Qantas Report

On October 22nd, 2001, the Industrial dispute between QANTAS and its employees was initiated with the offering of a new Enterprise Bargaining Agreement. This proposed an 18-month wage freeze for employees plus a sliding scale profit share scheme. Ten out of twelve unions under QANTAS accepted the terms of the agreement, barring the unions of manufacturing employees (AWU and AMWU). They were holding out for a 4-6% pay rise. On the 8th May 2002, some ten months later, the dispute was resolved when QANTAS agreed to an across the board 6% pay increase. This essay provides an in-depth analysis into the dispute, including causes, the resolution process, the role of stakeholders, and costs and benefits for all concerned.

Cowper-Smith & de Grosbois (2011, p.59) stated that airlines are not currently focusing enough on their social responsibilities, an area in which Qantas should look to be at the head of their industry. The way in which Qantas operates can have monumental impacts not only on their customers but to the environment itself. Planes although a current need in society also come with a heavy amount of baggage which influences the environment. Aircraft noise, impact on local air quality are just some of the by-products of aircraft travel (Goodman, 2009 p.14). The most discussed and criticised issue within aircraft travel in the modern climate however, is the affect that it has on the environment. This is due to amount of emissions in which are consumed through aircraft travel. Shell aviation the “leading global supplier of world-class aviation fuel and lubricants” supplies almost 7000 aircrafts with fuel each day, refuelling a plane every 12 seconds. Qantas airlines should be knowledgeable on how much fuel they are using and the type of fuel they are using. Pollution resulting from greenhouse gasses and emissions can result in horrific consequences for the environment. Examples of costs that Qantas may endure from its impact on the environment could be adding to the growing concern of global warming throughout the world (Kolstad, 1996 p.1). This is leading to issues such as sea level rising, melting of snow and ice and changes to plant growth and nutrition

The boards of directors are implicating new strategies to help Qantas renew in the post maturity stage. These strategies are:

1) Qantas Airways Limited is the national airline of Australia, it is also the largest airline in Australia. The Qantas Group’s principal business is providing domestic and international air transport services for passengers. Additionally, Qantas owns several subsidiary companies such as Jetstar and QantasLink that also operates flights to domestic and international locations, and Q Catering, a premium full service flight caterer.

Qantas is Australia’s largest domestic and international airline. Although Qantas is primarily a passenger airline, air freight is also an integral part of its core business. Other Qantas operations include catering, tourism and E-commerce devoted to transport and travel. In order to have an effective business and operations process, a company, like Qantas must be aware of the influences that can affect it. By being aware of the influences it enables the business to make decision and choices that can get the most out of each influence, by doing this it can assist the business in its endeavours for success.

Rivalry among industry competitors has caused attention to be focused on tariff levels. Airfare prices were at an all time low in 2009. This suggested a strong competitive rivalry based on price differentiation. This price differentiation will cause a dramatic loss in revenue if these prices continue to drop and this would lead to a reduced competitiveness. In an effort to safeguard revenue and reduce expenditure, Qantas has developed a strategy to deal with a change in the external competitive environment. .

Qantas’ downfall in sales/gearing in 2009 due to the GFC. This year Qantas’ decided not to pay dividends and instead took the retained profits and spent the capital on new aircraft and renewal within the business in order to increase revenue.

Established in 1920, Qantas is the world's 11th largest airline and the 2nd oldest. It was founded in the Queensland outback as the Queensland and Northern territory Aerial Service (QANTAS) Limited, by pioneer aviators Hudson Fysh, Paul McGinness and Fergus McMaster. Qantas was a former government owned business; it did not view profits or efficiency as its prime goal. In 1993 a 25% stake was sold to British Airways. Qantas was privatised in 1995 and has had to adopt management practices to overcome both internal and external influences and had to change its narrow-minded culture. Although Qantas is primarily a passenger airline, air freight is also an integral part of its core business. Other Qantas

Another strategy that Qantas has used to respond to globalisation is through product differentiation. Qantas maintained it’s competitive advantage by providing a service which was unique and different to those of it’s competitor. Qantas was known for having ‘the best safety record of any airline in the world’. The airline was also ‘true-blue’ Australian and was Australian owned. This made the business different and attracted customers towards Qantas giving it a competitive edge over it’s foreign competition. Following the deregulation of Qantas, the business has started to lose sight of what it really was. The business has recently decided to implement another

Qantas’ main weaknesses come from the high risk nature of airlines (possibility of crashes and large scale incidents), the complexity of the aircraft they buy which could lead to costs of re-training pilots to fly that particular aircraft and may lead to higher labour and the recent string of incidents have undoubtedly hindered Qantas’ image. One of the most recent incidents occurred while a reasonably new Qantas A380 was flying from Singapore to Sydney when it experienced engine and hydraulic problems forcing it to hastily turn back and make an emergency landing in Singapore. This

Founded in Queensland Australia in 1920, Qantas has now become Australia 's biggest name in relation to domestic and international airline. Originally registered as the Queensland and Northern Territory Aerial Services Limited (QANTAS). Qantas is widely regarded as one of the world 's top airlines and one of the strongest brands in Australia. Over the years it has managed to build a reputation for excellence in

Qantas is established in the Queensland outback in 1920 and after that it has become biggest domestic and international airline and strong brand in the Australia. It is enrolled as the Queensland and Northern Territory Aerial Services Limited (QANTAS) and the group two airlines brands are Qantas and Jetstar those provides transportation services of the customers. Qantas created its strong brand reputation through deliver safe and secure services, focus on customer services, maintain reliability of operations and focus on maintenance, engineering and technology (Qantas Airways Limited, 2014). Quanta main business aims or objectives are:

The weakness of Qantas lies in the management and their lack of investment in their employees. The management weakness can be seen in many of the financial and operational issues. Qantas faces several Industrial disputes which the company’s competitors do not experience. These issues affect the interior structure and the external opportunities to gain new customers. This also makes this their biggest

Launched just 8 years ago, today, the Jetstar Group consists of a network of value-based air carriers that deliver high quality air passenger services for budget-minded travelers across Australia, New Zealand and the Asia Pacific region. Beginning with just 400 employees, the company currently employs more than 7,000 people and carries about 20 million passengers a year. To gain some insights into how the Jetstar Group achieved this impressive growth in such a short amount of time, this paper provides a review of the relevant literature concerning the air passenger industry in general and the business strategy used by the Jetstar Group in particular. A summary of the research and recommendations for this company are provided in the paper's conclusion.

Through s Porters Five Forces analysis (Figure 1 – Appendices) the greatest threat for Qantas is the rivalry. Qantas is taking advantage of this opportunity as through the alliance it creates greater certainty for the shareholders while also being able to increase its numbers in international routes to 33 one-stop destinations in Europe in addition to 31 one-stop destinations in the Middle East and North Africa (Ryan, 2012). Additionally, as competition was putting pressure on the market while Qantas was restricted by financial reasons, this alliance came as a great opportunity. Furthermore, from 31st of March Qantas frequent flier point users were able to book Emirates flights while the customers’ high status with Qantas was recognized at Emirates as well. Lastly, on European, Asian and African destinations Qantas mirrored Emirates baggage policies (from 20kg to 30kg) (Panaus Travel, 2013).