Qantas Airways has slashed the pay of its chief govt by greater than 80 per cent and bought tickets for a “flight to nowhere” as a part of efforts to outlive the coronavirus pandemic.
The Australian airline mentioned Alan Joyce, one of many world’s highest paid airline executives in recent times, wouldn’t take any wage within the remaining three months of the 2020 monetary 12 months. He has deferred a long-term incentive cost of virtually 350,000 shares till subsequent 12 months, pending board approval. Total, Mr Joyce’s pay plunged 83 per cent to A$1.7m ($1.2m) within the 12 months to June.
Whole govt remuneration at Qantas fell to A$6.9m within the 2020 monetary 12 months, down from A$22.4m within the prior 12 months, in line with the corporate’s annual report, revealed on Friday.
The pay cuts come as Qantas has carried out sweeping measures to remain afloat because the Covid-19 disaster has introduced air journey to a halt. They embody shedding 6,000 workers, furloughing an extra 20,000 and grounding its worldwide fleet. Australia has closed its worldwide borders, restricted inner air journey and launched strict quarantine procedures.
“Administration and the board confirmed necessary management by taking no wage for a number of months after which a lowered wage for months after that,” mentioned Richard Goyder, chairman of Qantas. “That is clearly not the identical as these stood down or dealing with redundancy, however it comes at a time when calls for on administration are larger than ever.”
Qantas has turned to different avenues to generate income with a lot of its flight grounded. The airline mentioned on Friday that tickets for a seven-hour scenic tour of Australia — which takes in landmarks together with Uluru, Byron Bay and the Nice Barrier Reef — bought out inside 10 minutes. Tickets for the flight to nowhere price between A$787 and A$3,787.
Final month, the airline started promoting luxury pyjamas often supplied to enterprise class passengers for A$25 a pair.
Commerce unions mentioned the truth that Qantas executives have been nonetheless being given multimillion-dollar funds was “sickening” and criticised Mr Joyce for deferring, fairly than sacrificing, his long-term bonus.
“It exhibits simply how conceited and out of contact this administration is after they imagine that stalling their million-dollar salaries and share choices for just a few months will make it appear like they’re sharing the burden,” mentioned Michael Kaine, nationwide secretary of the Transport Employees’ Union.
Traders have begun to query govt pay awards within the struggling airline sector. Final week, a fifth of voting shareholders voted towards the remuneration report of Worldwide Airways Group, proprietor of British Airways, which included a bonus of £883,000 for departing chief govt Willie Walsh for his work in 2019, as a part of a complete package deal price just below £3.2m.
Mr Joyce was paid a bumper A$24.5m in 2017, primarily resulting from a pointy soar in Qantas’s share worth following a restructuring on the airline. Oscar Munoz, chief govt of United Airways, obtained $18.7m in the identical 12 months, whereas Doug Parker, head of American Airways, obtained $11.1m.