Essay about Qantas Case Study

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.

The main focus of this report is to identify the legal classification, the characteristics, the life cycle stage of Qantas and one internal and external stakeholder that is affected by the activates of Qantas. The legal classification describes that Qantas is a public company and has changed its legal classification in the growth and maturity stages of the business life cycle. The characteristics of Qantas talks about the company's industrial classification and sector classification. The business life cycle is explained and gives reason why Qantas is in the renewal stage of post maturity. There is also description of one internal and external

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.

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. .

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.

By outsourcing, Qantas is able to significantly reduce costs and maintain it’s competitive advantage. However this advantage also has a draw back, hundreds of engineers have also been cut from their jobs and have had their jobs given to people overseas. This puts a bad reputation on the name of the business as an Australian business will cut jobs from Australian workers and supple foreign workers with jobs. Families and friends of these workers may feel resentment towards Qantas and choose to travel with another airline instead resulting in a loss of customers. This strategy has been effective in reducing cost but has resulted in a reduction of quality and safety and led to a decreased business reputation resulting in a loss of customers and stakeholders.

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.

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:

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

Combined, Qantas along Emirates offer 98 weekly routes between Dubai and Australia. This deal improved Qantas’ profit before tax with an increase of 80/90 million A$ in 2012/2013 while projecting an increase of around 400 million A$ in the financial year 2013/2014 according to an analyst at Macquarie (Joyce, 2013). This alliance surpassed the existing partnership - Etihad Airways/Virgin Australia which covers only 30 European routes (Varley, 2013). Ultimately, the alliance helped divert capital resources from Europe to