...Assessment 3: A case study of Qantas Airline: The grounded kangaroo EXECUTIVE SUMMARY Qantas is the world’s second oldest airline and it fall into a long-run labour dispute which once stopped the running of the company. The CEO of Qantas, Alan Joyce has taken several actions before and during the dispute. This essay will discuss the reason and the cause of such industrial relations problem. Then, to analysis and judge the industrial action of both Qantas and the labour unions with some of the management concept. In the last, possible solution and recommendation will discuss to show the benefit of management skills. Table of contents INTRODUCTION 1-2 PROBLEM IDENTIFICATION2-3 PROBLEM ANALYSIS AND JUSTIFICATION3-5 ALTERNATIVE SOLUTIONS5-6 CONCLUSION AND RECOMMENDATIONS6-7 INTRODUCTION Qantas is the world's second oldest airline. Founded in the Queensland outback in 1920, it is Australia’s largest domestic and international airline and is recognized as one of the heads of world long distance airline companies, having services from Australia to North America and Europe. Qantas today employs approximately 33,600 people and offers services across a network spanning 182 destinations in 44 countries around the world. On 29 October 2011, Qantas chief executive, Alan Joyce took a big gamble; He claimed to ground all the planes and cancelled all flights in order to get rid of a long-run labour dispute and the conflict with Unions. This bold or perhaps impetuous action...
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...EXECUTIVE SUMMARY Qantas is the world’s second oldest airline and it fall into a long-run labour dispute which once stopped the running of the company. The CEO of Qantas, Alan Joyce has taken several actions before and during the dispute. This essay will discuss the reason and the cause of such industrial relations problem. Then, to analysis and judge the industrial action of both Qantas and the labour unions with some of the management concept. In the last, possible solution and recommendation will discuss to show the benefit of management skills. Table of contents INTRODUCTION 1-2 PROBLEM IDENTIFICATION2-3 PROBLEM ANALYSIS AND JUSTIFICATION3-5 ALTERNATIVE SOLUTIONS5-6 CONCLUSION AND RECOMMENDATIONS6-7 INTRODUCTION Qantas is the world's second oldest airline. Founded in the Queensland outback in 1920, it is Australia’s largest domestic and international airline and is recognized as one of the heads of world long distance airline companies, having services from Australia to North America and Europe. Qantas today employs approximately 33,600 people and offers services across a network spanning 182 destinations in 44 countries around the world. On 29 October 2011, Qantas chief executive, Alan Joyce took a big gamble; He claimed to ground all the planes and cancelled all flights in order to get rid of a long-run labour dispute and the conflict with Unions. This bold or perhaps impetuous action caused several negative influences. Over 13000 passengers were stranded...
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...QANTAS AIRWAYS MEDIA STRATEGY ANALYSIS WITH EMPHASIS ON 1ST CLASS TARGET MARKET USING TELEVISION AS A MEDIA CHANNEL ABSTRACT This paper explores the current media advertising strategy of Qantas Airways in the recent past. The research seeks to evaluate these strategies against those used by its main competitors with a view to recommending the most suitable media campaign strategies that can be employed to maintain Qantas Airways dominance in market share in the domestic home market and increase its standing as regards the international flights market. The analysis will take into consideration certain aspects such as the main media objectives, the strategy rationale; the media class selection rationale/evaluation, budget approach, and estimated performance results with regard to the reach anticipated in the television segment. The main target of any media campaign has been identified as the first class sector and so the bulk of the concentration of this analysis is geared towards that end. Keywords: Qantas Airways, media, advertising, television QANTAS AIRWAYS MEDIA STRATEGY ANALYSIS WITH EMPHASIS ON 1ST CLASS TARGET MARKET USING TELEVISION AS A MEDIA CHANNEL Queensland and Northern Territory Aerial Services (QANTAS) Airways according the online encyclopedia, Wikipedia, dominates the Australian domestic market with a market share of 65%. This figure is corroborated by the latest January 2012 Qantas report on independent airline review website...
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...Assignment Title: QANTAS, JETSTAR AND VIRGIN AUSTRALIA A TALE OF CHANGING STRATEGIES Topic code and name | BUSN 3055 | Word count | 2020 | 1. Differentiated pricing is among the widely practiced Revenue Management tactics in which a firm offers its products/services at differentiated prices to distinct markets. And this tactic has been noticed by airline industry for more than four decades. Revenue Management also known as Yield Management has been well recognized as an essential practice in many businesses, and it is defined as the set of strategies adopted by a business to improve its profitability (Philips, 2005). It is among the most important applications of management science and operation research (Bell, 1998). Qantas, Australia’s foremost domestic and international carrier, established Jetstar in May 2004 as a budget airline. Its purpose is to cover the low-cost segment of the market, which began in around the year 2000 with the launch of a competitor, Virgin Blue. Until the time Jetstar began operations, Virgin Blue had been successfully eroding Qantas’s air market share, indeed with the collapsing of Ansett Airlines (Easdown, 2002), and capture around one-third of domestic airline market. In response, Jetstar was also designed to be a no-frills carrier, predominantly targeted at the leisure market. (Case Study) Market segmentation is a strategy that involved dividing the target market into subsets of consumers who have common needs and priorities....
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...Summary These have been unstable times for the Australian airline industry. It has been faced with a marked decline in global tourism after the September 2001 terrorist attacks in the United States. Recently, there has been traffic loss which is attributed to the war in Iraq and severs acute respiratory syndrome (SARS) occurrences in parts of Canada and Asia. In addition, to this mayhem the industry has gone through main structural changes since 1990s. There were four airlines on the essential routes but currently they are two. In 2000, the local trunk routes were controlled by Ansett Australia and Qantas Airways with new competitors Impulse Airlines and Virgin Blue rising in niche market. Currently the industry has irregular two airline structures, with Qantas leading since its occupation of Impulse Airlines in 2001 and the Ansett group’s following collapse in September 2001. On the contrary, Virgin Blue is not a member of an association, its service frequencies are reserved in comparison with those of Qantas, and its local network is not as extensive as that of Qantas is dynamic. In reaction to Virgin blue success, Qantas is taking steps to expand its allocation of the budget travel market, while Virgin is now in quest of expansion past its vacation traveller position by developing its business travel market. The government is showing a liking for administrative way outs such as a certain number of local airline slots at climax times, a restriction on the number of hourly...
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...Title: Qantas and Emirates Alliance Strategy Course Name: Strategy Development and Initiatives Course Code: MGMT20112 Course Coordinator: Daniel Abell Lecture Name: Daniel Abell Tutor: Daniel Abell Students: Ruth Calasan s0235265 Tracy Nguyen s222275 Felipe Gutierrez s0234289 Due Date: 19/08/2013 Date Submitted: 26/08/2013 Word Count: 3500 Words Executive Summary Last 06 September 2012, Qantas had entered a 10-year partnership with Emirates that will go beyond the code-sharing and collaboration in terms of coordinated pricing, sales, and scheduling and benefit-sharing model which aims to jointly deploy one or more resource combinations. An in-depth analysis has been done on what are the internal and external factors that influence Qantas to form an alliance with Emirates. These factors are: Deregulation of open skies creating economic environment and open equal opportunities for all air carriers Excessive capacity, fuel cost, foreign currency exposure and threat of new entrants. Changes in customer taste and destinations, power of customers and growth of airlines alliances. Heavy investments in railways and telecommunication tools Consumer protection and passenger rights Growing percentage of global emission Airport slots allocations Similarity of resources and services such as Singapore Airlines and Cathay Pacific Improving services for better price Improving power of negotiation between the alliance and suppliers During the analysis...
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...Accounting Theory Case Study 10.2 Accounting for frequent flyer points: fact or fiction ? Maylinda Irmayanti (023111146) Windy Ayu Wulandari (023111239) Case Study 10.2 Accounting for frequent flyer points: fact or fiction? Accounting requirements under IFRS have changed the way airlines account for frequent flyer points. In the past, the cost/provision approach accounting practices were used. Under this method, the upfront sale of points to bank, credit card companies, mortgage brokers, and general retailers was recorded as revenue in the income statement at the time of sale. The expense related to the sale, that is the cost of travel, was recorded at a later period, when the airline provided the travel service, or gave up the ‘free’ seat. The Australian Financial Review (AFR) reported in December 2004 that the sale of points to third parties, rather than giving them away to loyal customers, made the schemes profitable for Qantas and major network carriers in the United States and Europe. The newspaper claimed that when Qantas sought additional debt or equity capital, it would have to treat its frequent flyer point liability on the same basis as other global firm, in the name of equality and transparency. Qantas responded immediately to the AFR article. The company stated that it establishes a liability and takes a charge to the profit and loss account for the cost of providing a ‘free’ seat at the time the frequent flyer revenue...
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...INTRODUCTION Qantas is the acronym of the Queensland and Northern Territory Air Services. Qantas is the world's second oldest airline and was founded in the Queensland outback in 1920. It is Australia’s largest domestic and international airline and is recognised as one of the world's leading long distance carriers. It has pioneered services from Australia to North America and Europe. The Qantas Group today employs approximately 32,500 people and offers services across a network spanning 182 destinations in 44 countries (including those covered by codeshare partners) in Australia, Asia and the Pacific, the Americas, Europe, the Middle East and Africa. [16] The Qantas Group’s main business lies in the transportation of passengers via two complementary airline brands – Qantas and Jetstar. The Sub-divisions of the brands are shown in the figure below: In addition to the airline brands, the Qantas Group operates Qantas Frequent Flyer and Qantas Freight. The Group has additional equity interests in airline and airline-related businesses. Qantas is also a partner with Australia Post in two jointly controlled entities: Australian air Express and Star Track Express, a national road freight business. [12] The Qantas Group’s long term vision is ‘to operate the world’s best premium airline, Qantas, and the world’s best low fares carrier, Jetstar.’ [13] To achieve this, the Group is focused on five key elements: * Safety is our first priority * Right aircraft, right...
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...2 Price 9 4.3 Place 10 4.4 Promotion 10 4.5 Features and Benefits 10 5. Conclusion 12 Reference 13 1. Introduction Australian domestic airlines industry has recently had a major change in competitiveness when Virgin Blue entered on the market. Their low cost fares strategy quickly captured 25% of the market share. Analysts have predicted that Virgin Blue would grow to reach a third of the market until next year. The success of the Virgin Blue’s new business model is based on the balance between affordable airfares and company’s profitability. This model leaded to a new consumer behavior, forcing QANTAS to study the new market niche and consequently study the feasibility of opening a new low-cost airlines. The aim of this study is to propose to the creation of a new company for Australian domestic airline called KOALA AIRLINES. Two questions must be answered by the study: first, how will this new airline affect QANTAS business? Second, should we undertake this opportunity? 2. Evaluation Some initial questions are important for understanding the market time with the introduction of a new competing company. How will this opportunity affect your current customers? There is a constant challenge of today's airlines to differentiate themselves by offering better service, greater agility and lower cost. This allows a reduction in the buyers’ bargaining power, since they do not find a personalized...
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...AirAsia Case Study Abstract—This paper focuses on the company AirAsia. We will be talking about their strategy through out this paper and will also discuss their position in the global market. AirAsia’s strategy is to become the largest low cost airline in Asia; however, their coverage stays within south east Asia, which with our consultation and data presented in this paper we can analyze and seek a path towards a much larger coverage and becoming the leading largest low cost airline in the world. For the sake of this paper, we will be focusing on AiAsia’s partnership with Emirates in the middle east region. Keywords—AirAsia; Strategy; Sustainable Growth; Low-cost Airline; Alliance; Global Market Analysis; Introduction AirAsia, a successful global company based in Malaysia has been transporting people in Asian for over 15 years. The company is however thinking about expanding their coverage through out all Asia; currently they are covering and more focusing in East and Southeast Asia. Analyzing AirAsia’s strategy will help us understand any trends that is either helping them or decreasing their growth, hence, with proper recommendations we would be able to help AirAsia achieve its goal: Becoming the largest low-cost carrier in Asia. Having that said, by looking the global market and the growth rate of AirAsia; the company will be able to become the world’s largest low-cost carrier instead of only Asia. This requires the company to make a few smart modifications...
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...Qantas Airlines Business Report 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 operations include catering, tourism and E-commerce devoted to transport and air travel. Qantas has undertaken significant changes over the last decade to cope with internal and external factors such as the terrorist attacks on September 11, 2001 which effectively reduced the demand for international travel. Qantas initially reduced its international travel flying capacity by 11%. Fortunately, the collapse of Ansett which halted domestic competition in the Australian aviation industry which had dropped the bidding price war for consumer finances, softened the blow on September 12, 2001. The source of change: The factors that had caused Qantas to change were that Qantas had to become: • A more competitive, efficient and profitable business with...
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...1. Introduction There has been a global crisis in the Airline industry in recent times. This is attributed to the hiking in oil prices, large capital requirements (Capital assets) and stiff global competition within the airline industry, such as, the Gulf airline. The effect of the rising dollar has been significantly contributed to the hiking ticket prices of the Australian airline sector. The main Australian airlines have been impacted by the global crisis. This specific article in the Financial Times Review(Clarke & Smith, 2011), discusses that strategically Qantas was facing hard times due to the environment of the global financial crisis and it had embarked on an implementation plan to decrease internal and external flights to counter the effect of hiking oil prices and operational cost. However, in the United Arab Emirates, has been experienced growth and this has a direct concern to the threat of competition to Qantas (Vesperman, Wald & Gleich 2008, pp. 388-394). All these factors above are a contributed force to Qantas to remain competitive. This paper seeks To address the approaches that should be engaged by Qantas that are necessary to ensure ongoing competitive advantages for the future of the airline industry within this hypercompetitive environment. 2. Strategic Management and Strategic Competitiveness Strategic management is a continuous process that involves reviewing and directing the activities of a business and the environment threats and opportunities...
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...Most Important Macro Environment Factors In Qantas Tourism Essay ukessays.com /essays/tourism/most-important-macro-environment-factors-in-qantas-tourismessay.php Corporate strategy of Qantas has been supporting all its business objectives and also employee level individual objectives so that the company produces better results for the satisfaction of customers. Airline industry is a huge place where different companies are working and if planning and strategic decisions do not meet the needs of the current environment of the business than it would be bad for the company. Marketing and Auditing are the key areas where the strategic decisions of the Qantas have to focus. In Australia the airline industry has been under crisis since 2000 so the Qantas had to tackle the situation by strategic moves and proper planning has to be done for that. Marketing auditing has been done by the company several times to check the effectiveness of the strategic decisions that were being made to support the marketing activities regarding new and old customers (Kain and Webb, 2003). In addition to these, a significant worldwide leaning in rapid look of low-cost transporter was empirical and the challenge for Qantas to maintain both the low cost and high quality standards was difficult but workable and it worked on it. Australian airline industry was not opposed to this, two reasonably priced airlines that is to say wish and Virgin Blue Airlines were launched in 2000 and so they created a sense of...
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...will be discussed in evaluation section of this report. In addition to the conclusion of evaluation; this report will also answer the case studies that being related to Air New Zealand, they are: 1. Discuss how barriers to entry in the airline industry have changed in the past decade. 2. In light of such lowering of barriers, what opportunities are there for there for Air New Zealand to pursue? 3. Air New Zealand must consider different stakeholders in its pursuit of corporate strategies. Identify the key stakeholders and their concerns Introduction Air New Zealand Limited, is the national airline and flag carrier of New Zealand. Since the appointment of Ralph Norris as Managing Director and CEO of Air New Zealand in February 2002, Air New Zealand has been working on its new strategic direction. Structural changes in the marketplace made a new direction indispensable and Air NZ is now turning away from inflexible service offerings to align its route and service standards to customer needs. This report will provide an analysis of the background, current situation&strategies, SWOT, trends and models of Air New Zealand. Background Air New Zealand, originally founded as Tasman Empire Airways Limited (TEAL) in 1940 and changes name to its present name in 1965, is the national carrier of New Zealand and the only airline circumnavigating...
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...The Transformation Continues QANTAS SUSTAINABILITY REVIEW 2013 This page has been intentionally left blank TABLE OF CONTENTS Page Introduction Governance − − − − Corporate Governance Business Resilience Group Security Group Risk and Audit 2 4 4 9 10 11 13 15 19 22 31 38 45 49 56 57 Stakeholder Engagement Financial Safety and Health Customer People Environment Procurement Community Measures Glossary The Group Strategy, supported by environment, procurement and community strategies, underpins the identification and reporting on material items. To support the Group’s core goal of delivering sustainable returns to shareholders, areas of focus are used to measure, monitor and report on the Group’s performance. Areas of focus and measures are reviewed and updated to ensure that they remain relevant. The Group Strategy drives sustainable outcomes Governance Corporate governance is core to ensuring the creation, protection and enhancement of shareholder value. Stakeholders We are committed to communicating effectively with our stakeholders. Financial Safety and Health To be recognised as the world’s leading airline group in air, ground and people safety and health. Customers Our Customers are the core of everything we do. The Group is continually striving towards providing exceptional customer experiences. Vision We strive to build a strong viable business capable of delivering sustainable returns...
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