Discuss about the Stakeholders and Competition in Migrants.
Qantas Airways, headquartered in Sydney, New South Wales is the most significant Australia airways and one of the oldest airways in the world having more than 140 fleets that reach into more than 40 destinations across the globe (Fuellhart & O’cnnor 2013, p.44). The airways funded by former war pilots named Wilmot Hudson Fysh and Paul McGinnes in 1920 as Queensland and Northern Territory Aerial Services Limited. The idea came up after bumping across territory that was car restricted and therefore thought of the need for air services in Australia(Kawaski 2017,p.13). With the financial support of glazier Fergus McMaster and the engineering know-how of Arthur Baird, the duo came up with an organization to transport mails and passengers.
QEA first mail and passengers flight was in 1922, from Charleville to Cloncurry Queensland, thereafter in 1924, former prime minister S M Bruce became the first person to fly in the QEAfor official use after the airway buying enclosed cabin to help passengers to operate without putting on goggles and helmet (Baker & Freestone 2012,). In the late 1920s.QEA began the process of building own aircraft in Longreach and after that started developing and improving the number of destinations that made the government buy the company in 1947 and named it as Australian Airways. However, the poor employee services forced the pilots to strike and go for mass resignation in the 1980s that pushed the government to sell it to Qantas.
Qantas is operating under airline industries. The airline industry is a system of transportation that moves people and goods from one place to another through the air. The airline industry has different characteristics such as full-service carrier, a low-cost carrier, and charter carrier.
A full-service carrier refers to an air transport company that was anciently created from the state-owned pennant transporter, through the marketplace deregulation procedure into an airline corporation (Mcdonnell 2015,p.381). A full-service airline company does not rely on collecting ancillary revenue apart from the actual airfare, thereby tends to offer free baggage allowance, drinks, meals and in-flight entertainments. Such companies also operate in both national and international level on both cargo and passengers. The full service has various advantages such as compensation in case of inconvenience caused by the company for example rebooked into another flight if the original one gets canceled. The service is cheap as most of the baggage, entertainments, drinks, and food are uncharged. The service also allows the purchase of tickets for destinations that are not directly connected to the departure destination: for example one is capable of flying from Singapore to US destinations via a broad range of hubs while using one ticket. However, if a client misses a target accidentally, then the company is capable of arranging for a flight to the correct destination with no extra charges.
A Low-cost carrier refers to airline services that tend to collect ancillary revenues for all of the services offered to maintain operating cost at the minimum. The low cost carries to offer cheaper tickets than other since charges depend on the distance, luggage, and basic requirements of the traveler (Fuellhart et al 2016, p.1254). The carriers are always first as they are a point to point and mainly within a specified region that results in few cancellations as opposed o the full-service, hence more cost-conscious than the full service. The low-cost carriers are always for economy class, and the tickets do not always contain the food, drink, and baggage charges making it to e more expensive. Example of low-cost carriers includes Ryan Air and Easy Jet.
A charter carrier refers to an airline company that operates flights beyond the standard timetable such as in lease arrangements with particular clients. Charter flights have obtained recognition as the main objectives are to convey holidaymakers to tourist points such as beach resorts, historic towns and any other place that does not have scheduled service. Examples of chartered airlines include Britannia Gmbh, Air Jet, and Virgin Sun, among others.
Qantas airline operations are divided into three groups: commercial, marketing, customer, and operations group(D’afonso & Nastasi 2014, p736). The commercial operations cover various destinations united states being the largest international market destination, Qantas operation groups entails engineering, catering and aviation services that facilitate the day to day activities. Qantas Airline Company diversified customer and marketing strategies that have ensured global recognition. The company pumped about $6million on the initial campaign
In every business where there is an interaction between firm’s results into stiff competition, thus airline industry is not an exception. The airline industry has high competition profile resulting from a large number of airline industries that want to serve the few numbers of travelers(Limnies-Sekeris 2015,p.99). Most of the global populations do not use the air travel since it is expensive as compared to other forms of transport. Additionally, the competition attributed to the price discounting incurred, since the only nominal charges are unable to sustain some airlines that have a weak capital base.
Qantas Airline Industry collects revenues mainly from the services offered on both the cargo and the passengers. The Australian based company has expanded into other countries such as Asia, New Zealand and recently making an establishment in the United States (Ensign 2014, p.26). The company has an average of 35700 employees across the world, with a total worth of about $ 14,924,000,000 and a market share of about 25.60% in Australia by June 30, 2010. Qantas domestic flight revenue produces approximately 70.4% of the total flight sales however the company has been experiencing a drop on the annual share capacity as from 2007 when it stood at 48% to 39% in 2016. The capacity drop attributed to the competition from the new entrants such as Jetstar Airways, Virgin Australia, and many others.
According to table 2 above U.S market ranks as a number regarding international relations for Qantas. Qantas operates in seven routes to the U.S with Sydney and US being the most extensive route as the city occupies about 35% airline capacity of the two nations(Bagera 2015,p.238). The report future states that approximately 2.9 million traveled across Australia and United States. From the table 3 above, it is deduced that the airline has a low share of passengers between individual nations and Australia, with an average international share of about 28% in 2015. Qantas also serves other countries such as New Caledonia, Papua New Guinea and Canada with a market share of about 48.2%, 43%, 15% respectively.
As at 2016, Qantas had an underlying profit of $852 million and a statutory profit of $ 715 million before taxation that represented second-best performance ever recorded by Qantas 97 years history. Qantas Airways have made considerable gains in all parts as all the financial frameworks objectives were attained. In 2016, the company capita investment was 21.7%. The capital translated into benefits of about 12 million in 2017(Babic,Tatalovic & Bajic 2017,p.151). The report is approved that Qantas have better performance on the domestic business and the international market, and the company remains on track to attain the $ 2.4 million goals set by June 2018.
Literary communication is the process of passing information from one person to another through verbal or non-verbal signs. Organizational communication is the continuous integration of departments, staffs, leaders and the resources that bring about mutual relationship within an organization (Black 2013,p181). Different organizations apply different communication styles such as vertical, horizontal, direct and indirect. Qantas Airlines have applied varied communication styles to foster the marketing and pass pieces of information to customers.
Initially, Qantas used Qantas Frequent Flyer to generate a specific customer list form a single catalog and then delivered to a third party service provider to fill into a promotion administration system that built self-communication. The process enabled the company to send about 250 campaigns per year and about 50 customized per month. However, it was taking quite long time in the campaign process. Moreover, the team lacked a proper way of organizing the contents and approvals, resulting in the delay in executions (Cilliberto & Zhang 2017,p321). The company also employed the use of emails that was integrated into digital messaging to store and send data to the various customer. The strategy reduced the campaign time used to reach customers before adopting the integrated marketing management solution that allows end-to-end campaigns.
Social media- with the technological advancement, Qantas have accelerated the implementation of the social media platform strategy after the 2010 QF32 incident .the use of the social media have made a positive impact on the company’s social responsibility, for example responding to the questions of affected customers such as flight time(Robertson2013, p.6). Qantas’ Facebook and Twitter handles provide customers with information entailing the operations and updates on the emergencies, while the YouTube provide observable videos on the cloud crises, to explain to customers why the flights cannot take place on the poor weather conditions.
The continuous communication between the company and the customers, and the more the communication channels, the happier the customers are. Qantas have strategized on the social media communication channel that charged about $ 21 million to capture and retain the potential customers. Qantas also uses smart crisis communication to move forward the company’s brand. The company has always been in full of emergency management form for specific periods that require quick response to the customers’ needs. For example, when one of the new A380 made an emergency landing due to the mid-light engine malfunction, the management called for an emergency meeting to chat way forward. The solution enables the Qantas to regain the active brand even after the pilots faced accusations of poor quality control and assuring the customers of the safety.
A large number of the world love Qantas according to the survey done by. The report stated that 1,345,464,788 prefer the Qantas airport as the best route to other destinations. The preference is backed by the large percentage of travelers between the United States and Australia through the airways. However, some people also felt that the company did very little in communicating the positions of the previous emergencies to potential customers. The previous problems such as the new landing of A380, explosion oxygen cinder among other made a considerable number of customers to cast doubts on the safety of the Qantas. Research conducted by URM research showed that about 63% believed that Qantas safety had fallen against 36%. However, a large percentage of about 73% still considered Qantas as the safest airline in Australia.
In spite of all the life-threatening events, the Qantas management has impressed the public by the nature of the responses to the situations. The company’s crisis communication and management strategy helped to recapture considerable percentage of trust of customer’s trust through social media and television assurance.
Conclusion
Qantas Airline success is based on the initial objective that was to offer transport service to passengers and mail delivery. The growths were facilitated by the availability of capital and technological know-how from Arthur Baird that have resulted in the establishment of the engineering group within the company. Quality services to varied customers across the world make it among the best airline providers, hence commanding the highest domestic share. Consequently, the company controls a considerable percentage of global share .the communication management of Qantas has enabled it to regain the positive public perceptions even after life-threatening incidents within the companies environ and mechanical malfunctions of the airplanes.
List of References
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