as CEO comes at a time when Qantas has faced repeated customer complaints since travel restrictions eased, and the airline has fallen from Australia’s ninth most trusted brand to 40th in surveys conducted by Roy Morgan in February. However, Hudson is optimistic about Qantas' future and has expressed her focus on delivering for customers, employees, shareholders, and the communities the airline serves.
According to RBC analyst Owen Birrell, Hudson is the logical choice to execute on the company's strategy, given her involvement in developing the group's strategy for the last five years. Hudson has also been Qantas' Chief Customer Officer before becoming CFO, which highlights her focus on striking the right balance between customers, employees, and shareholders.
Hudson's appointment marks a significant milestone for Qantas as it transitions to a new era under new leadership. While it remains to be seen how Hudson will lead the airline, she is poised to take on the challenges ahead and ensure that Qantas remains a dominant force in the aviation industry.
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