New Qantas chair John Mullen says board, executive focus is on not ‘repeating the mistakes of the past’

New Qantas chair John Mullen has assured shareholders board and management are addressing issues that have damaged the airline’s reputation.

While not going into detail of its legal and operational battles, Mr Mullen told the airline’s annual meeting in Hobart on Friday that it was committed to changes recommended in a governance review.

He said the review, instigated by his predecessor Richard Goyder, had “been crucial to understanding how Qantas can improve and avoid repeating the mistakes of the past”.

“An important part of strengthening the foundations was understanding what went wrong,” he said. “There were a lot of mistakes, serious mistakes. That is fully acknowledged.

“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 … and that we rebuild trust and pride with our outstanding employees around the world.”

Mr Mullen made the comments four days after the Federal Court published a judgment that could result in Qantas paying upwards of $100 million to ground crew unlawfully sacked four years ago when the carrier outsourced baggage handling and cleaning work under the cover of COVID-19.

With Federal judge Michael Lee having been particularly scathing on Monday of Qantas’ approach to litigation, Mr Mullen joined Qantas chief executive Vanessa Hudson in promising to improve the way it deals with the claims being driven by the Transport Workers’ Union.

Mr Mullen told shareholders the airline had sought the TWU co-operation to finalise compensation for the 1700 unlawfully sacked workers “as soon as possible so we can put it behind us — for them and the company”.

The transport industry and boardroom veteran took over as chair from Mr Goyder in April, earlier than planned.

Despite legal and regulatory battles, Qantas remains upbeat about its financial position and its attempts to modernise its aging fleet.

In an update provided ahead of the annual meeting, it stuck by guidance that it would enjoy 10 per cent growth in its self-styled underlying earnings before interest and tax measure.

But it warned its profitability would suffer “immediate impacts” if tensions in the Middle East were to “escalate or de-escalate”. And its international unit revenue is falling this half as competitors return to the market.

Referring to the market update, Ms Hudson told shareholders the group continued to perform in line with expectations, with both Qantas and Jetstar enjoying stable demand.

When asked by a shareholder about Doha-based Qatar Airways’ planned equity and aircraft supply deal with Virgin Australia, Ms Hudson pointed to Qantas purchasing new long-range Airbus and Boeing jets and its planned $4 billion investment in Perth.

“We will have Airbus A350-1000s that will be able to fly over the Middle East — connecting London to Sydney directly,” Ms Hudson said.

She said the A350s and new Boeing 787 aircraft would allow more targeted international travel, particularly using “what will be a next generation hub for us in Perth connecting more points in Europe”.

“We’re actually feeling really excited about what’s coming — and in a great position to compete on that stage,” he said.