Dixon won't be moved from Qantas

One of the industry's most highly respected and successful chief executives, Geoff Dixon of Qantas, will not be bowing out as expected next year. The carrier has confirmed that the 66-year-old, whose contract was due to expire on 1 July 2007, has signed an "ongoing" contract that will extend his service at least into 2008 and possibly beyond.

Qantas is clearly not ready to begin a succession process that had penciled either chief financial officer (CFO) Peter Gregg or executive general manager John Borghetti as potential candidates to take over from Dixon. The carrier announced that Gregg, whose contract was up later this year, has also agreed to remain with Qantas as CFO. He too will have an "ongoing" contract.

Chairman Margaret Jackson said that continuity of leadership in the current aviation environment was important in the airline's decision. She described Dixon as "an outstanding chief executive. His leadership and experience have been invaluable since he took the role in March 2001, with Qantas outperforming most of its peers in the global airline industry."

Perhaps Qantas is ready to take a leaf out of the book of arch-rival Emirates, where 77 year-old Maurice Flanagan continues to lead the Middle Eastern carrier and is encouraged to do so. Age, for the Arab leaders of Emirates, is immaterial. It is the capacity and ability to do the job that is important.