As Qantas’ reputation unravels, this is how it can restore trust in its brand

For many Australians, Qantas is a brand that they have grown up with and is synonymous with many “firsts” – first time on a plane, first time travelling alone, first time leaving home and returning.

From its beginnings as a national carrier turned private company in the early 1990s, Qantas played to this idea of home and belonging – an idea that it was able to nurture easily as a former publicly owned airline – and a familiar and safe pair of hands.

As we age, the relationship we have to a brand becomes the very reason we choose it over others. It’s a deep, emotional connection that is literally worth billions.

Qantas had that relationship with Australians. It was a relationship it had built over decades by aligning itself with Australia and its cultural iconography. Shots of Sydney Harbour and Uluru dominated its advertising and reinforced its position in the national conscience. It even sponsored the Wallabies at a time when John Howard would go for walks donning the team shirt.

Yet Qantas has let its billion-dollar relationship with Australians wane.

There is no question that most of the loyalty Qantas built over decades has nearly disappeared in the last three years. In fact much of it has been lost in the last week. The Australian Competition and Consumer Commission’s announcement that it was taking the airline to court over allegations it charged people for flights that had been cancelled was seen by many as a last straw. The airline itself acknowledged the damage to its brand. CEO Alan Joyce has now stepped down two months ahead of planned, but not before claiming a $10m share bonus.

For a company to build a billion-dollar brand, the entire customer offering needs to be on song. It’s not only big bonuses that undermine this. Lost and damaged bags, grubby seats and trays, cancelled flights, long security lines and staff working under poor conditions will all detract from brand equity and value.

Qantas has benefitted from its close relationship with governments. Its control over the domestic market and its dominance over some of the most profitable international routes such as Sydney to London, have been protected by both sides of politics. Perhaps this was helped by its infamous Chairman’s Lounge membership – given out to politicians and their family members.

Where to from here? Brands have been in worse positions than Qantas and made strong comebacks. Think early 90s Apple.

The new CEO, Vanessa Hudson, will need to focus on three key areas to rebuild the airline’s reputation.

Qantas CEO Vanessa Hudson. Photograph: Bianca de Marchi/AAP

The first is customer experience. Both onground and inflight experiences need work, and while that has started with the critical business market through business lounge expansions and redesigns, there is a clear need to improve on all aspects of the offering. It starts by revamping planes, minimising lost bags and lines in terminals, and increasing reliability.

Second is fixing the culture. Word of mouth about Qantas staff going above and beyond once upon a time added a lot of equity to the brand but that has stopped. Culture starts from top, so it’s time for a new chair.

Finally, relationships with stakeholders need to be rebuilt. The work here will incorporate the above points, but also have two other areas of focus: government relationships and relationships with shareholders and equity partners.

There needs to be far more transparency in many areas of dealing with government, not attempts at delaying competitors or buying time to rebuild balance sheets to pull off the above. As an example, turning up to parliamentary committee inquiries is a must, not an option.

Getting governments onside will help with the corporate stakeholders rebuild – necessary to get the finance required to compete with the big players now eyeing off Australia.

Is this possible? Absolutely. And not just that, it’s necessary if Qantas wants us to still think of them when we call Australia home.