How Qantas Was Affected By The Global Financial Crisis

1240 words - 5 pages

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 the weakness over other business, Opportunities are elements that the project could exploit to its advantage, and Threats are the trouble factors which will be caused.
Few of the aspects which should be taken care of during the GFC
a) Reduce spending on fuel hedging
b) Protect revenue from higher oil prices
c) Take advantage of fuel efficiencies
d) Reform airport regulation
e) Improve yield and revenue management practices
f) Improve the Qantas board
Body of the Report
First let’s talk about Strength of the company. One of the major strength of Qantas is there strong market position. Qantas margin were not that great but was better when compared to other industries. It had support from Australian government. Qantas followed diversified business of Qantas they operated different sector but all related to airlines. The other industries in which Qantas were involved were catering, baggage, handling and engineering. All these industries helped them to control supplier and aircraft maintenance cost. Qantas introduced one world management which included major airlines around the world; purpose was to help all companies for marketing, online ticketing and...

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