Qantas Extends Chairman Membership to Prominent Shareholders. In a surprising development, Qantas has welcomed senior investors from one of its significant shareholders into the prestigious Chairman’s Lounge, typically reserved for prominent figures and executives of publicly traded companies.

Pendal Group Notable Members

Crispin Murray, Head of Equities at Pendal Group, and Sondal Bensan, the lead Qantas analyst at the same firm, have been granted exclusive access to this invitation-only lounge. Pendal Group, now under the ownership of Perpetual, has maintained a substantial stake in Qantas since 2013, representing approximately 4% of its total Australian holdings.

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Public Figures and Regulatory Concerns

This move has raised eyebrows and led to concerns regarding the airline’s influence over various sectors that oversee its operations. The trigger for these concerns was a report by The Australian Financial Review’s Rear Window column, revealing that even Prime Minister Anthony Albanese’s 23-year-old son Nathan was bestowed with a membership to the Chairman’s Lounge.

Government regulators, High Court judges, and politicians have also faced scrutiny for their affiliations with this elite establishment. Prominent figures, including Gina Cass-Gottlieb, head of the Australian Competition and Consumer Commission, and Joseph Longo, chairman of the Australian Securities and Investments Commission, have acknowledged their memberships.

Corporate Ethics and Membership Disclosure

According to a Pendal spokesperson, the memberships of Bensan and Murray have been disclosed to Pendal and Perpetual, and they are in compliance with the companies’ codes of conduct. Both organizations have established policies to manage potential conflicts and ensure the preservation of fiduciary responsibilities to their clients.

Industry-Wide Access

Interestingly, it appears that the inclusion of senior Pendal investors is not an isolated case. Many other fund managers and major Qantas shareholders also enjoy the benefits of the Chairman’s Lounge. These benefits often include complimentary flight upgrades, dedicated customer service lines, and priority boarding. Moreover, fund managers often have access to Virgin Australia’s equivalent, the invitation-only Beyond lounge, previously known as The Club.

Secrecy and Invitations

Qantas maintains a strict policy of not disclosing who holds access to the Chairman’s Lounge for privacy reasons, as well as not revealing who utilizes its associated benefits. Invitations to the lounge are extended by the CEO, typically for a two-year term, subject to renewal at the airline’s discretion. No membership fees are charged to its members.

Recent Senate Submission and Notable Guests

In a recent submission to the Senate, following an inquiry into bilateral air rights agreements, Qantas reiterated its stance of not revealing individual members. However, it confirmed that senior leaders of key Commonwealth departments and agencies, as well as senior military officials and chief commissioners, along with chief executives of vital agencies, have been offered access to its six lounges.

Pendal Influence and Relationships

Pendal holds a 5% stake in Qantas and stands as the second-largest shareholder of Nine Entertainment, the owner of The Australian Financial Review. Additionally, several executives from Nine also hold memberships in the Chairman’s Lounge and Virgin’s Beyond lounge.

The relationship between Pendal and Qantas gained attention when it was revealed that Bensan holds a substantial number of Qantas shares in his name, making him one of the airline’s top shareholders.

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Stock Market Challenges

Notably, Qantas has faced a significant decline in its share price, witnessing a nearly 30% drop over the past six months, with shares trading at $4.73. Despite this, the Chairman’s Lounge continues to be a place of interest and intrigue for investors and figures from diverse sectors.