Qantas Financial Issues

Decision making is “the process of deciding about something important, especially in a group of people or in an organization” (Oxford University Press, 2017). Decision making is not knew it is something that occurs in our everyday lives. When business decisions have to be made there are decision making processes that are in place for different types of situations. When an organization is having financial issues many factors are involved and these decision making processes become the guide for the CEO’s and top leaders to follow.
In 2013-2014 a well-known company based in Australia has been having financial difficulties. Queensland and Northern Territory Aerial Services Limited (Qantas) is an Australian Airline that has a long rich history going back almost one hundred years. Qantas has become a household name in Australia and millions use their frequent flyer program. Due to rising fuel prices, a lack of tourism and competition from other local airlines Qantas has been experiencing serious financial difficulties.

The frequent flyer program which began in 1987 is the biggest money maker that Qantas has at this time with a value of $3 billion (Mena Report, 2014). Points can be earned many different ways, such as flying on thirty five different airlines, shopping, car rentals, health insurance and banking. The profits from selling this program could help bring Qantas out of debt. Qantas’ credit rating is very poor at this time and they would have a hard time borrowing money to help with this financial crisis (Ironside, 2014). They need to make a wise financial decision that will help them to get out of