Qantas Airlines: A Case Study Analysis of Its Success

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.

Maintain Qantas frequent flyer as a driver of loyalty across group and as a leading loyalty program.

Qantas has been actively involved in carrying out corporate social responsibilities throughout the years. For example, they have taken measures to reduce their carbon footprint. Greenhouse gas emissions is a huge issue which looms large over the aviation industry. As such, Qantas has prioritised reducing carbon emissions from aviation fuel. Qantas has invested in next generation aircrafts which are more fuel – efficient, such as the Airbus A380 and Boeing 787 Dreamliner. The Qantas group invests in Bombardier Q400 for regional routes, which expends 35% less fuel than other similarly sized aircrafts.

Jetstar Airways Proprietary Limited are a completely owned subsidiary of the Qantas Group, they operate across 19 different Australian destinations, and 17 overseas destinations. They were established in May 2004. Jetstar’s fleet across Australia and New Zealand is made up of 80 aircraft. Their focus is on providing a low-cost or “value based” airline, and commit to doing so by ensuring a “price beat guarantee” where, if challenged, they pledge to beat rival airlines by 10% (JetStar, 2015). Their current brand slogan is “Low Fares Forever”.

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.

This method involves selling products below production cost. This attracts customers to the business, who then purchase other products. Ultimately, this improves profits, brand loyalty, and market share. Qantas has used this strategy during the launch of its subsidiary, Jetstar, in 2006. For example, flights from Melbourne to Sydney was offered at $19. These low airfares attracted customers away from its competitors, such as Virgin Blue. This had seen

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.

Management practices at Qantas are more flexible and adapted to suit challenges in society such as the reaction to terrorism, the introduction of viral disease and the ever changing market and customer requirements.

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

At the moment Australian passenger airline industry is dominated by thee large domestic carriers: Quantas, Jetstar and Virgin Blue.

This threat of further increasing fuel prices poses a greater challenge to Qantas than any international disaster. Qantas recognised that change was necessary in order to remain successful in this volatile industry. In 2006 Qantas launched Jetstar international, expanded freight and restructured catering (Qantas web site, 2008).

Reviewing the Qantas Board charter against ASX (2014) recommendations 1.4, 2.1, 2.4, 2.5, 4.1, 7.1, 7.2, 7.3, 8.1 the constitution is very clear particularly around the independence of the board and the composition of the role of Chairman and CEO as well as the committees under the board’s guidance. The board has structured itself to meet the requirements of the ASX (2014), in addition

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

Owned by parent company Qantas, the Jetstar Group is comprised of a network of value-based air carriers that deliver passenger services across Australia, New Zealand and the Asia Pacific region (About Jetstar, 2012). The Jetstar Group's most recent five-year strategy has been to "turn the international business around [by] reducing investment in underperforming business areas and directing capital towards growth opportunities" (Qantas Reports Strong Full-Year Profit in Challenging Conditions, 2011). In addition, the Jetstar Group intends to "focus on improving the customer experience, develop a stronger and broader alliance

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).