Qantas Airways : The Deepest Loss

1651 Words Aug 8th, 2015 7 Pages
In 2014 Qantas Airways LTD reported the deepest loss in the airline’s history. Qantas informed they made massive losses and cut thousands of jobs (Ross K, 2014). The situation was caused by write-downs, higher fuel costs, weak demand in Australia and market capacity growth outstripping demand (Creedy S, 2014). Qantas chief executive Alan Joyce said that the company needed to take measures to fix the airline. Qantas Frequent Flyer is a loyalty program. A person who flies Qantas Airlines, books a hotel or rents a car can earn points and exchange them for rewards. Qantas Frequent Flyer has a value of $3 billion (Wardell J, 2014).
Qantas chief executive Alan Joyce decided not to sell the Frequent Flyer (Schott C, 2014). His decision was strategic. It was meant to contribute to the organizational objectives and goals. Qantas Frequent Flyer has more than 10 million members. "This business is a great business," he said. "We believe there is shareholder value still for us holding that business."(Wardell J, 2014). Strategic decision determines the destiny of the organization (Rao S, 2010). Elements of strategic decisions are achievement of the objective or desired results through the implementation of the decision (Rao S, 2010). Joyce focused on the airlines future, and strategic decisions may introduce changes in the business or customers. Joyce utilized the commitment element to the frequent flyer program, and put the strategy into action to achieve the results Qantas was able…
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