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After a short pitch to directors from Mr Mullen, Belinda Hutchinson asks if there are any questions before his election is put to a vote of shareholders.
There are none in the room, but there is one online from shareholder activist Stephen Mayne who asks for the board’s opinion of annual director elections.
(The context here is that Mr Mullen is also the chair of Treasury Wine Estates, which follows this procedure.)
Mr Mullen replies that it’s not the norm in Australia and was something he’s inherited at TWE, and that he thought the focus on Qantas right now should be on steadying itself after a turbulent few years.
Shareholders have voted overwhelmingly for Mr Mullen’s appointment to the board, with over 88% in favour, meaning he is officially appointed to the board.
Ms Hutchinson congratulates him, and there is a small round of applause.
Around 40 minutes later, and we’re onto item two of the Qantas AGM agenda — the election (or re-election) of directors.
First up: board chair and meeting MC John Mullen.
He’s handed over to fellow board member Belinda Hutchinson to run the meeting for this portion, as he is unable to oversee it while seeking election to the board.
It’s me, hi — Steph Chalmers just dropping in with a quick ASX update as we get further into the Friday session.
If you’re just here for Qantas, scroll on…
The ASX 200 is having a solid session so far. Here’s how it’s tracking:
Technology is still the best performing sector, led by WiseTech.
Biggest % gains:
Biggest % falls:
An online question has been asked regarding Joe Aston, a former columnist with the Australian Financial Review.
Aston regularly wrote pieces for the AFR’s Rear Window column that were highly critical of Qantas.
The airline made headlines when it retaliated against Aston’s columns by removing copies of the AFR from its Qantas lounges around the country.
The timing of the question comes as Aston prepares to release a book about Qantas titled “The Chairman’s Lounge”, with excerpts to be published across the Nine Newspapers this weekend
The question asks whether Qantas was “too combative” in its dealing with Aston in particular, and what the airline’s strategy for his upcoming book release.
Qantas chair John Mullen says he personally has a good relationship with Aston, and described him as a great storyteller.
He adds that the airline is committed to having more meaningful engagements with media outlets as part of its effort to restore its brand.
Mr Mullen also notes that Qantas does not know what is in Aston’s upcoming book.
We have a question being asked by shareholder Chris Maxworthy who is physically in the room, who had his microphone switched off at the direction of Richard Goyder at last year’s AGM.
He asks for reassurance that Qantas’s board has atoned for its sins, and its tarnished reputation under the leadership of former CEO Alan Joyce.
“I feel the ghost of Alan Joyce in the room,” Mr Maxworthy says.
He refers to some directors who are still on the board who were there during Mr Joyce’s tenure — including Todd Sampson.
Mr Maxworthy also took umbrage with Mr Joyce’s remuneration.
“Alan Joyce had two months working for the company in the last financial year. I would suggest that of that $3.4 million, of which $3 million are long-term incentives, they should be rescinded,” he says.
“Alan Joyce deserves base salary in my view.”
Mr Mullen replies that the he understands Mr Maxworthy’s views, and stresses that the board is committed to renewal and acknowledges the mistakes of the past.
He also notes that Mr Joyce has had around $9 million of his salary “clawed back”, and that it was one of the largest, if not the largest, in Australian corporate history.
John Mullen has read out a question around the airline’s “corporate posturing” on “divisive social issues”, and whether it would consult shareholders beforehand.
Qantas faced some scrutiny for its support of the Yes campaign in the last year’s Voice to Parliament referendum, and similarly for supporting the Yes vote in the Same Sex Marriage plebiscite.
Mr Mullen said that while the company has made some changes and there are some new provisions, there won’t be a shareholder vote before the company endorses particular matters.
OK, we’re now heading into the official meeting agenda.
John Mullen is outlining the order of business, how shareholders can ask a question, and how shareholders can vote.
You can follow the items of business in Qantas’ notice of meeting document here. (It’s a link to the document shared on the ASX.)
Onto the first items of business — considering Qantas’ financial report, directors’ report, and the independent auditor’s report of Qantas for the 2024 financial year.
Qantas chair John Mullen is back at the lectern, and has addressed a few common questions that have come through before official proceedings get underway.
He addressed the lack of dividends paid to shareholders, and said the company is on track to pay them in the first half of next year.
He also gives an assessment of Qatar Airways’ proposed stake in Virgin Australia, and what Qantas’ view is.
Mr Mullen says Qantas is not opposed to it, and that it’s a matter for the authorities to assess.
He also highlights that the aviation industry in Australia has changed, pointing to the collapse of Bonza and Rex Airlines‘ jet business, and the rise of low-cost carriers like Jetstar.
Ms Hudson ends her speech by repeating Mr Mullen’s sentiments, after outlining the ongoing investment in the long-term for the airline.
“The resilience of the business and its strong foundations underpin these investments, which will in turn help deliver improved shareholder returns over the long term,” she says.
“But we must also make sure we get the basics right along the way.
“Our performance over the past 12 months shows we are tracking in the right direction.
“We know that we need to consistently deliver in the moments that matter … to our customers, to our people, and to Australians more broadly.
“It is why we are committed to continually building a stronger and more sustainable business, one that gets the balance right for customers, employees and shareholders.”
Ms Hudson continues by calling out the importance of Qantas employees — a timely remark given the strikes around the country today, including outside its AGM at the Crowne Plaza in Hobart.
“I want to thank our people for their dedication and commitment during the year. I hear stories of their can-do attitude every day,” she says.
“Today we have also committed to providing an additional $1,000 payment to our non-executive employees to say thank you.
“Right across the business, they do a fantastic job caring for our customers, often in challenging circumstances.
“Their energy and innovative thinking will be essential to the ongoing work to restore our reputation.”
Again, Ms Hudson refers to her remarks last year and re-iterates her commitment to rebuilding relationships with Qantas staff and their union representatives.
“We have made progress on this front, but we recognise rebuilding trust will take time.
“I also recognise that we will not always agree and will not be able to meet some people’s expectations every time.
“But we are looking for solutions that deliver improvements in pay and conditions for our people, while ensuring we can continue to invest and grow for the long term.”
It’s Vanessa Hudson’s second AGM as Qantas CEO, and she began her speech by referencing her remarks from last year.
“I said I was determined to make Qantas a company that you could be proud of,” she told shareholders.
“We have started to make some progress in the past 12 months, but there is more that can be done.
“We increased our investment in the things that matter most to our customers. We have seen that reflected in our improved operational performance across Qantas and Jetstar.
“We have improved our inflight catering and overhauled the app, putting more information and more control in the hands of customers.
“We empowered our people with the right tools and policies to better support customers in the moment when things don’t go to plan, and we are continuing to tackle the areas that customers tell us are frustrating, including making flight credits more flexible.
“I acknowledge we do not always get it right but the feedback from customers and what we hear when travelling suggests we have turned the corner.”
Qantas chair John Mullen ended his speech by paying tribute to its previous CEO and chair — Alan Joyce and Richard Goyder.
“While it is understandable that attention has focused on the unfortunate events of the last year or so, I think it appropriate that I thank both Richard Goyder and Alan Joyce for their tenure and great contributions to the airline,” he says.
“Let us not forget that Alan was CEO for 15 years and in that time delivered many years of exceptional results to the benefit of shareholders and other stakeholders.
“Richard and Alan steered Qantas through the dark and difficult days of COVID during which, without their leadership, Qantas might well have not survived, and we might not all be here today.”
CEO Vanessa Hudson is now addressing shareholders.
Mr Mullen’s speech turns to focusing on the airline’s resolute focus to restore its reputation, and that its board is determined to achieve that.
“As a board we are deeply committed to ensuring that Qantas resumes its place as again being seen as one of the truly great airlines of the world, that we are again recognised as a leader in customer experience, and that we rebuild trust and pride with our outstanding employees around the world.
“But what sets Qantas apart is that it is the national airline of Australia and in some way every Australian owns a little piece of the company, whether actually a shareholder or not.
“Qantas is part of Australia’s identity, culture and history, and everyone that works at Qantas has an obligation to make all Australians proud of their national airline, whether they are our customers or not.
“I can assure you that everyone from the Board down takes this responsibility very seriously.
“Will we get everything right going forward? No, we won’t. Will we make mistakes in the future? Inevitably, we will.
“But you have our absolute commitment to learn from the past, correct mistakes quickly and ethically if they occur, and ensure that we earn the trust and respect of all of our stakeholders from government to customers, to employees, and to everyday Australians.”
Mr Mullen continues by addressing the elephant in the room — the precarious events that the airline endured 12 months ago.
“There is no pretending that last year was anything other than a very difficult year for Qantas,” he says.
“I will not go through the various challenges that the company experienced as they have been widely reported in the press and elsewhere.
“But what I can tell you with conviction is that firstly Qantas and Jetstar have always been and remain excellent airlines.
“The Group’s reputation for safety and operational excellence has remained first class throughout even the most difficult of times.
“And secondly, I can assure you that the issues that caused the difficulties and reputational damage last year have been and are being comprehensively addressed.
“An important part of strengthening the foundations was understanding what went wrong.”
He goes on to address the independent board governance review, which Qantas committed to making the 32 key changes as recommended.
“While in no way shying away from the past, however it is time now to put this period behind us and to move on, to look forward to the future and to focus on the exciting opportunities that lie ahead for Qantas.”
Qantas chair John Mullen is beginning by introducing the airline’s board of directors.
It is Mr Mullen’s first AGM as Qantas chair, and he begins by outlining that he will deliver some remarks, followed by CEO Vanessa Hudson before it gets underway to vote on its resolutions.
“It is an honour to speak to you today for the first time as the chair of Qantas,” he says.
“While I am new to the company, I am not new to the industry. I have been around aviation most of my life and I like to think that it is in my blood.”
Governance expert Helen Bird said it would be interesting to see how a new chief executive can govern effectively at WiseTech Global, when Richard White retains a significant amount of control over the company.
“Whoever is appointed CEO inherits a poisoned chalice,” she told the ABC.
Ms Bird also argued this week’s drop WiseTech’s share price was not a reaction to the allegations White is facing but rather “the fear [White] was going to leave”.
That view seems to have been validated, as WiseTech shares leapt this morning on the news he is standing down but will remain on as a consultant on a 10-year term.
“People aren’t sure what this consulting arrangement is but I’m wondering about the inquiries they profess to be undertaking and how much they disclose to the marketplace,” Ms Bird said.
White is the founder of WiseTech — a company that began in the 90s. He’s seen by many investors as key to the company’s success.
Ms Bird said the board also needed to be questioned about its governance.
“Questions about how the board allowed these internal issues to fester remain. Could stronger oversight have prevented the allegations that have rocked the company? There’s speculation that the board has been too enthralled by the charismatic CEO’s past success and failed to act sooner.”
Shareholders might take comfort in the CEO’s ongoing role with the company, but the situation is far from resolved. WiseTech faces the challenge of proving its leadership can steer the ship through these troubled waters.
Even if you’re not a shareholder, you’re in luck — the meeting will be available to publicly stream.
If you follow this link to Qantas’s AGM page, you’ll see a link to the online meeting platform.
You can’t join just yet though (believe me, I’ve tried!), so sit tight for another 10 minutes or so, until the clock strikes 11am AEDT.
But if you can’t tune in, I’ll be following along and bringing you all the updates right here on the blog.
Consider this your final chance to get your coffee and snacks order, then please find your seat and fasten your seatbelts before the in-flight entertainment begins.
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Qantas engineers have held a protest outside the Crowne Plaza in Hobart, where the airline’s Annual General Meeting will soon get underway.
Union members representing hundreds of engineers are calling on Qantas to increase salaries by 25% over the next three years.
They’ve delivered their message to attendees at the company’s AGM in Hobart, chanting “no more delays, it’s time for fair pay”.
It comes as union members stop work for four hours this morning and four hours later today, and say they’ll escalate their industrial action if their demands aren’t met.
Qantas says it has contingencies in place to avoid any disruptions for customers.
Good news if you’re flying in (or out) of Adelaide today — the baggage handling system is now back up and running.
The Adelaide Airport says there may still be some residual delays, and says travellers should double check with their airline for the latest flight information.
