Controversial Qantas boss Alan Joyce has spoken out about the moment he burst into tears after being forced to lay off hundreds of employees during the pandemic.
The airline has been plagued by delays, cancellations, long boarding times and baggage handling issues since international borders reopened last November.
Joyce said 30 percent of Qantas headquarters staff were laid off when the carrier was just 11 weeks away from bankruptcy.
“Friends I’ve known for 20 years, I had in my office, and I was in tears when I had to fire them, but we had to do it to survive,” he said on 2GB’s Ben Fordham live.
‘We have, and we are losing a lot of money.
Controversial Qantas boss Alan Joyce has spoken out about breaking into tears after being forced to lay off hundreds of employees during the pandemic
“I am very sorry for what has happened, but I also have a responsibility to the other 22,000 people who are still in the company and a responsibility for the national icon to survive.”
Joyce said it was the “hardest period” in Qantas’ 100-year history.
The CEO was also faced with the million-dollar stock bonuses that would be handed out to executives.
“We’re basically handing out $200 million in bonuses to all of our employees when the company turns around, all of our employees have suffered for the past two years,” he said.
The airline has been plagued by delays, cancellations, long boarding times and baggage handling issues since international borders reopened last November.
“We thought it was the right thing to do those employees. If the company turns around and delivers, then we’re now paying $10,000 to each employee.”
Joyce said he hasn’t taken a salary for six months and was the only ASX-listed CEO not to receive a bonus last year.
Amid calls to step down as Qantas boss, Joyce said he had plans to stay on at least until the end of 2023.
“Qantas is one of the few airlines here that has apologized for its performance, there are other airlines that are just as bad,” he said.
“But we try to make amends with our customers and treat them with respect, others haven’t.”
It comes after news that Qantas will raise fares by more than 20 percent and charter fewer flights after a “stunning” drop in profits.
Customers pay an additional 10 percent for domestic fares and 20 percent for international fares, with travelers paying an additional $300 for some flights.
A flight from Melbourne to Sydney would cost $250 instead of $230, while flying from Brisbane to the Harbor City could rise from $269 to $295.
Mr Joyce has rejected calls for him to resign and said the airline had apologized for the mistakes (pictured, a passenger arrives at Sydney International Airport)
Qantas has attributed the price hike to rising fuel prices and unprecedented levels of sick staff as it works to recover from recent hits to its reputation.
According to Joyce, an average of at least 320 pilots call in sick every day, in addition to a number of flight attendants, baggage handlers and ground staff.
On Thursday, Joyce announced that the airline had suffered a $1.9 billion loss in fiscal 2022 and failed to provide customers with adequate customer service.
In a press conference, the CEO acknowledged that Qantas needed to do better and said seven-day Covid isolation periods were the root cause of staff shortages.
“All this resulted in much publicized problems: long queues, delayed flights and lost bags,” he said on Thursday.
“It was incredibly hard on our people and very frustrating for our passengers.
“It just wasn’t good enough, and we apologized for that.”
In a press conference, the CEO (pictured with husband Shane Lloyd) acknowledged that Qantas needed to do better and said seven-day Covid isolation periods were at the root of staff shortages
He said the Covid-19 pandemic had cost the flagship airline more money in the past three years than it had made in the past five years.
The CEO said the numbers were “staggering” and admitted it had been a difficult year.
“That brings our total losses since the start of the pandemic to more than $7 billion and puts lost revenues to more than $25 billion,” he said.
‘Last year was a challenge for everyone. It is remarkable that we were able to manage this.’
Joyce said he was confident the airline would recover from “huge” losses by the end of this year and return to pre-Covid levels.