The Qantas Airways Limited (ASX: QAN) share price is down 2.13% in early trade Monday with a union calling for chief executive Alan Joyce to resign in the aftermath of his apology to customers.
Over the weekend, Qantas offered its frequent flyers gifts such as $50 credit and lounge passes to quell anger over its service quality this year.
"Over the past few months, too many of you have had flights delayed, flights cancelled and bags misplaced," Joyce said.
"On behalf of the national carrier, I want to apologise and assure you that we're working hard to get back to our best."
However, Transport Workers' Union national secretary Michael Kaine labelled the apology "a stunt" that does nothing to solve the problems.
"Enough of the gimmicks," he said.
"If Qantas management, or indeed Joyce, really cared about customers, the right thing to do would be to appoint a new CEO with the business acumen to bring back highly trained, experienced workers and treat them with respect."
Image source: Getty Images
Customers and regulators are all frowning at Qantas
Despite Australians again travelling in massive numbers this year after years of interstate and international border restrictions, the Qantas share price has dropped 8.7% so far in 2022.
Customers have heavily criticised the airline for charging a premium over its budget rivals in return for its service, but not delivering on that premise.
Joyce blamed "good reasons" for the issues.
"We're already seeing a sustained improvement in baggage handling and on-time performance, and while factors out of our control like weather can have an impact on our schedule, we expect things to keep improving each week."
The news is not much better in the back office either.
Earlier this year, Qantas proposed to acquire its wet lease provider Alliance Aviation Services Ltd (ASX: AQZ) in a $765 million deal.
But recently the Australian Competition and Consumer Competition has expressed concerns about the potential adverse effects of such a takeover on the aviation industry.
The watchdog has the power to block the deal if its final report concludes that is the best route to preserve competition in the sector.
