The Qantas Crisis



The Qantas Crisis

Introduction

Founded in Winton, Queensland in 1920, the world's second oldest airline, Qantas, is the chief domestic and international airline of Australia. Today it is acknowledged as worlds foremost extensive distance travellers, having services provided from Australia to North America and Europe. Offering services across single system straddling over 180 destinations in more than 40 countries throughout Australia, America, Asia and the Pacific, Africa, Europe and Middle East. Qantas Group at present employs approximately 32,500 people. Qantas and Jetstar are the two corresponding airline systems being used by the Qantas Group for transportation of passengers (Graham, 2005).

The Qantas Group works in collaboration with Australia Post in two in cooperated companies: the Australian Air Express, which is the local air cargo operator along with Star Track Express which is the national road cargo business. Domestically, 5600 flights are operated per week that serves nearly 60 city and district locations in entire states and mainland districts (Qantas with approximately 2400 flights; Qantas Link with 2000; and Jetstar with around 1200). In addition to that Jetstar also runs more than 150 domestic flights per week in New Zealand. Globally, more than 970 flights on every week are operated (Qantas leading 630 flights; and Jetstar with 340). The Qantas' network holds 182 destinations in over 44 different countries, including Australia as well as those served by code share partner airlines (Alamdari & Mason, 2006).

Analysis

Through the case study, we can analyze that Qantas management clearly demonstrates the classical management approach, combined with the behavioral business management approach as the company was moving from a phase of being transferred from a government firm to a public company. The Qantas management uses several management styles. They have adopted the contingency approach, in which they choose the best style to manage which befits the situation (Bieger & Wittmer, 2006).

The Australian airline Qantas had announced the immediate suspension of all domestic and international flights indefinitely. The momentous decision comes in light of the stalled negotiations between Qantas and its employees following a labor dispute of engineers, pilots, caterers and baggage handling. In the official statement made ??public by the company, it says that Qantas has confirmed that it would resume operations until an agreement is reached and that the planes have taken off in flight and still complete their journey, however, to the destination. The block covers 108 airplanes in 22 airports around the world. Furthermore, it was announced that the closure of the company will refuse to pay employees in Australian agitation (Highfield, 2005).

The unrest was the result of when the company announced a new plan to raise and relocation to reduce losses in the international market, which totaled about 200 million Australian dollars (about 150 million euros), while Qantas international flight bookings for November were down 10 percent over last year. The plan provides for the recovery of operations in Asia, where the market for Qantas in recent years has reduced by 25 percent, over the purchase of 110 Airbus A320 ...