Contents 1) Executive Summary 2) Background 3) Aspect and issues 4) Body 5) Recommendation 6) Conclusion 7) References Executive Summary The purpose of this report is to show how Qantas was affected by global financial crisis. Qantas is the second oldest airlines in the world. It is one of the tough competitors for other airlines. But Qantas was affected badly during the crisis, the tickets prices went up because the fuel prices went up. I have suggested few recommendations for Qantas to bounce back , what can be done without laying of the employees and have also spoke about cost cutting. Background Qantas is one of the reputed and oldest airlines in the world. Qantas was born in Winston, Queensland in the year 1920. The abbreviation is Queensland and Northern Territory Aerial service limited. It is headquartered at Sydney one of the largest building block in Australia, it is worth 50 million Australian Dollars. The turnover of the company in 2008 was $15,627 million, gradually decreased in 2009 to $14,552 million which again decreased in 2010 to $13,772 million. We can see a gradual drop in the turnover. The company made $970 million profit in the year 2008, $123 million in 2009 followed by $116 million in 2010. The number of passengers travelling in Qantas in 2008 was 33670 million, 33,969 million in 2009 followed by 32,489 million. Qantas was hit by sever crisis, the company had announced for cost reduction. Aspects and Issues through strategic management The starting point of the strategic management is said to be the DESIGN SCHOOL with an emphasis on process. However this system is entirely based on the SWOT analysis. Swot stands for strength, weakness, Opportunities and Threats. Strength is a show... ... middle of paper ... ...ring GFC. Qantas is the world second oldest airlines so they can always boast about it. The company operates internationally and also domestic air way services. Qantas approximately employs 33,000 employees. During the global financial crisis it was not that good for Qantas. However they improved in manufacturing, improvement in additional business in aviation, the travel in plane was cheaper. They were considered for best airways in servicing the customer. In 2008, during the crisis the passengers travelling in Qantas were decreased, the passengers travelling in first class were sharply reduced. So they started lay off the employees. References Bibliography Albers, S. B. (2009, March 13). crisis of Qantas. Retrieved May 14, 2014, from Qantas crisis: http://wenku.baidu.com/view/31572f48cf84b9d528ea7a56 http://inside.org.au/qantas-a-ten-point-plan/
Revenues of $10,161 million in the fiscal year ended December 2014 was seen by the organization, an increase of 5.3% over 2013.The company 's operating profit was $419 million in fiscal 2014, as compared to an operating loss of $22 million in 2013. Its net profit was $402 million in fiscal 2014, an increase of 34% over 2013 (Sutter Health, 2016).
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.
...ly First is due to their usage rate, user status and loyalty; many will continue to fly even if they consider First or Business Class poor value. An economy passenger may be behaviourally grouped by occasion; the peak time for travel is usually around the holidays so customers are busy visiting the friends or family. Qantas has marketed to travellers in the past around the holidays (Christmas and New Year) to encourage readiness among potential travellers.
... amid nations (Gerber 2002, p. 29). Although there has been a major decrease of barriers to trade liberalisation concerning flight amenities in the last century, there are imperative uncontrollable external factors a business must assess and weigh before entering international borders and becoming a prosperous globally identified firm (Ramamurti & Sarathy 1997). Qantas, a highly esteemed patriotic and iconic Australian brand has demonstrated accomplishment intercontinentally. The ultimate success of their business, in order to sustain competitiveness in their global market, will rely heavily on their continuous assessment of combined political and legal reforms, economic dynamics, sociocultural influences, technological modifications and environmental concerns and their interlocking marketing strategies to gain the most beneficial opportunities that come their way.
to two men who dressed as black folks which was seen as a form of discrimination (Mumbrella). Qantas did not know how to deal with the situation and took quite some time until they released an apology to the public for being inconsiderate (mumbrella). Qantas has had some turbulence in the past and this luxury contest has resulted in their Twitter hashtag becoming
When the attacks of September 11th occurred, the federal government had to completely close down some airports in the US. This created a negative effect on the industry as it was a shock to their entire organization. Planes in the US and around the world were canceled due to this attack as well. Planes were not flying anywhere, as the plan was to prevent any other attack. Each plane that was cancelled had to be paid by the airline company directly. According to the International Air Transport Association there was a drastic change in the amount of flights between the date before and after the event. Around 37,600 less flights flew the day after the attack had occurred. The number of flights dramatically decreased in those three days; in addition every...
For economic factor, Qantas Airways Limited was stable because the economic in Australia was in good
Qantas associates the pioneering of innovative technology in operations, aircraft and services. Qantas invests in technology, for greater customer experiences and reducing cost of service distribution. Qantas technologies include the airline ticket booking process, using online reservation systems. Qantas encourages forward thinking from employees and fosters a corporate culture to encourage diversity, inclusion and innovation for application in the workplace. Qantas are more agile, having accelerated the use of adopting new technologies, digital platforms and analytical data (Joyce,
...ry long and successful history in the airlines industry, which makes it one of the leading airlines in the world. Also, it provides the most comfortable flights and services to its costumers and employees, which makes it unique.
...n 2014) added to increased political protest for disclosure. Further following a forensic accounting report from PPB Advisory, Australian and International Pilots Association questioned the vast discrepancies between redundancies and margins between Qantas’s segments (O’Sullivan 2011) and how corporate segment’s $123m loss was allocated, contending they incurred some of it (Creedy 2011), emphasising requests for greater visibility by interest groups and accounting advisory bodies. Similarly, taxpayers, Transport Workers Union and employees (Age 2014) demanded reviews of Qantas’s books and explanations of IO strategic priorities, redundancies and failed Jetstar Asia strategy (Pauka 2014), while Virgin threatens market share with improved performance (Grimson 2014) and consistent disclosure of both international and domestic segments (Virgin Australia 2013, p. 99).
Airline and travel industry profitability has been strapped by a series of events starting with a recession in business travel after the dotcom bust, followed by 9/11, the SARS epidemic, the Iraq wars, rising aviation turbine fuel prices, and the challenge from low-cost carriers. (Narayan Pandit, 2005) The fallout from rising fuel prices has been so extreme that any efficiency gains that airlines attempted to make could not make up for structural problems where labor costs remained high and low cost competition had continued to drive down yields or average fares at leading hub airports. In the last decade, US airlines alone had a yearly average of net losses of $9.1 billion (Coombs, 2011).
Kingfisher Airlines (KFA) was founded by Vijay Malaya and he is the chairman of United Breweries group (UB group) in the year 2003. Its first airplane was launched from Mumbai to Delhi in 9th may 2005. It started as a premium business class airline company. The airlines have a tag line “Fly the good times”. At the launch of airline, Vijay Malaya said “we are committed to achieving our ambition of making Kingfisher Airlines, India’s largest private airline both in capacity and market share. The airline ushered in a new era of luxury in India’s domestic aviation sector and its brand new aircraft with stylish red interiors, and smartly dressed crew and ground staff. Kingfisher was the first Indian airline to have in-flight entertainment (IFE) systems”. (Malaya, 2005). Kingfisher airlines are one of the seven airlines which were awarded the rating of five stars by skytrax. It operates 400 flights daily including the regional and international services. In 2009 it gave the highest market share in Indian airlines industries, carrying more than 1 million passengers. The main mistake was lack of understanding of customer requirements and luxurious facilities in airlines. Organizations focus on reducing costs and usually just CEO’S and top level managers prefer business class travel. Rest of the staff mostly travels by economy class. Moreover, buying most expensive business class tickets doesn’t go down well, when seniors aim to project the image of walking the talk. Secondly, the company is facing financial crisis since Mid-2008. After merging with Air Deccan in 2007, it is a low-cost airlines, provides minimum frills to customers at reasonable rates. Th...
In the 1990s, Emirates airlines began to expand its route network to various international destinations including Paris, Rome, Zürich, and Jakarta. With the advancement in aeronautical engineering, long haul flights became more frequent which lead to the airline's route expansion and earned it the name, “finest in the sky”. By 1994, the airline had 4000 employees and netted a profit of about 24 million dollars (The Emirates Story).
Air India airline is one of the biggest airline in the India. It was established by the famous company TATA and since its incorporation. It has grown very well and has spread all over the world in the different destinations. It has become the reputable brand in the airline industry with having the operations over 152 destinations. It has link up connection in the 35 countries and it has currently having 137 fleets. This company becomes the public limited company in the 1946. The company has international and the local route and its performance is increasing day by day with the pace of the good growth as compare to the other airlines in the industries in the area and the channels in which this airline is working.
Several weaknesses in airline operations were identified as the causes of the RM1.3 billion loss. These included esclating fuel prices, increased maintenance and repair costs, staff costs, low yield per available seat kilometer ("ASK") via poor yield management and an inefficient route network.