Dixon will leave behind a great legacy at Qantas , but Joyce may find the going tougher
“Ladies and gentleman, please fasten your seatbelts, for the
Qantas flight QS 648 is about to make a safe landing,” (hopefully)! Hope is a powerful emotion, albeit one that Qantas passengers hardly identified with, until last week that is, thanks to the airlines hugely impressive safety record. But three mid-air dramas have been a bit too much for passengers to take. Qantas is going through some turbulence in an already weakening climate for the aviation industry. By its good fortune, the airlines’ ‘no casualty’ record is still intact. Unfortunately, on the other hand, the environment in the aviation sector doesn’t meet that benchmark by miles!
However, continuing to fly high is what Qantas Airways Ltd. aims to do with Alan Joyce as its new leadership wings, when he takes over the post of CEO, replacing current CEO Geoff Dixon. Dixon is credited with establishing the low-cost carrier Jetstar Airways, the ‘down-under’ competitor of rival carrier Virgin Blue. And in this case, it is being rumoured that it is a case of ‘The hand that rocks the cradle’ at work; as ironically enough Jetstar’s current CEO, Joyce is the one who will be taking over Dixon’s post in November after the company’s annual general meeting. Moreover some see this change as a move of ‘out with the old and in with the young’ aka generational shift, for Dixon has shown some rock solid leadership credentials in his stint at Qantas. Did he actually need to be replaced at the moment?
Dixon, 67, who has been managing Australia’s largest airline since November 1998 as Deputy CEO, until being appointed as CEO and Managing Director in March 2001, is credited by most for maintaining a safe and reliable airline. Dixon’s tenure as CEO of Qantas coincided in a period when the aviation industry has been under pressure to remain competitive, with rising fuel and insurance costs.
To cut costs, Dixon also controversially outsourced a range of business activities to off-shore areas, including in-flight and IT services during his career path at Qantas. Binit Somaia, the Sydney-based director of the Centre for Asia Pacific Aviation, shared his thoughts with B&E on Dixon’s achievements as CEO, “Under Geoff Dixon, Qantas has pursued a very disciplined but innovative approach, in fact it could be said that Qantas is one of the best managed legacy carriers in the world.”
The airline is betting on Joyce’ experience of running Jetstar to help cut costs during this fuel price crisis. Joyce, 42, has been a part of the Qantas family for over 15 years, and is already bringing with him an air of change. “A lot of airlines are not economic if they stand alone. Consolidation is a way for a lot of airlines to go on in the future,’’ he said recently in an interview for the Daily Telegraph.
The timing of such a shift will prove to be crucial for the airline. After having the best safety record, Qantas has been in the headlines consecutively for the past two weeks for three emergency landings, putting a dent on its perception. “Joyce will, as always, need to ensure that safety is a priority, but in terms of strategic outlook, the focus will be on negotiating the airline through an increasingly challenging environment...,” adds Somaia. Indeed, maintaining the world’s second oldest continuously operating airline (behind KLM) isn’t the only challenge ahead for Joyce. Flying in the not-so-friendly skies amidst climbing fuel prices and maintenance costs, in older aircrafts, and close to competition are a few things which Joyce will inherit from Dixon’s departure in November. He does need all the wishes he can get for a casualty free reign at Qantas, so that he can carry Dixon’s enviable legacy forward!
For Complete IIPM Article, Click on IIPM Article
Source : IIPM Editorial, 2008
“Ladies and gentleman, please fasten your seatbelts, for the
Qantas flight QS 648 is about to make a safe landing,” (hopefully)! Hope is a powerful emotion, albeit one that Qantas passengers hardly identified with, until last week that is, thanks to the airlines hugely impressive safety record. But three mid-air dramas have been a bit too much for passengers to take. Qantas is going through some turbulence in an already weakening climate for the aviation industry. By its good fortune, the airlines’ ‘no casualty’ record is still intact. Unfortunately, on the other hand, the environment in the aviation sector doesn’t meet that benchmark by miles!However, continuing to fly high is what Qantas Airways Ltd. aims to do with Alan Joyce as its new leadership wings, when he takes over the post of CEO, replacing current CEO Geoff Dixon. Dixon is credited with establishing the low-cost carrier Jetstar Airways, the ‘down-under’ competitor of rival carrier Virgin Blue. And in this case, it is being rumoured that it is a case of ‘The hand that rocks the cradle’ at work; as ironically enough Jetstar’s current CEO, Joyce is the one who will be taking over Dixon’s post in November after the company’s annual general meeting. Moreover some see this change as a move of ‘out with the old and in with the young’ aka generational shift, for Dixon has shown some rock solid leadership credentials in his stint at Qantas. Did he actually need to be replaced at the moment?
Dixon, 67, who has been managing Australia’s largest airline since November 1998 as Deputy CEO, until being appointed as CEO and Managing Director in March 2001, is credited by most for maintaining a safe and reliable airline. Dixon’s tenure as CEO of Qantas coincided in a period when the aviation industry has been under pressure to remain competitive, with rising fuel and insurance costs.
To cut costs, Dixon also controversially outsourced a range of business activities to off-shore areas, including in-flight and IT services during his career path at Qantas. Binit Somaia, the Sydney-based director of the Centre for Asia Pacific Aviation, shared his thoughts with B&E on Dixon’s achievements as CEO, “Under Geoff Dixon, Qantas has pursued a very disciplined but innovative approach, in fact it could be said that Qantas is one of the best managed legacy carriers in the world.”
The airline is betting on Joyce’ experience of running Jetstar to help cut costs during this fuel price crisis. Joyce, 42, has been a part of the Qantas family for over 15 years, and is already bringing with him an air of change. “A lot of airlines are not economic if they stand alone. Consolidation is a way for a lot of airlines to go on in the future,’’ he said recently in an interview for the Daily Telegraph.
The timing of such a shift will prove to be crucial for the airline. After having the best safety record, Qantas has been in the headlines consecutively for the past two weeks for three emergency landings, putting a dent on its perception. “Joyce will, as always, need to ensure that safety is a priority, but in terms of strategic outlook, the focus will be on negotiating the airline through an increasingly challenging environment...,” adds Somaia. Indeed, maintaining the world’s second oldest continuously operating airline (behind KLM) isn’t the only challenge ahead for Joyce. Flying in the not-so-friendly skies amidst climbing fuel prices and maintenance costs, in older aircrafts, and close to competition are a few things which Joyce will inherit from Dixon’s departure in November. He does need all the wishes he can get for a casualty free reign at Qantas, so that he can carry Dixon’s enviable legacy forward!
For Complete IIPM Article, Click on IIPM Article
Source : IIPM Editorial, 2008
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