This was published 6 months ago
Qantas appoints John Mullen as chair to replace Richard Goyder
Qantas has appointed John Mullen as its new chairman to succeed Richard Goyder from July as the airline overhauls its board in an effort to restore its bruised reputation.
Mullen, who also chairs the boards of pallet supplier Brambles, Penfolds maker Treasury Wine Estates, and helmed the Telstra board until late last year, flagged he may step down from his other commitments in light of the demands of Qantas.
“I am conscious of the time commitment that this prestigious role requires and will be adjusting my other professional obligations so I can be fully focused on this exciting challenge,” he said in a statement on Wednesday.
John Mullen will chair Qantas from July.Credit: Alex Ellinghausen
Goyder was heavily criticised towards the end of his seven-year tenure at Qantas for having too many other commitments. The former Wesfarmers boss is also chair of the Australian Football League and energy giant Woodside.
Goyder announced he would step down from the chair and commission an independent review into the board’s governance at the end of last year following allegations its directors had neglected their duties. Qantas said the results of that review are due by the middle of this year.
Investors baulked when Goyder approved former chief executive Alan Joyce to sell $17 million of his own shares after the airline business had been notified the consumer watchdog was investigating allegations it sold tickets on thousands of flights that had already been cancelled. The Australian Competition and Consumer Commission has since launched legal action over the allegations.
Goyder said on Wednesday that Mullen’s appointment marked a new chapter for the embattled airline, which has suffered from a public fall from grace since a series of scandals in the second half of last year.
“Careful management of the board renewal progress has been an important part of guiding Qantas through this intense period, and the selection of a new chair reflects this new chapter,” Goyder said.
John Ayoub, a portfolio manager at major Qantas investor Wilson Asset Management, said Mullen would be a “steady hand” and was unsurprised the board had elected him.
Qantas has also appointed Nora Scheinkestel – already a director at Westpac, Brambles and Origin Energy – to the board to lead its remuneration committee. Mullen and Scheinkestel would replace outgoing board members Jaqueline Hey and Maxine Brenner, who are due to retire from their roles on Thursday.
“John brings a wealth of experience as a director and chairman of similarly large and complex companies to Qantas, as well as great depth from his long executive career in the transport sector both here and overseas,” Goyder said.
“Nora is one of the most seasoned company directors in the country, with more than 25 years’ experience on numerous boards across leading utilities, finance and logistics firms, as well as her deep knowledge of regulatory matters,” he continued.
Australian International Pilots Association boss Tony Lucas called for Goyder to resign last year. He said on Wednesday Mullen had a “large challenge” ahead but hoped he would work with new chief Vanessa Hudson to “bring about the cultural change she promised”.
Hudson will deliver the group’s interim results on Thursday, her first set of financial results since taking over from Alan Joyce after he quit ahead of schedule in September.
ASX-listed carrier Air New Zealand issued a profit downgrade on Monday, which unnerved investors who fear the bumper profit period for airline stocks post-COVID-19 may be coming to a close.
Air New Zealand will also release its half-yearly results on Thursday but warned it now expects its earnings for the first six months to December 31 to be at the lower end of its $180 million to $230 million forecast as corporate and government demand for flights remains soft. It is also struggling with a short-term cost blowout due to aircraft leasing following Airbus’ Pratt & Whitney engine issues.
Corporate Travel Management – another ASX-listed tourism stock – also downgraded its full-year earnings expectations by $40 million on Wednesday and blamed the weaker trading market after unveiling worse-than-anticipated half-year results.
The travel booking business recorded $362 million in revenue over the six months to December and earnings before interest, tax, depreciation and amortisation of $101 million, which was below what analysts expected.
Corporate Travel Management’s share price plummeted by almost 20 per cent on Wednesday mid-morning trade to $16.09
Qantas has not issued a trading update since September, which means its results are expected to be in line with its prior forecast of about $920 million.
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