Thrilling moments are far memories for both Al Baker and Alan Joyce, enjoying good times in the afore-posted picture. The removal of the two executives has been a shock for some, and a relief for others, let’s analyse the path that led to their exit from the board of executives.
Akbar Al Baker
Akbar Al Baker has been an icon for Qatar Airways, having become the CEO of the airline three years after its foundation (in 1994) and having led the carrier through dramatic growth worldwide, positioning the company among the most recognisable airline brands in the industry. In 2023, Qatar Airways operates a fleet of roughly 250 aircraft flying to over 160 destinations in five continents.
Nevertheless, Al Baker has been caught in the spotlight on several occasions, due to his controversial statements.
Al Baker, 2017
By the way, the average age of my cabin crew is only 26 years, so there is no need for you to travel on these crap American carriers. You know you are always being served by grandmothers on American carriers.
Al Baker, 2018
Of course it has to be led by a man, because it is a very challenging position
Al Baker’s step back as CEO was unexpected, especially considering that the airline recovered from the COVID-19 crisis and had almost returned to 2019 passenger levels. Nevertheless, Qatar Airways recorded a 21% drop in profit in the fiscal year to the end of March 2023. This result below expectations combined with other factors may have led to his exit from the airline board of executives.
Alan Joyce
Alan Joyce held the reins of Qantas for over 15 years, leading Qantas through several crises, from the turnaround strategy implemented in 2011 to the COVID-19 pandemic that heavily affected the air transport industry worldwide in 2020. Over the years, Joyce built up the reputation of the problem-solving CEO, who made Qantas overcome challenging periods for the airline through uncommon approaches. In 2011, Joyce grounded the whole fleet in response to the industrial action developed by some employees who had been locked out, eventually the airline managed to recover from the crisis and expanded its operations.
In 2019, Joyce promoted the testing of non-stop flights between Australia and Europe, which proved to be successful, especially between Perth and London, providing Qantas with a competitive advantage over the Gulf and Asian competitors. Furthermore, the COVID-19 crisis was positively overcome by Qantas under the leadership of Joyce, with 2022 and 2023 being record years from the revenue point of view.
Nevertheless, the controversy caused by the unrefunded tickets released during the pandemic and the protectionism dispute against Qatar Airways led to Joyce’s exit from Qantas.
Curious coincidence
Al Baker and Joyce were involved in a heated dispute last summer, due to the Australian government’s denial of Qatar Airways’ request for extra flight permission to some Australian cities. The interesting coincidence is that both CEOs were removed some months following the dispute. On one hand, Joyce lost his chair due to its protectionism requests over the Australian government, on the other hand, Al Baker had to step back for different reasons. Nevertheless, both of them left the lead of their airlines after many years of unrivalled leadership.
To learn more about the dispute between Qatar Airways and the Australian government, click the following link to read the blog’s dedicated article.
Fabio Lazzerini
Whilst the exit of both Al Baker and Joyce astonished Aviation analysts, the removal of Fabio Lazzerini from ITA Airways’ board did not surprise experts. Lazzerini was appointed CEO of former Italian flag carrier Alitalia in 2017, and from that moment the airline never reached break-even. Even following several restructuring plans through Chapter 11, featuring fleet and employee reduction, and route network revision, the airline did not succeed in reducing costs and continued to generate operating losses of up to 600 million euros per year.
In 2021, Ita Airways was constituted and Lazzerini kept its place as CEO intending to lead the carrier to profitability and attract new partners. With Lufthansa approaching ITA Airways to take over a part of its shares, it seemed reasonable for the board to remove Lazzerini, as stated by CNN journalist Richard Quest during an interview with Lazzerini in July 2023.
Quest, 2023
Are you a dead walking man?
Bottom line
In conclusion, an airline’s board of executives decides whether to confirm their trust in the current managing director or appoint a new CEO, assessing several factors such as the company’s revenue and strategy. Nevertheless, generating profits may not be sufficient for a CEO to secure their place; both Qatar Airways and Qantas were performing pretty well when Al Baker and Joyce were removed. Furthermore, airline boards may think that since their organisations have overcome dramatic recession periods and are currently growing, they could continue to consolidate their results even without the managing director who guided them through the storms, the COVID-19 pandemic, for instance.
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