Business report for Qantas

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.

Another strategy that Qantas has used to respond to globalisation is through product differentiation. Qantas maintained it’s competitive advantage by providing a service which was unique and different to those of it’s competitor. Qantas was known for having ‘the best safety record of any airline in the world’. The airline was also ‘true-blue’ Australian and was Australian owned. This made the business different and attracted customers towards Qantas giving it a competitive edge over it’s foreign competition. Following the deregulation of Qantas, the business has started to lose sight of what it really was. The business has recently decided to implement another

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.

Overall, Qantas Airway is a strongly established airline company in the world; however it will need strategic planning in order to tackle potential threats.

2. In 2017 Qantas’ marketing objectives were to increase sales revenue, maintain Qantas’/Jet stars combined domestic market share of 62%, grow their frequent flyer program members and partners, grow a jet star brand in Asia, enhance partnerships (with Emirates, American airlines, and China Eastern) in particular to expand their international network and increase customer service standards and customer experience and more.

There are lots of future plan for the Qantas Airway. One of the most important plans is that Qantas will still keep over 27000 people be the major

* Turn around Qantas International through the “four pillars” of targeting global gateways, growing with Asia, improving the customer experience and ensuring disciplined financial management. (Qantas, 2012, p. 13)

Qantas airline went from proving taxi and joy flights to being Australia’s largest domestic and international airline. Despite years of growth and innovation, Qantas airlines started experiencing a series of difficulties due to:

The aim of this essay is to critically analyse the background of the Qantas and its decision to launch Jetstar on May 2004 that operated around 800 flights a week across network of 14 destinations within Melbourne, Sydney and Brisbane. Secondly, this essay will evaluate how Data Collection Feedback Cycle change model is used to gather major information and to critically analyse it. Thirdly, this essay will critically evaluate the background of Qantas and Virgin Blue and will also highlight various reasons that eventually led the Qantas group for the launch of the Jetstar. Fourthly, this essay will also critically analyse the revenue and profit performance of Qantas prior the introduction of Jetstar i.e. 2002. Fifthly, it will continue to

• Dependability o Although Qantas has outperformed its rivals, over the past few years, Qantas’s reliability has dropped due to mechanical failures, industrial disputes and the 2011 shutdown. o “Qantas is in a period of transformation as we make our business stronger and better” • Flexibility o Due to seasonal demands such as holidays and special events, Qantas’s performance objectives must remain flexible in order to adjust to major increases or decreases in customer demand. • Customisation o Qantas offers customisation through its membership in the Oneworld Alliance and the alternative option of Jetstar. Qantas offers economy and business class on domestic flights and economy, premium economy, business and first class on international flights.

A remote environment analysis and Industry environment analysis has been carried out for Qantas. As 80% of the total group’s revenue is “Passenger Revenue” and it operates in both Australia and overseas, the industry has been defined as domestic and international passenger airline industry.

* Qantas Airways Limited may have won the capacity war between itself and Virgin Australia, but the cost has been considerable. The company now needs to consider drastic measures that were previously out of the question, such as selling low cost carrier Jetstar or its highly profitable loyalty programme. Much of Qantas Airways Limited’s future, however, is in the hands of the Australian Parliament, and whether or not it dismantles the 1992 Qantas Sales Act to allow majority foreign ownership.

Recent growth into Queensland is hard work with Qantas defending its monopoly vigorously. There will be no easy gains at Qantas’ expense.

Optimise routes and development of new secondary hubs • Further enhance route network, venture destinations previously uncovered • Yield enhancement due to benefits of maturity • Ancillary expansion Stage 3 (we are here) Pursue regional expansion & expanding business on existing platform (ancillary) • Expand network to new countries • Develop strategic partnership for mutual benefits • Use strong brand to drive new business Stage 2 IPO Capital Raising and become publicly traded company • Strengthen financial sheets • Improve company credibility & rating • Ability to negotiate favourable terms with our suppliers Stage 1 Entry to market. Aggressive brand building & recognition • Introduction to the

Regarded as one of the worlds finest long-distance airlines, Qantas is a premium, full-service Australian domestic and international airline which originated in Queensland that, based on reliability, is the third leading and strongest airline brand in the world, serving in over 350 routes in Africa, Asia, Australia, Europe, North American and South America (Freeman, 2015). Qantas has built a reputation of excellence in safety, operational reliability and customer service (Joyce, 2016). Their focal obligation is the transportation of clientele between regional and global destinations using their two complimentary services - Qantas and Jetstar. As a firmly-established, universal company, Qantas is constantly pressured to have high corporate responsibilities. This paper will examine the impact on equality, employment and the environment in regards to Qantas’s performance and impact on society. The review will attempt to determine whether Qantas’s positive impacts on society