Qantas CEO Alan Joyce’s apology “irrelevant” next to business traveler bonuses, brand expert says

Source: AAP Image/Dan Himbrechts

Qantas CEO Alan Joyce has rolled out a rare corporate apology to passengers stricken by flight delays, lost baggage, and lengthy customer service wait times, offering benefits and $50 flight vouchers to loyal customers as the airline battles to preserve its reputation.

Months of heightened flight demand, increased sick leave among staff, and the fallout of the airline’s decision to outsource ground crew services have culminated in significant disruptions for Qantas passengers.

Backdropped by the airline’s tumbling global ranking, Joyce on Sunday apologised to Frequent Flyer customers for Qantas’s recent difficulties.

“Over the past few months, too many of you have had flights delayed, flights cancelled and bags misplaced,” Joyce said.

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“There are good reasons why, but when it comes to what you expect from Qantas, it’s not good enough.

“On behalf of the national carrier, I want to apologise and assure you that we’re working hard to get back to our best.”

The airline is now improving its timeliness and doing a better job of baggage handling, Joyce added, claiming Qantas will better its performance as time goes on.

Qantas is now offering $50 flight vouchers to Frequent Flyer loyalty members impacted by the recent turmoil, and has pledged to extend loyalty privileges to its biggest-spending customers.

Apology tailored to business-class clientele, not everyday travelers

The fact Joyce delivered a “straight down the barrel” apology to Qantas customers was interesting, says Ben Birchall, director of brand voice at brand and design agency SouthSouthWest.

However, the apology itself was largely “irrelevant” in comparison to the benefits offered to Qantas’s business travel clientele, Birchall says, reflecting the airline’s focus on fixing relations with its big-spending customers.

“It really does feel like the apology isn’t aimed at the sort of broader population,” Birchall told SmartCompany.

“The apology is really aimed at those business travelers who pay a premium for contests and expect premium service. So it’s really, in a sense, it’s kind of dog whistling to that audience.”

A more “cynical” take on the apology would suggest Qantas is even happy to lose disgruntled holidaymakers to Jetstar or other competing airlines as it works to resolve delays and baggage handling issues, he added.

With no new benefits offered to occasional travelers, the apology appeared “calculated for it to be to be tailored towards the more valuable business traveler”.

Real-world struggles come after optimistic messaging

Attempting to appease business travelers feeds into concerns Qantas could lose its cachet as a national icon and one of the world’s most-respected airlines.

At the same time, the airline is also battling to preserve its reputation among blue-collar Australia.

Reflecting on Qantas’ decision to outsource around 2000 ground crew to third-party contractors in 2020, Transport Workers Union leader Michael Kaine today said the leadership team of Alan Joyce has “trashed” the airline’s reputation.

“For a century, Qantas customers have paid a premium, and rightly expected premium service,” Kaine told the ABC.

“Prior to the Joyce management team, that’s what the loyal workforce at Qantas made sure customers received.”

Qantas has filed an appeal in the High Court after the Federal Court found the outsourcing was unlawful.

Now, Qantas has significant work ahead to live up to the promise of 2021 advertisements which promised hassle-free travel to everyday Australians — and earned the praise of Birchall himself.

“They did set the bar very high with optimistic messaging,” he said.

“I think it was maybe the tonic that that a lot of Australians needed at the time that that ad went out.

“But the danger is sometimes you have to live up to it.”