...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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...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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...Apply Qantas as an Australian company increasingly operating in a global world investigating how the various macro-environmental (uncontrollable) factors impact the marketing mix (controllable) factors. Qantas was founded in 1920 and initially known as the Queensland and Northern Territory Aerial Services Limited (Qantas). It is regarded as one of Australia’s strongest brands and worlds’ leading long distance airline nationally and internationally. Qantas’ business is mainly constructed by the transportation of customers using both their airline brands Qantas and Jetstar as well as operating in other subsidiaries such as Q catering, frequent flyer, freight enterprises as well as other airlines (Qantas, 2013). It employs 33,000 people with 93 per cent of these employees being based in Australia (Qantas, 2013). Recently, Qantas has undergone changes that have threatened and seen Australians question if Qantas will remain an Australian brand. Reports have demonstrated 1000 jobs being cut due to restructuring of international arms as well as the decision to move Australian jobs offshore. Qantas has implemented plans to strengthen international ties particularly in Asia by funding start up airlines internationally. The global market is continuously evolving and as Bernard et al. stated ‘firms that are engaged in international trade are larger and more productive than the ones that serve only domestic markets’ (2007). However, the Federal transport Minister Anthony Albanese has stressed...
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...Peiris | | Yield Management Case Analysis and Report /Individual Assignment | | | Executive Summary An airline is a company that provides air transport services for travelling passengers and freight. Air travel remains a large and growing industry. It facilitates economic growth, world trade, international investment and tourism and is therefore central to the globalization taking place in many other industries. Among the airline industries, in this report it’s looked at Qantas Airlines. It voted as Australia’s favorite domestic and international airline at the 2015 Trip Advisor Travelers choice awards. Qantas Airlines established itself as a niche player in the long haul market of business travel. By continuously focusing on the needs of the customers Qantas will provide the best value proposition in the markets it serves. It offers customer a compelling value proposition; a high level of service. Qantas Airline has built a firm reputation for excellence in safety, operational reliability, engineering and maintenance & customer service. Qantas Airline is widely considered as the world’s leading long distance airline and one of the strongest brands in Australia. (http://www.qantas.com.au) Introduction Qantas is the world’s second oldest airline. The name ‘QANTAS’ came from an acronym for its original name “Queensland and Northern Territory Aerial Services”. (https://en.wikipedia.org/wiki/Qantas#Current) The Qantas airline was founded on 16 November...
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...aware of not only the internal factors that they can control, but also of the uncontrollable external factors. It is also crucial that marketers keep in mind the effects of not only domestic forces, but also international ones as well. Even back in 1977, Halfhill (1977) observed that as more companies start to use a multinational approach in business, the international marketing approach should be used. This means that companies should be aware of external environmental factors, including those external to the country in which they are based. According to Yüksel (2012), an effective method to determine the macro-environmental effects on a company and the company's ability to take these conditions and choose an appropriate direction is the PESTEL analysis (Political, Economic, Sociocultural, Technological, Environmental, Legal). To utilize this tool even further, one can apply PESTEL and the effects of the macro-environment to their business and evaluate the apparent or implicit effects on the marketing mix. Companies such as Qantas, an Australian airline company could greatly benefit from the application of PESTEL analysis. After a huge financial loss in 2011 and a huge decline in market share forcing a major structural change and the cut of 1000 jobs (Gelineau 2011), Qantas needs to observe the effects the macro-environmental effects on its marketing mix. By doing so, it will gain more insight towards making a decision of majority ownership. It must be noted, that while an in...
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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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...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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...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 travels, and the noise clampdown to ‘economic’ way outs such as crest-load pricing and the transaction of slots by public sale...
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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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...Financial Forecast! 6.0 Critical Risks! ! ! ! ! ! ! ! ! ! ! 6.1 Potential Problems! ! 6.2 Obstacles and Risks! ! 6.3 Alternative Courses of Action! 7.0 Evaluation! ! 8.0 References ! ! ! ! ! ! ! ! 1.0 Executive Summary ! Qantas is Australia’s largest domestic and international airline. It provides more than 750 international services a week to Asia, the Pacific, North and South America, Europe and South Africa. In 2008 Qantas recorded a net profit of $970 million. Its unit costs are down 2.3% mainly as a result of increased use of technology, outsourcing, relocation staff overseas, casualisation of the workforce and taking advantage of new flexibilities (AWA’s) in certain parts of the workforce. Experiences in international markets demonstrates the intricacies for Qantas operating as a global business, however Qantas has managed to deal with these complexities particularly well. Nevertheless, despite its well sustained management and business profitability, Qantas is hardly immune to the global financial crisis, and has announced capacity reductions, profit downgrades and job cuts, including 90 senior executive jobs, 500 managerial jobs, and an addition 1500 jobs, which are expected to save Qantas about $24 million a year. Qantas has to adapt new Financial Strategies in order to obtain economies of scale, and insure that they sustain a reasonable amount of...
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...QANTAS CASE SUDY ACG31- Auditing Theory and Practice Assignment 2 Word Count 2,682 QANTAS INHERENT RISK FACTORS (Question 1) 1. There is an inherent risk relating to the accuracy of an account balance of Property Plant and Equipment which is compose of freehold land, buildings, leasehold improvements and aircraft and engines. Aircraft and engines represent 70% of the total account balance of Property Plant & Equipment that is $12,341M (Annual Report 2008, p.75). The accumulated depreciation which accounts for 60% of total aircraft cost suggests the possibility that some aircraft are already obsolete as in the case of Dash 8 100 series aircraft which will retire by August 2008 (Commonwealth Securities Ltd 2008). In addition, according to a media release dated 18/7/08, Qantas will retire up to 22 older aircraft from its fleet of 228 (including announcements previously made)(Commonwealth Securities Ltd 2008). It was also reported that Qantas will proceed with its major fleet re-equipment program of new and more fuel efficient aircraft such as the A380 and B787 due to rising oil and fuel prices (Qantas Airways Limited n.d.b) This is an indication that the property plant and equipment is overvalued due to the possibility of obsolescence of some older aircraft and engines thereby resulting to material misstatement of the account balance of Property, Plant and Equipment. Physical examination of the aircrafts with...
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...EXECUTIVE SUMMARY This report aims to determine whether Qantas is suitable to be included in a diversified share portfolio aiming to maximise investor returns over the long term. Analysis began with a broad view of the airline industry, both international and domestic. Porter’s Five Forces framework is utilised to determine the strengths of buyers, sellers, potential entrants, competitors and substitutes. Overall the airline industry is characterised by high barriers to entry however these barriers are reducing and competition is increasing, particularly in the low-cost segment. Qantas was then examined utilising SWOT analysis to highlight the strengths, weaknesses, opportunities and threats particular to the airline. Qantas has a strong competitive position with a recognisable brand and loyal customer base through the use of the Frequent Flyer program. However, expansion into the Japanese domestic market could jeopardise future profitability. Other threats could arise from further technology failures, natural disasters and labour disputes. Accounting analysis of Qantas focused on the treatment of the Frequent Flyer program, hedging accounting and the adjustment of estimates relating to aircraft. It appears that management has applied prudent estimates which accurately reflect the financial position whilst allowing some flexibility. Discounted cash flow analysis was utilised to determine intrinsic equity and firm value. Key assumptions included the cost of equity, market...
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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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...Strategic Management on Qantas Airway Qantas Airway Strategic Management BUSM 3125 Group Assignment 2 Jonathon Reid Sindra Hao Ming Lee – S3301727 Table of Content Executive Summary 3 Background Information 4 SWOT Analysis 5 PESTEL Framework Analysis 6 Porter’s Five Forces Analysis 9 Qantas’ Strategic Capabilities 12 VRIN Model 14 Qantas’ Value Chain 16 Qantas’ Generic Strategies 17 Conclusion 19 Reference List 20 Executive Summary This report is going to provide a fundamental analysis inboth external and internal factors that influence Qantas Airway in competing in the aviation industry. The PESTEL framework is applied to identify how issues in the political, economic, social,technological, environmental and legal environment may affect the industry within which Qantas operates. Moreover, Porter’s five forces model also helps identify the attractiveness of the airline and aviation industry related to five competitive forces: the threat of entry, the threat of substitutes, the power of buyers, the power of suppliers and the intensity of rivalry among competitors in the existing industry (Johnson, Whittington & Scholes 2011). The external analysis is essential to determine Qantas’ opportunities and threats. Whereas the internal analysis includes understanding Qantas’ resources and competences that are likely to provide sustainable competitive advantage, identifying Qantas’ competitive position using VRIN model (value, rarity, inimitability and non-substitutability)...
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...QANTAS ANNUAL REPORT 2012 Broadening our horizons Qantas Annual Report 006 008 010 012 018 028 037 065 138 153 CHAIRMAN’S REPORT CEO’S REPORT FINANCIAL PERFORMANCE BOARD OF DIRECTORS REVIEW OF OPERATIONS CORPORATE GOVERNANCE STATEMENT DIRECTORS’ REPORT FINANCIAL REPORT SUSTAINABILITY REPORT FINANCIAL CALENDAR AND ADDITIONAL INFORMATION Broadening our horizons 002 QANTAS ANNUAL REPORT 2012 Broadening our horizons Building on unique Australian qualities – and the skills of its 33,600 people – the Qantas Group is broadening its horizons to secure a successful and profitable future. 003 004 QANTAS ANNUAL REPORT 2012 Heading For the Qantas Group, 2011/2012 was a year of transformation. We recorded an Underlying Profit Before Tax* despite significant challenges. We continued to build Qantas’ strong domestic network, Jetstar and Qantas Frequent Flyer. And we launched a five-year plan to turn around Qantas’ international network. FOR THE YEAR ENDED 30 JUNE 2012 *For explanations of non-statutory measures see the Review of Operations. 005 Building a stronger Qantas for our people, our customers, our shareholders and Australia The Qantas Group has a broad portfolio and a clearly defined strategy, with the following core goals: — Build on the Group’s strong domestic businesses through a clear focus on the customer. — Turn around Qantas International through the “four pillars” of targeting global gateways, growing with Asia, improving...
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