Management system of Qantas
Discuss about the Management for Qantas Empire Airways Limited.
(QEAL) basically known as Qantas is the largest airline by its fleet size. The head quarter is situated at Qantas Centre in the suburb of Mascot Sydney in Australia. It comes to 3rd oldest airline into worldwide after Aviance and KLM. Qantas has founded in Queensland (Australia) in the year 16th of November 1920 and becomes an international airline in the year May 1935. In the year 2014, Qantas has 65% of domestic shares market of Australia and also has carried 14.9% of passengers who travel inside and outside Australia. Jet-star Airways is owned by Qantas which is a lower cost airline and operates both domestic and international passengers within Australia and outside Australia. Previously, management system of Qantas was not so developed and it was running only between Brisbane and Darwin. After that the service extends to Singapore. In the year September 1992, Qantas has acquired own domestic airline nationally. In 1992, Oneworld alliance has been co-founded by Qantas with American airline. In the 2004, Qantas owned a minority stake and expanded into the airline market of Asian budget. Now Qantas is running internationally both in Australia and outside Australia such as New Zealand (Freed 2015).
As per management system of Qantas, it made a profit around $1.52 billion in the fiscal year of 2015. Qantas has 28,622 people as its employees in Australia. Qantas makes every year turnover around $15.8166 million with having 79.1% of passenger load factors. Qantas issues dividend and shares every year by which it makes a great profit from shareholders. The company also follows the concept of share buyback and since the last 18 years, Qantas has paid back around $1.5 billion to shareholders (Lucarelli 2014).
In 2011, Qantas has introduced the concept of Qantas Industrial Dispute which is a series of dispute between Qantas airline of Australia and a number of trade unions between March 2011 and beginning of 2012. When Qantas and trade unions commenced about the bargaining for new enterprise agreement, the concept of Qantas Industrial Dispute came to the effect. Over the past 16 years, the Australian airline industry has incorporated vital changes in its management environment. Qantas becomes more successful after doing these environment changes in Australian industry. Though Qantas is running well and making more profit every year, it has faced a great loss in the year 2012. The company suffered losses of around $245 million because of high fuel rate, industrial disputes and competition within the industry in Australia. After facing losses, Qantas in March 2012, has incorporated with Jet-star Hong Kong and China Eastern Airlines Corporation. This loss affects the industry very much because it was the first loss of Qantas. Then Qantas has invested its 50% of shares to the Australia’s biggest road freight company ‘Star Track’ to make more profit within the industry and to run the company successfully in Australia as well as outside Australia (Lück and Gross 2013).
Qantas Industrial Dispute
There are different models of Qantas in Australia and outside Australia such as New Zealand. Nowadays, the group of Qantas has a set of 10 group policies which indicates the business principles of non-negotiable as well as highlights the minimum expected standard across the range areas of governance where the necessity of compliance is very much needed. These models and groups are conduct code and ethics, safety and health policy, policy of legal matters, policy of finance, policy of execution and contracts review, policy of environment, policy of Information Technology, policy of security, risk management policy and the policy of business Resilience (Ashwini Nand, Singh and Power 2013).
Qantas follows the model of code of ethics conduct to maintain stability within the industry and to manage the whole strategic system of the company in Australia. Qantas must see about the health policy and safety of passengers within the industry. Passenger’s safety is very much needed because any strategic event can happen at any time. Qantas also maintains some legal matters within the industry to provide better services to passengers. There is also some fundamental policy of finance because the industry depends and run only because of sufficient capital within the industry. If there is not sufficient capital, Qantas cannot run properly and it may suffer from loss. Qantas also maintains the policy of contracts and execution review within the industry. Qantas must have to see the environmental policy within the industry. Qantas also set up some technological strategy within the industry and for the welfare of passengers. The company also involved some risk management theory because at any time any strategic event can be happened within the industry (Lei and Fu 2014).
According to modern theory, Qantas is running well in today’s world and it is the 3rd largest airline in the world. It increases its profit every year and has more turnovers within the industry. Qantas makes every year turnover around $15.8166 million with having 79.1% of passenger load factors. , it made a profit of around $1.52 billion in the fiscal year of 2015. However, Qantas is still growing well in Australia and also in New Zealand because it runs into the global industry. As Qantas has more turnovers, it increases its technology every year and also planning for some future forecasting in Australia. In order to achieve the goals, it needs to provide better facility to people who travel with Qantas airline. It needs to maintain the airline industry specifically to get more people as its passengers within whole Australia and outside country. This theory of Qantas explains that it is running well and creating some beneficial opportunities for its passengers who travel with Qantas airline (Pearson and Merkert 2014).
Issues of Qantas in New Zealand
Issues of Qantas in New Zealand: One of the biggest brands of Qantas is situated in New Zealand where the industry is running well as per the instruction of Australia headquarter of Qantas. Though the industry is running well in New Zealand, it has some critical issue within the country which affects the airline very much. These issues are as follows;
Lack of creation opportunity: There is lack of creation of creation of employment opportunity and the employment system of the industry in New Zealand is not so developed. The country also has some lack of positioning by which every passenger cannot afford travelling with Qantas in New Zealand. The manager needs to maintain some creation opportunities and have to solve the lacking problem of positioning within the industry (Lyon and Francis 2016).
Lack of proper utilization: The manager must see the issue of Qantas in New Zealand. In New Zealand, Qantas has some lack of proper utilization by which it cannot get more passengers for services. These issues are must be avoided by the manager of Qantas airline. In order to solve this issue, manager needs to take some critical steps within the industry (Gillen 2016).
Lack of creativity: Qantas in New Zealand also has some creativity issues. Lack of creativity refers to the crisis of latest technology of Qantas by which it may suffer from losses. The manager needs to establish some latest technology to provide better services and to increase the margin of profit in New Zealand (Hazledine 2016).
Lack of managerial tools: Qantas airline has some issue of managerial tools because management system is not so developed of Qantas in New Zealand. As a manager, the issue has to solve as soon as possible because it is not getting more passengers by having the issue of managerial tools and techniques in New Zealand (Rowcroft 2014).
From the above discussion of Qantas in Australia as well as in New Zealand it has been recommended that the industry is running well in both the countries. However, it has some critical issue in New Zealand which has to be solved by the manager to run business as per people choice. It has cleared from the above discussion that Qantas has more turnover and makes more profit every year. Though it increases its profit margin every year, it has some legal issues in New Zealand. These issues have to solve by the manager of the company. These issues are affecting the industry and also impact people of New Zealand. Because of these issues, the airways are not getting more customers. People are not feeling safe to travel with Qantas in New Zealand because of these issues. The manager needs to take some legal steps to avoid the issue of Qantas airline. The manager is taking some fundamental steps to solve these lacking problem from New Zealand. The industry is well running in Australia and outside country and doing business both domestically and internationally. In order to maintain business also in New Zealand, Headquarter of Qantas which is in Australia has to provide better solution to the industry of New Zealand. In coming days, the issue will be solved consistently and will much grow in all over the countries. Overall performance of the industry is running well into worldwide.
References
Ashwini Nand, A., Singh, P.J. and Power, D., 2013. Testing an integrated model of operations capabilities: an empirical study of Australian airlines. International Journal of Operations & Production Management, 33(7), pp.887-911.
Ashwini Nand, A., Singh, P.J. and Power, D., 2013. Testing an integrated model of operations capabilities: an empirical study of Australian airlines. International Journal of Operations & Production Management, 33(7), pp.887-911.
Bamber, G.J., 2015. Low-cost airlines’ product and labor market strategic choices: Australian perspectives. Members-only Library.
Freed, J., 2015. Air New Zealand reveals plans to fight threat from Qantas.
Gillen, D. and Hazledine, T., 2016. Pricing of Regional Airline Services in Australia and New Zealand, 2011–2015. Economic Papers: A journal of applied economics and policy, 35(2), pp.87-98.
Hayman, R.M., McDonald, G., de C Baker, N.J., Mitchell, E.A. and Dalziel, S.R., 2014. Infant suffocation in place of sleep: New Zealand national data 2002–2009. Archives of disease in childhood, pp.archdischild-2014.
Homsombat, W., Lei, Z. and Fu, X., 2014. Competitive effects of the airlines-within-airlines strategy–Pricing and route entry patterns. Transportation Research Part E: Logistics and Transportation Review, 63, pp.1-16.
Lucarelli, G., 2014. The corporate strategy of Qantas Airways. A case study.
Lück, M. and Gross, S., 2013. Low cost carriers in Australia and New Zealand. The Low Cost Carrier Worldwide, pp.155-174.
Lyon, D. and Francis, G., 2016. Current Issues in Airport Management in New Zealand. Air Transport in the Asia Pacific, p.53.
Nolan, J., Ritchie, P. and Rowcroft, J., 2014. International Mergers and Acquisitions in the Airline Industry. The Economics of International Airline Transport (Advances in Airline Economics, Volume 4) Emerald Group Publishing Limited, 4, pp.127-150.
Pearson, J. and Merkert, R., 2014. Airlines-within-airlines: a business model moving East. Journal of Air Transport Management, 38, pp.21-26.
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