Qantas to spend big on restoring reputation

afr.com:

Qantas chief executive Vanessa Hudson says the airline will spend hundreds of millions of dollars shoring up its reputation with customers after months of acrimony over poor performance and high airfares, but acknowledged the extra spending will come at a cost to the company’s profits.

Bringing call centres back to Australia, opening up more frequent flyer seats and making it easier to staff at airports to resolve issues quickly are all options being considered by Qantas as it urgently works to reverse the brand damage fuelled by aggrieved customers and a competition regulator inquiry into the sale of tickets on flights that had already been cancelled.

Qantas chief executive Vanessa Hudson has apologised to customers for the carrier’s performance. Edwina Pickles

While Qantas has already seta side $150 million for investment in customer service, Ms Hudson said investors were “very supportive of the focus that I’ve got now on regaining trust and investing in the customer”.

“We want to get back to the national carrier that Australians can be proud of, that’s known for going above and beyond. We understand we need to earn your trust back. Not with what we say, but what we do and how we behave,” Ms Hudson said in a separate message to customers.

Asked by reporters if the airline had struck the appropriate balance between customers, staff and investors over the past two years, Ms Hudson acknowledged Qantas’ service has fallen short. “I think it’s important to recognise that we have not delivered to our customers’ expectations and I think that that is the context of what is in my apology today,” she said.

The apology came after a long period of turbulence for the company. Ms Hudson’s predecessor, Alan Joyce, left several months