The essay focuses on the Qantas airlines. The main motto behind this easy is to identify the factors and the strategies which have helped the Qantas airlines to overcome the global financial crisis issues and became the leader again in the Australian market. “Qantas airways” has been formed in the year of 1920. This is the third oldest aviation company in the entire world. It is the first airline company in the Australian market which is even the largest airline in size of fleet, international destinations and international flights. At the initial level, the company has started its operations in the Queensland market and along with the time, the number of international destinations has been increased in the business. The main mission and vision of the company is to offer the airline services to each person and because of those low airlines services have also been started by the company (home, 2018). The company is focusing on improving the market share and become the leader at the international market place. In order to meet that goal, company has launched various new services and focuses on various factors which could help the business to meet that goal.
Queensland is mainly recognized for its renowned services such as the fare, security services, engineering services, proper preservation, equipped reliability and the customer services. These services are helping the business to improve the market share, customer satisfaction and the goodwill in the market (annual report, 2015).
At the initial level, the company was the first company in the airline industry in Australian market which has helped the company to grab the market share quickly and improve the performance in the market. Along with the time, various competitors have come into the market and have started affecting the market position and total turnover of the business (Qantas, 2018). But the strong strategies, leadership skills of the managers, balanced culture, customer responsiveness and lean operations of the company have helped it to manage the performance and success in the market.
The balanced culture of the business has attracted the customers towards the business as well as it has improved the skills and motivation of the internal staff of the business. Only employees of the business could deliver the quality to the customers and thus the business has focused to give proper direction, training and incentives to its employees. Along with that, the company has focuses on the needs and reactions of the customers towards the services and made the changes accordingly so that the customers could be satisfied with the services of the company and become loyal to the company (Anup, 2010).
Leadership has also ensured in the business that everyone in supported and enthused to work on the improved process, strategy, active team players and served customers. Lean operations of the business describe that the business has focused on providing the highest customer satisfaction to its customers so that the demand of company’s services could be improved (Home, 2018). These few drivers have helped the business to maintain the performance and success at initial level.
The financial milestone of the company has been studied from the year 1920 and it has been recognized that along with the time, the financial performance and position of the company is continuously improving. The revenues of the company have been improved in the year of 1938 at higher rate because of the first overseas flight from Darwin to Singapore. Further, in the year of 1953, Kangaroo route has been started by the company which improved the turnover and the financial performance at huge level.
From the year of 1985, various Boeing have been launched by the company which has helped the Qantas airways to improve the financial performance and net profit of the business (Qantas, 2018). In the year of 1993, Qantas and Australian airline had merged which helped the business to grab more market share and improve the profitability level. Further, along with the time, various activities and operations of the business has helped it to improve the financial performance and set a milestone in the aviation industry in Australian market and at international level (Home, 2018).
The study on the Qantas limited from the year of 1920 to the 20year of 2018 describes that the company has changed almost every strategy and cultural aspect of the business along with the time to manage the market share and the performance (Annual report, 2009). Various major changes have occurred in the business in past 98 years. In the year of 1947, the Australian government has bought all the shares if Qantas and it has helped the business to raise more funds to grab the international route. In the year of 1993, Qantas and Australian airline had merged which helped the business to grab more market share and improve the profitability level (Qantas, 2018).
In 1989, a world distance record has been set by the Qantas limited through flying its first Boeing from London to Sydney in 20 hours 9 minutes and 5 seconds. In 2004, the company has launched new domestic low cost airlines named by Jetstar. Further, in the year of 2007-08, the company has faced several global financial crises which have affected the financial performance and market share of the business at huge level.
However, the strong strategies and other key drivers of the business have helped it to improve the performance again and become the leader in the market. At the time of global financial crisis, the performance of the Qantas airways has been declined because of the various reasons and factors (Perriman, Ramsaran-Fowdar & Baguant, 2010). Mainly, the demand of the passengers services have been reduced ad because of that the financial performance of the business have been reduced. The entire Australian industry have been affected at great level because of the capital intensity, thin margin and high cost characteristic in order to operate the smaller aircrafts over the short distance with less passenger volume.
the global financial crisis have affected the number of tourist in the Australia which have also affected the number of passenger and the revenue of Qantas airways, the economical breakdown was also the reason behind the affected level. However, few instant changes have been done by the Qantas in its operations such as focus on the cost leadership strategy, heading in the oil process, currency fluctuations heading etc which have helped the business to recover the performance and again come back in the market with better strategies and services.
The Australian government has also made few changes into its policies and the rules to overcome the impact level of global financial crisis on the Australian companies. If the internal factors of the business are taken into the concern than it has been realized that earlier, the liquidity position of the company was quite lower and because of sudden financial crisis, the various subsidiary companies of Qantas airways have even reached to the point of insolvency (Cahill, 2010). But quick changes and the strategies of the business have helped it to manage the performance and the level of the company in the market. The borrowings level of the company was huge and because of that the insolvency fear was higher in the business. However, the aviation industry is vulnerable and because of that the insolvency fear level of the business has been reduced.
The Qantas has sold pre booking tickets in order to generate the revenue and reduce the debt obligation of the business so that the liquidity level could be managed and impact of financial crisis could be reduced. The Qantas has also reduced the number of employees n order to cut the cost of the company and manage the profitability level, Along with hat, the financial loon has affected the profit level for the years. Though few of the researcher have argues that the Qantas is too big to fall. The strategies goodwill and the international market share have helped the business at a huge level to recover.
Bateman, (2009) has argued that it was never a big threat for the Qantas airways. The liquidity level could be managed by the Qantas at any time because of its pre selling tickets and the great goodwill in the market. The internal policies of the company are quite strong and flexible that such crisis could not lead to the company towards the insolvency. The major strength of the Qantas was its market share and the strong position in the market. The margin of Qantas was not that much great in that financial crisis time, but it was better than the other companies in the industry. The diversification strategy of Qantas limited has also helped t to manage the performance and position at the time of global financial crisis.
Berg (2009) has further joined and said that the lean operations and the better leadership strategy of the business have helped the business at huge level to manage the position in the GFC. At the time of global financial crisis, Qantas has announced that $ 2 billion cost cutting would be done by the business for net 3 years to manage the profitability level and the market position; various internal and external changes have been done by the business at that time to reduce the cost level and manage the performance of the business.
Further, Brigden, (2010) has argued and said that the global financial crisis has affected all the industries and Australian companies at huge level. No matter how much market share they had the financial crisis lead to each of the comapny and bank to the insolvency level. In case of Lehman brothers, it has been found that even the position of the company was strong in the markets; still, the company has been insolvent and didn’t come back in the market again.
Latemore, (2013) has also added that if the carbon tax rate has not been reduced by the government and the oil process have not been reduced in the market than it could be tough task for the Qantas to come back. The end of the domestic war has also helped the Qantas to come back soon in the market with strong position and better financial performance level. The international competition of the business was also lower which has improved the position of the business and helped it to come back from the financial crisis.
On the basis of the study on Qantas airways from 1920 to 2018, it has been recognized that various positive and significant changes have taken place in the business which has improved the market share, performance, revenue, turnover, goodwill etc of the business at domestic as well as international market. Along with that, it has been realized that the global financial crisis, 2007-08 have affected the overall position and financial and non financial performance of the business at huge level (SMH, 2018).
Because of these changes and the impact, various new lessons have been learnt by the management of the company. From that time, the liquidity level of the company has been improved and the company has also altered the strategies and policies related to the financial position. Along with that, the currency rate hedging, oil price hedging, strategies to mitigate the sudden risk etc have been prepared by the business so that the sudden issues and crisis can’t affect the operations and performance at that much huge level (History extra, 2018).
The business has also come up with new policies which have helped to cut the extra cost of the business and improve the overall profitability level in the market. The lessons and the strategies made after those lessons have helped the business to cover up the loss and near future; it would help the Qantas airways to become the leader in the international market. The overall study brief that various lessens have been learnt by the company and new policies have been prepared accordingly to manage the overall performance and position in the market.
References:
Annual report. (2009). Qantas Airways limited. (online). Retrieved from: https://www.qantas.com.au/infodetail/about/investors/2009AnnualReport.pdf
Annual report. (2015). Qantas Airways limited. (online). Retrieved from: https://www.qantas.com.au/infodetail/about/investors/2015AnnualReport.pdf
Arup, C. (2010). The global financial crisis: learning from regulatory and governance studies. Law & Policy, 32(3), 363-381.
Bateman, H. (2009). Retirement incomes in Australia in the wake of the global financial crisis. UNSW Centre for Pension and Superannuation, Discussion Paper, 3(10).
Berg, C. (2009). Keeping up with Kevin: Kevin Rudd’s testosterone technocracy. Institute of Public Affairs Review: A Quarterly Review of Politics and Public Affairs, The, 61(1), 8.
Brigden, C. (2010). Unions and collective bargaining in 2009. Journal of Industrial Relations, 52(3), 321-334.
Cahill, D. (2010). ‘Actually existing neoliberalism’and the global economic crisis. Labour & Industry: a journal of the social and economic relations of work, 20(3), 298-316.
history extra. (2018). Financial Crisis explained. (online). Retrieved from: https://www.historyextra.com/period/modern/financial-crisis-crash-explained-facts-causes/
Home. (2018). Qantas Airways limited. (online). Retrieved from: https://www.qantas.com/in/en.html
Latemore, G. (2013). Restoring Trust in Two Australian Organizations: The Cases of Herron and Qantas. In Integrity in Organizations (pp. 119-145). Palgrave Macmillan, London.
Perriman, H. E., Ramsaran-Fowdar, R. R., & Baguant, P. (2010). The impact of the global financial crisis on consumer behaviour. The 2010 Annual London Business.
Qantas. (2018). Qantas through the years. (online). Retrieved from: https://www.qantas.com/travel/airlines/history-through-the-years/global/en
SMH. (2018). Five reasons Qantas is back in the black. (online). Retrieved from: https://www.smh.com.au/business/companies/the-five-reasons-qantas-is-back-in-the-black-20150224-13nbws.html
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