Marketing and Management The Qantas Airline

Question: Descrbe about the Marketing and Management for The Qantas Airline. Answer: Introduction: The assignment assesses the trajectory of the Qantas airline that witnesses heavy financial losses due to a grave situation. In August 2011, Qantas witnessed a disputed terrain that culminated in international division. The experts believe that Qantas domestic, Qantas Link and other variants of Qantas gave an excellent performance in the recent phase. However, Qantas International faced escalating losses that amounted to $200 million. The Qantas airline faced severe industrial crises in the recent time. At the other end of the spectrum, the unions could not accept the reforms that the Qantas airline began to deliberate (Adler and Mantin 2015). The unions maintained that the Qantas airline is gradually drifting the international operation in a different location. The management made such arrangement to identify cheap labour and other resources. At the same time, the unions comprehended the graveness of the situation. They claim that the airline transgressed the deliberation of the 199 2 Qantas Sales Act, which specifies that the carriers base should remain within Australia. The Qantas refutes to provide improved work and payment balance (Ancell 2016). The organizations like Australian and International Pilots Association (AIPA) attempted to adopt industrial action against the particular airline. The conflict assumed a rigorous character, centering the issue. Issues: The primary issue that was faced by the organization was management issues. There were issues related to leadership, human resource management and even in the decision making abilities of the operation of the business. The step taken for privatization of Australian national airline also proved to be challenging for the organization. In fact, the Airline was the National Pride for Australia. It was observed that with due to financial crisis, many Airlines faced great difficulties in coping up with the situation. In case, if the situations were not tackled properly, it would have caused harm to the pride of the Nation. The federal government also refused to allow more than 49% of the foreign ownership. It was due to the Global crisis that the Airline had to suffer (Mac 2014). In the year 2011, Qantas released a watershed media release but with frequent losses, it was observed that the organization faced loss of more than $200 million and in fact, without any particular changes, these c hanges were expected to continue. Other issues include, the factors related to the competition with other Airlines of the Nation. It has to be understood that in the recent situation, apart from providing services to the customers, it is also important to keep a good relationship with the customers as well (Brigden 2012). There is no doubt that the Airline treats their internal stakeholders rightly but they are also required to pay considerable attention in understanding the needs of the customer and provide them with the best quality services. If the Airline will be able to do so, there is no doubt that the Airline as a commercial vehicle will prosper in its industry. Solution: It has to be understood that the Airlines have a good reputation in terms of customer servicing. There have been many instances when the Airline had faced drastic situation but they have managed to overcome the situation and carry out a smooth operation in their business. In order to overcome the challenges faced by the Airline, it is expected to come up with a strong management team (Mac 2014). It has to be understood that situations might arise where an organization has to face with lots of challenges but, the management team has to be efficient enough to fight against any such situations to overcome the issues. It is important to carry out a plan and then work according to the plan to overcome the challenges and issues faced by the particular organization (Vasigh, Fleming and Humphreys 2014). It has been found that the pilots of the Airlines are treated very well and the Airline also tries to keep a healthy relationship with the media as well. It is expected that the Airline shall keep a good bonding with the media and the people of the Nation (Vasigh, Fleming and Humphreys 2014). These factors are bound to create a positive impact on the reputation and the image of the organization that shall automatically improve the image of the organization. Conclusion: Hence, to deduce, the assignment analyses a case study, related to the situation of Qantas Airline Company. The assignment operates at the interstices of a few key questions that have been addressed in the light of international laws and management. The airline countenanced the problem of financial losses that creates ruckus in the particular domain (Adler 2015). The airline refused to strike a balance between working and payment balance. In fact, the most important organization, International Pilots Associations (AIPA) aimed to take industrial action against the airline. In retaliation to the disputed industrial action, CEO Alan Joyce dismissed all the workers and adjourned all the domestic and foreign flights for more than two days at the end of October 2011. However, he gave no such vestige of domestic flight cancellation in the annual gathering of the Qantas flight. While shutting down the operation of the airline, the CEO emphasized that industrial action caused economic disloca tions. The Qantas airline had to lose $68 million and it cost another lump sum $30 million for two consecutive weeks. Consequently, 68,000 passengers face the hard repercussions, in a sense they remained in a deplorable situation. Appendix: Why do you think other airlines in Australia (for example, Virgin) dont seem to experience the same degree of industrial conflict that Qantas does? In August 2011, Qantas witnessed a disputed terrain that culminated in international division. The experts believe that Qantas domestic, Qantas Link and other variants of Qantas gave an excellent performance in the recent phase (Bailey and Peetz 2015). However, Qantas International faced escalating losses that amounted to $200 million. At the same time, the losses persisted for a long time. Due to lack of revisions, changes occurred at a slow pace. Therefore, the airline wanted to transmute the financial losses around the international divide by contributing towards an Asian-based airline. Consequently, the Australian international travellers would move from here and there within the Asian circuit. It also launched an onslaught on the Australian Licensed Aircraft Engineers Association and other allied organizations. It said that these two unions attempted to abolish the changes that required. These significant unions are struggling to cease changes at Qantas. The unions maintain that they keep obsolete work culture and ineffective work practices at bay. At the same time, they want to increase the scale of prices and benefits. Such claims have a proper base and it maintained that the Qantas pilots and the employees are the most influential and best paid in the world. Venerated aviation expert Peter Harbison opined that Qantas international pilots have the stature of high-paid pilots in Australia. They are paid on an hour-work basis that is the best in the world. The studies reveal that the employees of the Qantas airlines are relatively better paid than the rival counterpart Virgin airline. The engineers of the Qantas airline receive good payment than any other airlines in Australia. Therefore, the Qantas airline faced severe industrial crises in the recent time. At the other end of the spectrum, the unions could not accept the reforms that the Qantas airline began to deliberate. The unions maintained that the Qantas airline is gradually d rifting the international operation in a different location. The management made such arrangement to identify cheap labour and other resources. At the same time, the unions comprehended the graveness of the situation. They claim that the airline transgressed the deliberation of the 1992 Qantas Sales Act, which specifies that the carriers base should remain within Australia. The Qantas refutes to provide improved work and payment balance. The organizations like Australian and International Pilots Association (AIPA) attempted to adopt industrial action against the particular airline. The conflict assumed a rigorous character, centring the issue (Sampson 2012). Could you see any evidence of escalation of commitment in the decision and the reaction to the grounding of the airline in 2011? Is Alan Joyce an individual or group decision-maker? The Qantas countenanced a curious problem in the recent time. The airline refused to strike a balance between working and payment balance. In fact, the most important organization, International Pilots Associations (AIPA) aimed to take industrial action against the airline. In retaliation to the disputed industrial action, CEO Alan Joyce dismissed all the workers and adjourned all the domestic and foreign flights for more than two days at the end of October 2011. However, he gave no such vestige of domestic flight cancellation in the annual gathering of the Qantas flight. While shutting down the operation of the airline, the CEO emphasized that industrial action caused economic dislocations. The Qantas airline had to lose $68 million and it cost another lump sum $30 million for two consecutive weeks. Consequently, 68,000 passengers face the hard repercussions, in a sense they remained in a deplorable situation (Park 2013). The CEO of the airline Alan Joyce is not the individual decision-maker in the time. At the same time, the federal government made an appeal to Fair Work Australia (FWA) that interfered in the conflict between Qantas management and its employees. The CEO urged the body to intervene in the matter and seek an easy resolution (Vasigh et al. 2014). On 31 October 2011, FWA emphasised that the tussle between Qantas and the unions should come to a virtual close. The organization gave the two parties three weeks to tide over the crises and solve the matter. They wanted the parties to come to an easy agreement. The experts claim that if the matter were not solved in course of time, then the arbitration would guide the matter. The two parties worked to accomplish the case and after the completion of two hectic days, Qantas made an apology to the customers and other allied members. At the same time, the Qantas offered free flight services to the discontented passengers and continued in the marke t (Cumming and Fleming 2012). Is there any evidence of SWOT analysis in this case? The case reveals a SWOT analysis for the particular airline company. The SWOT analysis explains the assessment of inherent strength and weakness of the company. At the same time, it also evaluates the potential threat faced by the company. The case study reveals that the Qantas airline faced severe industrial crises in the recent time (Floyd and Spry 2013). At the other end of the spectrum, the unions could not accept the reforms that the Qantas airline began to deliberate. The unions maintained that the Qantas airline is gradually drifting the international operation in a different location. The management made such arrangement to identify cheap labour and other resources. At the same time, the unions comprehended the graveness of the situation. They claim that the airline transgressed the deliberation of the 1992 Qantas Sales Act, which specifies that the carriers base should remain within Australia (Brigden 2012). What type of change is evident in the case developmental, incremental or transformational? Transformational change is inevitable for the premier international airline, the Qantas airline. The union parties accused the flight of many things (Jayasuriya and Cannon 2015). It is indispensable for the Qantas airline to steer a course between effective work culture and reasonable payment. The flight began to charge soaring fares for the foreign and domestic trips around the globe. Therefore, the flight needed a transformational revision that would help the maintenance of the stature of the premier flight (Budd and Ison 2015). Is Alan Joyce a transactional or transformational leader? The CEO of the premier airline company deliberated on the transactional leadership. By definition, transactional leadership highlights the paradigm of managerial leadership. The managerial leadership emphasizes on supervision, organization and the quality group performance. Transactional leadership is a style of leadership in which leaders propagate compliance by followers through the transfer of rewards and punishments. The CEO, Alan Joyce maintains the status of the transactional leadership. After the decision of the party unions, Alan Joyce (CEO) suspended the operation of the employees and made them apologize to the customers (Driver 2013). Was Alan Joyces decision to suddenly ground the airline ethical? In retaliation to the grave situation, Alan Joyce adopted certain that deemed unethical in the light of international law. The CEO of the company attempted to cease the operation of the flight for that particular period. Consequently, the customers had to face the worst of the situation. They remained stuck in the airport and demanded for the refund. However, such situation exacerbated tensions on both sides. Therefore, CEO failed to take ethical decision for the management of the organization. The decision actually led to the disadvantage of the customers, as they had to wait for a long time. Therefore, he had not taken decision on ethical grounds (Mac 2014). References: Adler, N. and Mantin, B., 2015. Economics of Transportation. Adler, N. and Mantin, B., 2015. Government and company contracts: The effect on service and prices in international airline markets.Economics of Transportation,4(3), pp.166-177. Ancell, D., 2016.Clipped Wings: Corporate social and environmental responsibility in the airline industry. Routledge. Bailey, J. and Peetz, D., 2015. Australian unions and collective bargaining in 2014.Journal of Industrial Relations,57(3), pp.401-421. Brigden, C., 2012. Unions and collective bargaining in 2011.Journal of Industrial Relations,54(3), pp.361-376. 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