Well, what a difference six months can make. Just take the rapid descent of Aussie high-flyer and Corporate Travel Management (CTM) founder Jamie Pherous.
Prior to August last year, he was at the helm of one of the country’s biggest travel success stories, earnings growth were strong despite a mild slowdown in profitability, and the global outlook looked relatively optimistic in a volatile environment.
Fast-forward to this week, and Pherous is out of the CEO role. To be fair, the drums have been beating for Pherous to move on for months in the wake of the unfolding overcharging crisis plaguing his business. But it is always shocking to see an industry titan tossed to the side, regardless of the circumstances.
While Pherous has now relinquished all executive duties, he will remain in a strategic advisory role for six months while the company navigates the treacherous waters ahead.
In his place for now is former chief commercial officer Ana Pedersen, who must be feeling a bit like a walking, talking bullet-proof vest this week.
CTM has also brought in a serious corporate travel heavyweight in John Snyder to help tread the precarious terrain, a former president and CEO of BCD Travel with an impressive resume.
In exiting, Pherous acknowledged the challenges arising from the accounting crisis and the company’s suspension from the ASX were having a heavy impact on CTM’s customers, employees and investors.
“In the best interests of CTM, I have decided to retire as CEO to allow new leadership to focus fully on the task ahead,” Pherous said.
While the fallen star has had many detractors during the crisis period, none were more stinging about his actions than AFR columnist Joe Aston, who uncharitably described the ousted chief as “slippery” and in need of “comeuppance”.
Another area sticking in the craw of many in the industry is the fact Pherous will still be with the company on full pay for six months and has retained millions in equity.
One vocal critic has been Luxury Escapes co-founder Adam Schwab, who recently took to LinkedIn to highlight the alleged inequity in consequences for Pherous versus a travel agent who makes blunders or does the wrong thing.
Whatever your view of Pherous personally, it now appears the company itself is in for the fight of its life. When factoring in the very possible loss of major government contracts, fines issued for overcharging, the need to pay back discrepancies, and the prospect of owing even more as accounting continues, one does not need to be Warren Buffett to see the perilous chapter could be existential.
In other news
It was a massive week for Qantas and yesterday, a very aggrieved Solomon Airlines accused the Aussie carrier of cynically driving international competition from the market.
Last month, Qantas requested to operate an extra weekly service to the country from 29 March. However, in response, Solomon Airlines argued that given demand for travel to the Solomons was dropping and not growing, it was suspicious that Qantas would look to add more capacity from Brisbane to Honiara.
“There is little likelihood that this situation will change given the Solomon Islands tourism product offering is underdeveloped and is not capable to support and increase the number of visitors and there is also no commercial activity of note which would drive increased travel,” Solomon Airlines argued.
It added that there would be no increase in schedule choice for travellers, with both carriers operating the same days and in general the same timings, therefore any added Qantas services would “simply cannibalise existing services”.
The national carrier for the Solomons also took aim at the power of the Qantas Frequent Flyer program, claiming the airline’s access to Australian-based corporate and government contracts gave them a disproportionate percentage of the higher-yielding market segments – eroding the viability of the route.
Qantas did not respond for comment when contacted.
The Flying Kangaroo was also in the crosshairs of Federal Opposition Leader Sussan Ley this week, who expressed her “deep disappointment” with its decision to scrap flights linking Melbourne with Wagga Wagga and Albury from 01 March.
The carrier reportedly made the decision because the routes were poorly subscribed, however Ley, alongside One Nation Senator Sean Bell, said they would both be demanding more details from Qantas about the call, the effect of which will no doubt deal a heavy blow to the economies of both major regional hubs.
But it wasn’t all bluster against Qantas, with the airline making the announcement that it has agreed in principle to divest its 33.32% stake in Jetstar Japan.
The agreement is expected to be reached in July 2026 and completed by June 2027, with Qantas confirming there will be no change to the shareholding or governance structure.
Qantas’ latest move in Asia followed a decision in June last year to shut down its Jetstar Asia (3K) brand, using the resources from the decision to bolster its domestic offering.
In the world of cruise, it was a sad watershed moment for Australia as the joyful whistle of Disney Cruise Line (DCL) was heard in local waters for the last time for the foreseeable future.
Disney Wonder embarked on her repositioning cruise to the United States this week, a ship that has brought many Aussie cruisers happiness and photos with Mickey Mouse over the years.
DCL is one of several cruise lines to cease homeporting vessels in Australian waters, with CLIA Australasia citing high regulatory costs as one of the key reasons for the trend.
With Aussies being such keen cruisers though, let’s hope in the words of the constantly rapturous Mickey Mouse, we’ll see ya real soon, DCL.
To finish on a slightly kooky note, all of those agents out there who are stressed out at the prospect of AI taking over can breathe a little easier. That’s because hordes of tourists who descended upon the small Tasmanian town of Weldborough got a rude shock this week when they used AI chatbot to take a dip in its hot spring.
The problem? They don’t have any. Leave it to the experts, people!
