Managing The Legal Environment For Airline Unites Australia

Qantas Airways Ltd

Describe about the Managing the Legal Environment for Airline Unites Australia.

Qantas Airways Ltd. has been a key element for the development of Australian and international aviation. It is presently among the top most domestic airlines of Australia and also a chief in the Asia-Pacific area. The airline unites Australia to 81 destinations in 40 other countries world over & functions the wide domestic services both in Australia and New Zealand.

It also upholds a various treaties and code share agreements. The organization also is a member of the world’s number one universal airline coalition headed by American Airlines and British Airways plc. These two airlines are among the largest shareholders of Qantas holding 18 percent of interest.

In this report, a brief about the Qantas Airways Ltd will be provided and also the laws, risks and strategies which are adopted by the airlines will be talked about. But at the end of the report, the legal risk and recommendations for avoiding such risks and losses will be given.[1]

Qantas Airways Ltd is presently the world’s second oldest airlines. Established in the outback of Queensland in 1920, it is also Australia’s largest domestic & international Airline.[2] The organization includes Qantas Domestic, Qantas International, Jetstar and Qantas Loyalty.[3]It also includes some of the subsidiary corporations and strategic investments.[4]The group employs more than 30,000 employees and has also been listed on the Australian Stock Exchange (ASX).[5] [6]Registered originally as the Queensland and Northern Territory Aerial Services Limited (QANTAS), is currently acknowledged as one of the world’s leading long distance carriers, having forge services from Australia to North America and Europe. The Qantas group presently engages approximately 32,500 individuals and offers services across a network in 44 countries in Australia, Asia etc.[7]

The organization has built a reputation for excellence in security, equipped consistency, business and maintenance, and client service. The main business of the Qantas Group today is the transportation of customers using two complementary airline brands- Qantas and Jetstar. They also manage additional businesses including other airlines, and businesses in specialized markets such as Q Catering.

The brand of the airline functions in local, worldwide and domestic services. The broad portfolio of the airline of its subsidiary businesses ranges from Qantas Freight Enterprises to Qantas Frequent Flyer.[8]

Today the Qantas group is regarded as the well-built, globally spirited airline industry, helping Australia and connecting the citizens to the world. Some commitments have been shared by the airlines in order to maintain high standard of ethics, compliance with laws, and reflection of their beliefs in all their efforts.[9]

Legal Governance

The organization chains a promise made for obedience with all the legal provisions and laws and maximum level of principles and honesty; and

A zero tolerance approach to offense and bribery related with the operation of the organization.

Obedience with the regulations means examining the strength of ruling and management of business. It has been recognized by the organization, in various matters, that there could be doubt about which rules & policies will be applied when the business will be conducted as there may be hardships. In such situations, advice can be taken from the4 managers or the legal department of the organization to ensure the compliance of rules and their understanding.

In order to avoid any legal governance, management and relationship issues that affect the organization as a whole the organization aims to grant a fair and transparent recruitment process. Under this process, the organization focuses on recruiting the right person into a right position. The organization aims to develop a work environment that will support the members of the organization and enables them to do their work in the best manner. The potential and professional development of the employees were also encouraged and supported by the organization. It has been done in the course of recognizing ability; upholding specialized qualification and sustaining knowledge and growth.

The members are also remunerated appropriately and rewarded for their performance by the organization. Qantas is an equivalent prospect owner. Equal employment opportunity refers to the service practices that were planned to facilitate accessible and budding workers to struggle on their virtues for service. In this airline, the basic aim was to foster a place of work where individuals value and abide the privileges and divergence of other people. A workplace can be made an uncomfortable and unpleasant place of work by threat of harassment. Likewise, bullying or any form of job-related violence should not be accepted. It may symbolize a violation of a relevant professional health and safety laws. So, individuals should be treated with respect.

The most recent and inexpensively crippling issue that has prejudiced the airlines industry is the Global Financial Crisis. So, as a shortest result of this the aviation industry particularly has also seen an important downturn. This presents a possible flaws or hazards for the organization which may appear with a feeling that the best cost for the quality service is not sufficient to get the consumers to fly with the same.

Legislations

The failure too comply with the legislations would give effect to negated acts[10]. Qantas have been pleaded guilty and was asked by the court to pay $US61 million in fines for its part in fixing surcharges related with fuel for transporting cargo on routes.[11]

In another case Qantas was ordered by the court to pay $20 million for the price fixing act done by it. [12]So if these types of acts would be defeated by the industry then no such cases would be filed against an organization. Therefore, the legislations should be followed as specified under acts.

Competition Act

The employees of the Organization were accountable for accepting how their duties under the Competition Laws affect their transactions with clientele, suppliers, and competitors. It has been clearly stated that all the members of the organization or any person who is representing the organization have to abide by with Australian and any local Competition Laws.[13] It means that the members irrespective of the position and location have to conform to the Australian Competition Law. Even though, the law sets a high standard than would otherwise apply to the local areas.

The members should also abide by all the relevant anti-bribery laws. This means that the employees must not indulge in any act of either offering, taking or receiving bribes from others. The other people may include the government officials, consumers or suppliers. Any behavior that develops an assumption of bribery should also be evaded. No adverse effect would be suffered by the members who refuse to take bribes.

The employees should not either in a direct way or in an indirect way have equity interests in, or an important beneficial relation with, any business or person. The individual may be the person who struggles with or was the dealer to the Qantas Group without prior permission.

The Australian Corporations Act as well as all the other regulations of the countries in which the organization functions contains rules which restrict a person in control of Material Non- Public Data. The data concerning to the organization from trading in any way in the securities of that organization.

For the members, this lawful obligation read out that they must not buy or sell securities while in custody of material Non-Public Data. It applies to all the listed corporations, not just to Qantas and Its employees.

The employees of the organization also have an option of lifting concerns which they feel are of legitimate concern to the members. For example, where the members are afraid of any probable unfavorable impact as a consequence of raising an anxiety, the Qantas Whistleblower Policy can help with shielding their character.

All the business organizations come across a variety of exterior and inside issues which makes it vague. It also puts forward a question that whether the organization would be able to achieve its objectives or not. The effect that ambiguity has on achieving the goals of the corporations has been regarded as Risk.

By proactively appreciating and managing threat a greater amount of certainty can be provided with safety of the employees.

The working staff of Qantas manages threat when they make certain decisions and then they take actions accordingly. The corporation provides the employees with the tools which they would need to help themselves in discovering, understanding and replying to the threat in the most significant way. Training is also being provided to the members of the organization so that the organization of threat would become a usual part of all they do to assist in inculcating a threat organization civilization.

It has been affirmed that the confirmation and evaluation of the threat management performance of the organization was important in order to help them to continue in delivering as per their policy and dream. It has been significant to allow precise and appropriate threat related data which should be confined and shared all over Qantas Group.

While the Corporation was dedicated to the highest principles of safety, danger and safety organization, it was recognized that the aviation industry functions in an unstable atmosphere subject to interior and exterior effect.

For sustaining such an atmosphere and for growing consistently the ability and agility of the organization should respond to modifications. Qantas put together the business flexible capabilities into our danger organization structure. In the event of a main occurrence or disaster that has the probable to force the organization. A partner of the airlines or the broader society, business flexibility capabilities enables the corporation to work jointly and take leadership role in:

Guarantee security and wellbeing of the employees of the Group, consumers and wider society;

Protection of brand of the Group; and

Using critical services

There are some risks which every organization includes such as:

Competitive strength is one of the risks which can be developed if the market capacity development becomes more than the underlying demand.

Fuel and Foreign Exchange volatility risks are another major area of risk detection as they were observed as the intrinsic part of the processes of an airline industry.

The connected risk of transformation comprises of the industrial actions in relation to the organization’s collective agreements with its employees.

Being safe while engaging in any practice is one of the crucial risk factors. Though, by way of active participation and commitment of all the employees the organization strives to protect the health & security of the members with society as whole.

A safe and secured working culture should be developed, so that people feel safe to work. All the members should understand that safety is their responsibility. Therefore, the Qantas group inculcates a robust safety system which protects the consumers and assets of the organization.

Similarly, crime and corruption has an important negative effect on our brand, consumers, and assets of the organization.

Crime and Corruption includes fraud. It focuses on eliminating any type of criminal activity which takes place against the business of the organization by its members or stakeholders. Corporation also had a “zero tolerance” strategy in connection with crime and corruption.

Competition Law is a regulatory risk associated with airlines which the airlines of Australia needs to manage.[14]

In the case of Qantas Airways  Ltd v Arnott [2013] NSWWCCPD 35 (17 June 2013)it was upheld by the court that the arbitrator was correct to say that the respondent has to be paid  the compensation as the respondent was in the course of his employment when he got injured. The physical attack occurred during an interval within an overall time the respondent was at a specific position with the support of his manager. So, therefore, the appellant i.e. Qantas Airways Limited has to pay compensation to the respondent.[15]

Similar judgment was given in another case of Da Ros v Qantas Airways Ltd [2010] NSWCA 89 that the employees would be paid off by the employer as the injury which has been caused to the employer was caused when he was at the workplace. The respondent was at the place where the employer asked him to be to work as per the requirement. So, now it is the duty of the employer to pay off the employees in the best manner he cans.[16]

It was held in the matter of Commissioner of Taxation v. Qantas Airways Ltd [2014] FCAFC 168 that the provision of the car parking spaces at each airport parking station gave rise to ‘car parking fringe benefits’, allowing the Commissioner’s appeal in respect of parking stations of Airport and dismissing the petition of the Taxpayer in respect of the other airport parking stations.[17]

The operations of the organization were subjected to the range of Commonwealth, State and international ecological laws. The Qantas Group is connected to the environmental sustainability with high standards for the performance of ecology.[18]

The world currently is sharpening its focus on sustainability and environmental awareness. And as it does, people also are making efforts to address local. National and international ecological challenges even further.[19]

Qantas Future Planet has been its flagship program for its sustainability, ecological and social initiative. It has been made up of six major parts of focus; it includes parts as broad as aircraft and fuel efficiency, to sustainable products, and in flight programs.[20]

 The strength of the future planet was built on one thing i.e. a common belief among its employees, partners and consumers in the interest f building a profitable, sustainable and environmentally conscious airline.[21]

With this the aim of the organization was to make real, measureable changes wherever required. And the organization won’t be restricting soon. As, climate change becomes an even bigger threat, they were committed to become a chief in sustainability, both for aviation industry and the corporate world at large.

The Qantas Group believes that change in climate has been a shared global dispute for the governments, businesses and persons. The organization has been dedicated to play their part in the response of the aviation industry. They recognize and sustain the long-standing technical agreement that individual action has accelerated climate transformation and the rising international heat has important ecological, financial and societal effect.

At the same time, the organization makes an acknowledgement that they recognize their own effect on atmosphere and that it has been functioning for many years to raise fuel effectiveness. Therefore, emission could be reduced by way of spending in original aircrafts, discovering more capable ways of working, and functioning with producers, controller and the trade associates.

The employees have an obligation to be environmentally responsible. They have an accountability to consistently decrease the ecological marks of the trade of the organization. The same can be achieved by managing the effects and threats to the environment, while ensuring that relevant laws have been complied with. Qantas on a daily basis review and set the environmental strategy of the business to drive out consistent improvement in the business.

The long term strategy of the business organization was based upon:

Healthy measurement and apparent coverage of the ecological footsteps;

Speculation in advanced technologies and fuel proficient aircrafts;

Communication of leading fuels and administration of airspace actions which symbolizes the best practices and roles of guidance; and

Active participation in the efforts of the industry to build up sustainable aviation fuel

Support of the employees of the organization is needed to develop environmental awareness, capability and contribution among the organization. Importantly, the members of the organization must take accountability for making sure that all the rules and regulations have been complied with thoroughly. Initiatives were also taken to lead any ecological development project as well as report of any ecological vulnerability or incident.

Qantas Airways also boost up all its employees and shareholders to believe how they can minimize the effect on surroundings. Center of attention would be granted to optimize petroleum, power and consume water, reduce misuse and improve sustainable performances.

Similarly, any collapse to adapt an incorporated environmental policy could lead to corrosion in the character of the organization and situational failure of capital. An augmented focus on business accountability and an available secretion diminution aim which would assist in delivering the refocused policy.

In the globalized world, ventures have extended their businesses into other countries and became international organizations. The organization has been the oldest and the largest airline which also takes part in intercontinental activities.

The basic aim of the strategies of the organizations is as follows:

To analyze the corporation’s data;

To analyze the interior and exterior circumstances where the organization operates; and

Examination of wealth and ability of the organization

While determining the external forces which had an effect on the domestic airlines industry it was seen that there were majorly four areas which were needed to be discussed. The four factors were; Political, environmental, social and technological. In discussing these areas in the report the strengths and weaknesses would be determined which arise from Qantas as a result.

For the organization this might be observed as danger as there were going to be new market players in the market as it has unlocked the doors for the low-cost transporters to enter. Still, it may also result in a chance for the organization to distinguish itself from the rest of the domestic airlines and be the only one contributing a best service in the aviation industry.

Qantas Airline also had various strengths. For example, the major area of strength of Qantas is that the airline has access to its profitable domestic routes that accounts for majority of its profitability. Currently, majority of the routes are served in Qantas which allows it in sustaining the leadership position in the industry. Also it has inculcated its reputation within the industry if airlines and Aviation sector as whole, as it is the flag line carrier if Australia.

Qantas is the world largest long distance airlines and it is constantly expanding its network by forming alliances with other major airways across the world. Thus, the main strength point from the discussion could be considered as the monopoly as sustained by the organization in terms if accessibility to the profitable domestic routes.

Another aspect of this analysis is weakness and it is internal to an organization. The organization is also suffering from certain kinds of weaknesses and major weakness o the airlines is that the airline does not have strong features that would allow it to sustain even though its profitable routes are being under the threat of competition.[22]

 The strategy of the organization was to construct the organization’s aggressive returns and creates long-term worth of the shareholders by increasing the power of their incorporated assortment of industries and brands.

The width of the group model with the organization, Jetstar and Loyalty of Qantas permits the organization to supply the widest range of consumers. It offers a great flexibility to the outer vitality, and allows the organization to follow development prospects in a range of markets.

Qantas have been motivating a constant change in their cost base and spirited place through the $2Billion Qantas Transformation program. It lays down basics for a sustainable development within a restricted monetary structure, tailoring services to the consumer’s need and joining their citizens behind shared objectives for the proposed expectations.

Both Qantas and Jetstar held a 63 percent aptitude share of the Australian domestic market, but an 86 percent earning share dazzling the achievement of their dual brand policy.

In the international market, the group sustained to strengthen its spirited situation and global scale through transformation of cost base, regeneration of services, natural development and planned partnerships.

After the impulsive period of 2009-2014, when the procedure of rotating around Qantas International began, market circumstances eased. Today the organization is at a position to construct a sustainable, long-lasting benefit from their sturdy habitat project.

In 2014-2015 the organization initiated the A380 on the Dallas worth route, raised the route from a Boeing 747. It also enlarged the capability from Los Angeles to Santiago. Announced plans to two times capability to Tokyo, including the beginning of new routes.

Qantas loyalties generated in an organization has been secured &stable and produces non-cyclical returns for the Group and also intensify the consumer loyalty. It was further aiming at innovation which led a development in 2015-2016 and afar as it continued to reinforce the core common circular business and developed into new areas.

The organizations societal plan champion the strength of Australia by 3 different leaders:

Long ranking commitments to the passage of settlement

Fostering and showing the best of Australia.

Making an appeal to the employees and consumers

But the organization’s key Strategies pillars for the year 2015-2018 included:

Providing long term indigenous occupation

Increasing educational competencies

Making an Australian Consumer understanding

Sustaining Aboriginal financial expansion

Primary agreements of settlement[23]

In the viable atmosphere, business houses have to make aggressive improvement or they would die. It has been stated that a firm could attain a high rate of earnings over a challenger in two different ways:

Making available an indistinguishable manufactured good or service at a low price, or grant a special product or service that would be distinguished with others in order to convince the consumer to give a finest cost that exceeds the extra price of the segregation.

Conclusion &Recommendations

It has been highly recommended that “Strategy is win”. Business houses with efficient strategies and successful completion would produce rewards in the viable atmosphere. Various other strategic methods have been discussed in analyzing the interior and exterior perspective of the organization. The report has recognized the collective strategies also. On the basis of these strategies it has been suggested that the organization should produce a spirited return by two strategies such as cost leadership and discrimination.

Hence, the organization is supposed to make an arrangement to combine its business actions with the mediators and sometimes the firm has too developed a cartel with those agents to reduce its contenders. The organization would also offer endorsement to decrease free accommodations in flights.

It has been reputable that the organization is facing straight rivalry from the new market candidates as well as dangers from its own growth- Jetstar. It also has lost a number of market shares over time.

Nevertheless, the danger of the original competitors has exaggerated the organization and their new prospects which were accessible and have encouraged the airlines to think out of their area of work.

So, such strategies should be made so that the customers will be benefited with no loss and also by the cases which were made against the organization it can be sad that the organization should take proper care of its employees so that they would not get any type of injury or harm.

The airlines should also provide some extra necessities to the customers with a quality service. A happy customer is a thing which can make all the efforts successful.

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