Qantas Airways Case Study

Categories: Case Study

Qantas Airways Company Background

Qantas Airways is the largest airliner in Australia not only by fleet size but also in international flights and destinations. The headquarters of Qantas is located in Sydney, New South Wales. The name Qantas is an acronym for Queensland and Northern Territory Aerial Services'. It is also known by its nickname- The Flying Kangaroo'. It was founded in Queensland in 1920 by Hudson Fysh, Paul McGinness and Fergus McMaster. Avro 504K was the first aircraft of Qantas. Back in May 1935, it started international passenger flights.

It has named its aircraft based on the theme of Greek gods, stars, people in Australian aviation history and also Australian birds. Later on, the majority of the aircraft had been named after Australian cities. Qantas has about a 65% share of the Australian domestic market. And nearly 15% of the passengers travelling in and out of Australia use this airliner. Since the inception, Qantas has operated a large number of Passenger airline subsidiaries which includes: Impulse Airlines, Australia Asia Airlines, Qantas Link, Australian Airlines, Jetstar Airways, Jetconnect.

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Qantas is the main sponsor of the Australian national rugby union team and also Australia's national association football team. It is also the sponsor of Formula One Australian Grand Prix.

Social responsibility & managerial ethics practice of Qantas Airways

Engaging with stakeholders is considered to be one of the most essential functions of any organization. Most often the stakeholders are thought to be someone who will literally determine success or failure of what an organization is trying to achieve (Graf©Buckens & Hinton, 1998).

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It might be winning a proposal, or maybe developing a project or implementation of new ways to do things. There are many effective ways of being engaged with stakeholders. And social responsibility is one of them. Social responsibility normally refers to the idea through which an organization contributes and tries its best for the advancement of society and the environment (Walters, 1977). It is considered as a voluntary procedure. And not all the organizations take effective steps regarding this. Qantas Airways is Australia's largest airline and one of the world's oldest Airlines. One of the most noticeable social responsibilities of Qantas Airways is that the group has worked together with various communities by engaging in donations and also they manage global funds to fight diseases (Qantas Airways Limited, 2010).

No doubt this is one of the most appreciated human works for those who are badly in need of medication, treatment and support to fight off the diseases that are leading them to a disaster. And the impact of this noble work is enormous. Not only it brings attention to the stakeholders but also it makes them realize about the activities the organization has been doing for all those sufferers out there which makes them more acceptable, and more reliable. And the stakeholders invest more and pay more attention to this matter. The more stakeholders are involved in an organization the more it is likely to be beneficial for the organization. Raising funds and donations play a vital role in their acceptance in the mass population. Not only it's an advancement of the society but also it helps out a large number of needy people who are suffering for long term diseases including cancer (Carroll, 1991). Managerial ethics refers to the principle and rules that tend to be decided by upper management. The management explains the rights and the wrongs in an organization.

When any kind of conflict or unexpected situation comes up it is managerial ethics that make it easier to make the right decisions (Cressey & Moore, 1983). One of the most effective and appreciated managerial ethics that is practised by Qantas Airways is their Anti-bribery law compliance policy which is applicable to all the officers, agents, consultants, directors, representatives and employees of Qantas Airways. It's such a policy that prohibits offering, giving, promising, agreeing, receiving or accepting bribes. It's really useful that can help protect an organization. By conducting these managerial ethics, Qantas Airways proves to their stakeholders that they are trustworthy and nothing unethical can ever be found within the organization. It also provides transparency among the employees which is very effective for building a positive image of Qantas Airways. It further proves that the entire workforce in Qantas Airways is educated and they are aware of everything about bribery and all the code of conducts regarding this. Enforcing these managerial ethics creates a culture of integrity which ensures that all the employees possess the skills and necessary knowledge to maintain integrity within the organization (Cressey & Moore, 1983).

Criticism & Outcomes

Qantas being a pioneer in the aviation industry fell short drowned into a nearly 2 billion US dollar loss, despite being the bearer of the Australian flag. It announced over two-billion-dollar loss before the tax loss as about 646 million US Dollars for the year 2013 and 2014. There are some serious Issues that compelled one of the oldest airways in the history of the 19th century. The problem started with bad customer service. This is a serious issue considering the managerial ethics practices where the management is under oath to provider great care to the customers while they are using the airliner for travelling. Customer service is considered as the act to take care of the customer's needs by delivering and providing all the facilities professionally. High-quality service to meet the customer's requirement is mandatory. There are many characteristics of an effective and appreciated customer care. Those include: It ensures that the delivery of products is on time. All kinds of delays and cancellations are avoided. Treating customers professionally is another characteristic. It means the use of the skill of the professional.

Professionalism is something that shows the customer they're cared for. Next, politeness plays another important role in effective and good customer care service. And the customer service of Qantas got even worse when top management failed to redeem its previous glory with solutions. The stakeholder got panicked and this resulted in a huge drop in its revenue. Which, consequently, decreased the evaluation and the top management decided to make five-thousand full-time employees the scapegoat. Many sudden fell off the track to be interested in Qantas Airways. As an organization's failure and success literally depend on the stakeholders' engagement in the organization, it was really something to be concerned about and had to take the matter into consideration. Such disaster echoes the failure of management which in turn gave birth to high operating cost, poor customer care and staffing and the deliberate pressure from other Australian airways. The decision they took was not foreshadowed, neither this was even considered as being a wrong move.

The introduction of a new fleet by the CEO resulted in devastatingly increasing pressure in the fate of Qantas. The corporate fate that was being challenging day by day was not handled strategically. The result showered upon the decision like rebuilding it with the help of other investors not bigger than 49% of the share, as the intention was to make it a government-owned airway at the end.The decision and the outcome were clear for Qantas. It required to listen to the inevitable and had to adapt the changes other competitors were bringing. It could have avoided the mass transition easily if the strategies were there to solve its continuing dilemmas as soon as possible. Otherwise, things might not be the same for Qantas Airways, once what was used to be.An environment where Qantas Operates Qantas Airways of Australia is by far the largest national flag bearer of Australia and its biggest aircraft is by armada estimate, worldwide flights and universal goals. This is considered to be the third most seasoned aircraft on the planet after KLM followed by Avianca having been established in November of the year 1920. It started worldwide traveller flights back in May of 1935. Qantas Future Planet is a leadership program for the maintainability, natural and social activities.

Comprised of six key regions of the centre, it covers zones as wide as airship and eco-friendliness, to economical items and in-flight programs. The quality of Qantas Future Planet is based on a certain something - a typical conviction among the workers, speculators, accomplices and clients in the advantages of a gainful, reasonable and ecologically cognizant aircraft. As the world evolves, it is their aim to create and bring an extensive measure of change as the climate disasters are becoming a bigger threat to the world, they are committed to taking this company to a greater level of sustainability (Qantas Airways, n.d.).

SWOT analysis

Strength

  1. A long history of operating in the airline industry
  2. A huge fleet for domestic and international routes

Weakness

  1. Poor customer care
  2. Lack of innovative strategies

Opportunity

  1. Further expansion in the global arena
  2. Making the best use of existing resources to hold on to the Australian market
  3. Creating an impression through going green

Threat

  1. Rise of new competition
  2. Government regulations limiting its area of operation

Qantas Airways Limited keeps up its prevailing position in the market by breaking down and investigating the SWOT analysis. SWOT stands for strength, weaknesses, opportunities and threats for a company. These four components are enormously important and require compelling coordination among different divisions inside the organization (Qantas Airways, n.d.).The main opportunities that are found in the environment provided by the Qantas airways include low selling rate " the lower expansion rate puts the company in a broader map in the market. The company is adopting new ideas which are separating Qantas airways and highlighting its characteristics. New technique to catch new clients will be the moderate development rate in the business and the increment in client spending which can be described as a huge opportunity (Qantas Airways, n.d.).

The main threats that are found in the environment include changing buyer behaviour in terms of purchasing conduct from the online channel. Moreover, establishing qualities of nearby wholesalers additionally shows a threat in certain business sectors as the challenge is paying better edges to neighbourhood merchants. Day by day stable gainfulness has expanded the number of players in the business over the most recent two years which has put Qantas into a climate of greater competition. Also, impersonation of the fake and low-quality item is likewise a risk to Qantas Airways Limited's item particularly in the developing markets and low pay markets (Qantas Airways, n.d.). PESTEL analysis Pestle investigation is a segment of vital administration depicts a structure of large-scale natural elements. PESTLE analysis is important for marketing development (Johnson and Scholes, 1999). PESTLE examination utilizing for a business position, showcase here and there. Utilizing PESTLE, we presently portray how it is work for Qantas.

Political

The political factor is a significant part of carriers' ventures. The political issues Qantas issue incorporates political soundness, defilement and assessment. Qantas stable with solid politic nations to maintain their business. English aviation routes and Qantas restricted are thinking about a potential which is viewed as the most goal-oriented activities procedure of universes flight's industry. Qantas has a permit to maintain their business. Qantas keep of oil under the control of "association of the oil sending out nations" can prompt fuel cost.

(E)conomical

Monetary issues are different parts of the flying industry. Swelling of money rates can influence the Qantas where they prompt temperamental of the economy. Right now, monetary retreat transformed into the financial emergency, Qantas Airways Limited will unavoidably be influenced. Remote change rates can influence Qantas carriers. The client is everything is an association. The budgetary report 30 June 2009 income was $14.3 billion however in 2012 it diminished $13.6 billion. The benefit of Qantas in the money related year was $117 million AS 30 June 2009 it diminished $112 million.

(S)ocio-culture

Qantas has loads of assortment client. The aircraft's business demonstrated an extraordinary effect on Australian life. Brand character is significant (Campbell,1999) for an aircraft venture. Qantas has a solid brand character that is the reason they are utilizing Australian national image. Australian government as of late discharged an article on the report of the status of the carrier's business. Qantas brand quality knows everywhere throughout the world. Qantas offers a diverse sort of administration utilizing minimal effort costs to client acquiring conduct.

(T)echnological

The mechanical improved advancement has Qantas aviation routes. The two new aeroplanes do relentless flying between two landmasses. Qantas have internet booking framework. Any place our client can book tickets by means of on the web. High innovation can rise client desire. Qantas dependably utilize high innovation item and administration. They have built up the universes most developed planes 380A and B747. These truly improved the comfort of flying.

E)nvironmental

Where we arranged our Qantas, the association is their condition agreeable or not. our Qantas wastages of fuel it isn't useful for the condition. It could be dirty with our condition. In our client utilizes the fabric. In the wake of utilizing fabric, it is trash put on the bean. We should pursue the Qantas utilizes the earth security framework. Qantas now and then abatement discharge of fuel.

(L)egal

Legitimate viewpoints are significant for Qantas aircraft. Qantas keeping up wellbeing and security rules for the client and workers. They are following nourishment and cleanliness jobs. Qantas industry must pursue the work principles and guideline. That law keeps up all of the representative clients. Anyone cannot smoke in aircraft.

Updated: Jul 20, 2021
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Qantas Airways Case Study. (2019, Aug 20). Retrieved from https://studymoose.com/qantas-airways-case-study-essay

Qantas Airways Case Study essay
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