Qantas’ Leadership Shakeup Amidst Legal Woes
On September 6, in an unexpected move, Alan Joyce relinquished his role as CEO of Qantas Airways, two months ahead of his planned exit. The baton was swiftly passed to Vanessa Hudson, the airline’s former CFO. This sudden leadership transition came on the heels of a legal challenge by the Australian Competition and Consumer Commission (ACCC) accusing Qantas of dubious ticket sales practices during a three-month span in 2022.
Adding to the airline’s woes, the High Court of Australia, in a unanimous decision, recently upheld a federal court ruling. The judgment found Qantas guilty of violating industrial laws by unlawfully terminating 1,700 ground staff across 10 Australian airports in 2020.
The Plunge in Qantas’ Brand Health
Recent insights from YouGov BrandIndex paint a grim picture for “The Flying Kangaroo.” As news of its alleged malpractices gained traction, consumer sentiment took a significant hit.
Qantas’ Buzz score, an indicator of recent brand sentiment, was relatively stable in July. However, it took a nosedive from 7.7 on August 21, when the airline faced a class-action lawsuit over refund withholdings, to a concerning -7.2 by September 14, following the High Court’s ruling on staff terminations.
Similarly, the airline’s Impression score, reflecting overall brand perception, plummeted from 26.9 to a mere 8.3 between August 21 and September 14. The comprehensive Index score, encapsulating various facets of brand health, mirrored this decline, halving from 21.5 to 10.2 over the same period.
Virgin Australia Soars as Qantas Flounders
While Qantas grappled with its brand image, data suggests that Virgin Australia has been capitalizing on its competitor’s misfortunes. Virgin’s Index score, which was on par with Qantas in early August, began its ascent as Qantas faltered. Between the initiation of Qantas’s class-action lawsuit and its CEO’s departure, Virgin’s score rose from 25.1 to 28.8 by September 14.
During this window, Virgin also introduced innovative tools, including a baggage tracking system for a significant portion of its domestic routes and a self-service flight rebooking feature for business travelers facing disruptions.
Also read: Snowflake Unveils 2023 Modern Marketing Data Stack Report: A Deep Dive into Data-Driven Marketing Trends
Other Players in the Market
Qantas’ smaller adversary, Bonza Aviation, also witnessed a modest uptick in consumer sentiment. The budget airline’s Index score rose from 3.1 on August 21 to 4.7 by September 14, albeit still trailing Qantas by over five points.
Methodology
YouGov BrandIndex’s comprehensive data collection encompasses thousands of brands daily. Metrics like Buzz scores gauge recent brand sentiment, while Impression scores evaluate overall brand perception. The Index score offers a holistic view of brand health, averaging scores from various categories. For a deeper understanding of BrandIndex’s methodology, visit their official platform.
