Qantas Airways Case Study

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3.2 Weaknesses

3.2.1 Reliability Concern

Qantas has been involved to some incident with some of their air-crafts in 2008, for example, Qantas had conflicts with its engineers in reaching an agreement on a wage dispute earlier in 2008. However, compromise was finally completed with a predictable annual wage raised between4 to 5.8 % (Brigden, 2009). This is an important issue, and if it occurs again; employees will have negative trust to the company that brings negative effects to overall operations.

3.2.2 Wildcat Strike

A wildcat strike action, often referred to as a wildcat strike, is a strike action taken by workers without the authorization of their trade union officials (Study mode, 2012). Qantas have been hit with worst strike in 2009, which caused a major delay that also affected other flight. It also can damage the brand image and customer loyalty. In addition, the company provides inadequate training of staff and Qantas is unable to control their staff. As Qantas focuses on the safety first instead of their staffs, which may cause their discontent. Therefore, when their engineers strike, the consequences would be horrific.

3.3 Opportunities

3.3.1 Open Skies Policy

There were many efforts between Australia and other nations such as the US, New Zealand, and so on to approve an open skies agreement. Open skies policy open up an opportunity for aviation industry as a result of liberalization of international aviation industry rules and minimum government intervention. As a result, it has created new opportunities to operate unrestricted capacity over any routing they choose and with as many flights as they desire in beyond markets.

3.3.2 Technology Advances

Qantas uses the technology to apply with products and service for customer to have more convenient. For example, a 2D bar-code image is replacing paper boarding passes for domestic passengers using Qantas's new Mobile Check-in service. This service provide customers check in on their mobile which they will receive text message confirmation with 2D bar-code. Moreover, Jetstar also will launch this system as well. As a result, the science and technological innovation of aviation manufacturers will speed up the development of civil airline enterprises. In addition, as Qantas is one of the members of One-world alliance, this group can lead Qantas has many services for example, Frequent Flyer program can create brand recognition and customer loyalty for Qantas (Qantas, n.d.).

3.4 Threats

3.4.1 Excessive Competition

Low-cost airlines have become the main competitor of Qantas. Tony Fernandes, Air Asia CEO, said that Air Asia is going to start flying into Sydney by midyear of 2010. Besides, Air Asia X also provides cheap flight to London. This enhanced on the whole competition in Asia-pacific and Europe region. The competitors of Qantas are not limited only Air Asia, the other low-cost airlines such as Tiger Airlines and Virgin Blue also have offered the same routes as Qantas or Jetstar. The low fare charged by these budget airlines makes the group's airline operation less competitive.

3.4.2 Rising Fuel Prices

Nowadays, fuel price is unstable and trend to increase, it is the problem that every airline worry. According to ABC News (2008) mentioned that “Qantas CEO Geoff Dixon says fuel prices are a greater challenge to the global airline industry than SARS or the September 11, 2001 terrorist attacks in the US.” Also, the following chart can clearly show us the rising trend of fuel prices. In 2012, it almost reached a record high level--A$4400 million. The cost of fuel formed a significant part of the total expenses for the group, hence, any increase in fuel prices could negatively impact the group’s operations which in turn would pressurize its margins and profitability.[pic 1]

4. The Impact on HR Planning

From the above SWOT analysis, it can be inferred that the strengths of Qantas make it well-respected and an airline which infuses public confidence and it has good selling prospects on the basis of its brand name. Qantas also should handle its weaknesses by taking actions like it should make the flight conditions and services clearly and increase the prices giving proper justification and the pricing should be competitive. New technology brings new skills requirements when planning human resources. So, the employees hired should be multi-skilled so that they can handle various issues. To tackle the threats, Qantas should try to resolve the concerns very promptly. Overall, Qantas should mainly solve its weaknesses and threats, as these two factors can grow pressure on their staffs. In addition, Qantas group operates in more than 46 countries flying almost 45 million passengers annually. This is a major challenge for the organization in terms of varied social and cultural preferences of the customers. Therefore, customized customer service along with high levels of employee engagement is essential to ensure brand loyalty in an industry strewn with lucrative alternatives. In 2011, Qantas identifies its four main issues in human resource planning as: flexibility and adaptability in the workplace; developing management and leadership capacities; improving productivity and labor unit costs; and developing a safer workplace.

5. Recommendations

According to the evaluation above, there are some recommendations in the following, which will help maintain the commitment of employees and implement HR Planning.

5.1. Job Analysis

Under job analysis, the Human Resource Management (HRM) is responsible for planning, recruitment, selection, placement and induction of workers. The procedures that are supported by job analysis process include personnel selection, training, job evaluation as well as performance appraisal. The process of job analysis supports the Qantas organizational strategy in dealing with market competition and talent crisis.

5.2. Job Design

Job design, which aims at outlining and organizing duties, responsibilities, as well as tasks in a single unit in order to achieve particular objectives. Job design in Qantas airways is essential in enabling effective feedback. In addition, training is an imperative part in job design in order to make sure that employees are conscious