The Qantas flame-out is a symptom of something much more serious

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Qantas may well be an extreme example of the greed and hubris that is endemic in the corporate world, but it is far from alone, writes business editor Ian Verrender.

The sudden and savage outburst of community disdain for Qantas and its senior executives may have taken the suddenly departed Alan Joyce by surprise. But it was a long time coming.

Qantas may well be an extreme example of the greed and hubris that is endemic in the corporate world, but it is far from alone.The mistake Qantas made, from a tactical perspective, was to attempt a heist on its customers, to take cash for services it knew it would not deliver and then construct a refund process so convoluted and complex that few had any chance of making a successful claim.

Victoria, which introduced legislation in 2021 to outlaw the practice, launched its first case in November last year against a Macedon restaurant owner. Smaller fish to fry, as they say.Not one to be left out, Qantas too has been involved in the underpayment scam. In one fell swoop, he alienated his customers, his staff and shareholders, who had to bear the brunt of the costs.

Each ended up a costly failure. After announcing a $2.8 billion loss, the company was forced to sack thousands of workers, but pitched the strategy as a "Transformation Program".In the following years, each time the airline lifted earnings, the then-CEO proudly took the credit, boasting about the effectiveness of his program. Profit downturns were always blamed on external factors such as higher fuel prices.

Politicians, of course, are subject to the Westminster system of parliamentary responsibility, which dictates that you assume the blame for anything that goes wrong, whether you are at fault or not. Hamas warns it will kill hostages every time Israel strikes as Netanyahu says offensive has 'only started'

 

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