Report on Qantas Airlines
Executive Summary
Qantas airline is an Australian airline covering 14 countries globally. The airline management has a challenge of making decisions following a financial crisis in the economic sector. The managers must decide on restructuring the employees in the company without affecting the operations, which they are currently failing to do. Therefore, the identified issue is the general management problem by the airline.
Background Information
Qantas is the largest Australian airline with the airports in Sydney, South Wales. The airline carries about 60% of domestic customers, and about a fifth of the international passengers (Govindasamy). The airline has its headquarters in Muscat where the manager’s executive officer is located. The company has formed various partnerships with airlines from other parts of the world with an aim of transporting people. Their flight destination is in 27 international destinations and 65 domestic destinations together with its partners (CNN). In 2011, an industrial unrest took place between the airlines management and the unions representing the employees. The issue of concern was a reduction in payments to the unions. The company was among the victims of economic downtimes, and they had no choice, but to restructure its employees for productive performances (Lauder). The employees and the unions did not agree to the changes leading to an industrial unrest. The airline grounded all of its operations on 29Th October locking all the employees out of the ground and offices (Govindasamy). The management decision affected over seventy thousand people worldwide, costing the airline millions. Therefore, the government had to intervene and order the airline to return to its normal operations as they settled the matter.
The problem addresses the challenges the company faces in financial resources and the management choices. The airline is experiencing losses by operating flights that do not return the cost input. This economic change requires that a company makes plans of mitigating losses. Discussion of the choices made by the management with the union on behalf of the employees will lead to an agreement that, once the economic situation changes, the employees would receive compensation. The choice by the management to stop all the operations in the airlines was a wrong move because the company did not analyze the impact it had on the passengers, tourist, state and the employees. The symptoms of the poor choices resulted in employees striking, closure of the flights, loss of millions by the company, decline of tourism in the state, complaints from passengers globally, and the federal government intervention into the situation.
Problem Statement
The issue affecting Qantas airline is a Management problem in decision-making; hence leading to losses.
Research Objectives
Qualitative research Methodology
The research will require information on the events contributing to the unions and the employee’s unrest. The information is in the news reports and the assessment of the proceedings. Thus, after identifying problems, symptoms of the underlying problem will be listed, and the final list containing the outcome of the management choices. The impact of the choices will assess the viability of the decisions made by the management.
Causes of the issues
- Restructuring of the employees without consultation
- Poor salary payments
Symptoms
- Industrial unrest
- Halting airlines operations
- Government intrusion
Consequences
- Loss of millions in the operation halt
- Decline in tourism
- Customer dissatisfaction
- Partners losses
Analysis
The list of the causes offers a clear indication on the choices made by the management. These choices did not yield a positive outcome but led to a series of negative impact. The industrial unrest was due to the uncooperativeness on the part of the airlines leading the employees to strike for attention. After the unrest, the management makes another mistake in the choice of closing down its operations. This led to significant losses for both the company and the government in the tourism sector. The government had to intervene to ensure the airline negotiates with the unions. The overall outcome of the choices made by the airlines management indicates a negative impact on the economic sector, the human resource, and customers in the business. The choices also affected the partners of the Quanta’s airline. Thus, the management needs to recognize that employees are part of the company, and they contribute to the success of the airline if well treated.
Recommendation
The management should understand that the employees are an important part of the company and the state’s economy. The management should treat them as part of the company through consultation in issues affecting them before enforcing policies without consulting with the unions.
The management should seek alternative ways of settling disputes that will not affect important sectors in the economy. An alternative could be a court settlement like in the dispute or through meetings with the unions.
Conclusion
Management choices can affect organizations positively or negatively depending on the situation. The choice of the Qantas management led to losses on their part as well as that of its customers, and employees. Conflicts will arise between the employees and the management, but the management must make responsible choices in dealing with the unions representing the employees on understanding terms without affecting the operations.
Works Cited
Govindasamy, Siva."Qantas suspends operations after locking out striking employees". Singapore: Flightglobal, 2011, 29 Octtober. Web. Available at:
Lauder, Simon. "Qantas to fly again after Fair Work terminates dispute". ABC News, 2011, 31 October. Web. Available at: http://www.abc.net.au/news/2011-10-31/qantas-action-terminated-fair-work-rules/3609158
Qantas grounds fleet over labor dispute. CNN.com. 29 October 2011. Web. Available at: http://www.cnn.com/2011/10/29/world/asia/australia-qantas
