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back into the airline under their existing workplace arrangements. And that’s what the unions did not like. Documents filed by the Australian and International Pilots’ Association in the Federal Court in February 2007 alleged that former long-haul Australian Airlines pilots were now flying Qantas jets on Cairns–Tokyo and Sydney–Manila routes. While a Qantas pilot would be paid up to $187 an hour for the job and a Qantas first officer $123 an hour, the Australian Airlines crews were doing it for 20 per cent less. There were 94 Australian Airlines pilots in Qantas uniforms working for less money, said the Association as it sought recompense under the Workplace Relations Act.

Australian Airlines’ problems had begun as early as its inaugural flight from Melbourne to Honolulu, when the aircraft was delayed after fuel loaded into the centre wing tank leaked onto the tarmac. The leak was eventually traced to faulty seals and proved another public embarrassment. And slipping through almost unnoticed at the time of its launch were the activities of Australian Roger Donazzan, who had seen the business opportunities on offer in the Japanese ski resorts of the island of Hokkaido. He bought up land there before Qantas announced that Australian Airlines would be flying there direct. As 50,000 Australian skiers, including Matrix star Hugo Weaving and his family, headed to the new Japanese ski fields on Australian Airlines jets, Donazzan teamed up with Colin Hackworth, the former director of the Mount Hotham and Falls Creek ski resorts in Australia, to announce the development of an ambitious 8000-bed ski village and resort. It was a sure-fire winner and they would ultimately sell it to a Hong Kong development company backed by billionaire Richard Li for an undisclosed, but presumably extraordinarily large, sum.

Questions were raised by the media when it was revealed that Donazzan’s wife and business partner was Margaret Jackson – chairman of Qantas. Harmony Resorts Niseko was registered in November 2003 and was a quarter owned by Donazzan and Jackson. Donazzan had 1.75 million shares and Jackson one million. In June the following year Qantas announced that Australian Airlines would be running a twice-weekly service to Hokkaido during the ski season. Jackson told the Sydney Morning Herald that she had advised the Qantas board of her husband’s position and had excused herself from any meetings when Japan was discussed. Therefore she had no knowledge of the impending flights to Japan.

Nor did she have a problem telling the board about flying four directors of her husband’s company out to Japan with Qantas for free. In the annual report for 2005–6 the fine print revealed that Qantas had ‘sponsored’ four economy airfares for directors of the ski company Donazzan chaired. Jackson maintained her position that she had done nothing wrong and the board apparently agreed. As did the company, which, in September 2009, stressed that the decisions to fly to Sapporo in 2004 and then stop flights in 2006 were management decisions supported by the board on commercial grounds. It confirmed the annual reports of 2006 and 2007 included disclosure entries with regard to Roger Donazzan and his position as chairman of Harmony Resorts Niseko Pty Ltd. In response to questions it said: ‘Qantas upholds the highest standards of corporate governance and rejects any suggestion of governance issues in this specific instance.’33

BRUCE MCCAFFREY LOOKED at the human resources woman in stunned disbelief. For 26 years he had been the efficient head of Qantas freight in America. Now this woman, flown in especially from Australia, was telling him his job was finished, ‘based on performance’.1 But his performance had been exceptional. His performance reviews year after year were excellent. He had built the Qantas share of Australian freight flown through the United States from 15 per cent to 25 per cent and had hit budget for 24 of his 26 years in the top job – one of those he missed was during 9/11. How could he be sacked based on his performance? ‘Actually, we don