Business Analysis Project

This report offers recommendations to mitigate issues in the service and management system of Qantas airlines. The recommendations include introducing passenger screening technologies, offering short term discounts for students and elderly citizens, improving administration and management, lowering the frequency of flight cancellations, maintaining sufficient investment to purchase biofuels, following governmental guidelines related to employee pay act, and adapting to risk management techniques. The report also provides an introduction to Qantas airlines, research findings, and a conclusion.

Running Head: BUSINESS ANALYSIS PROJECT
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BUSINESS ANALYSIS PROJECT

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Executive summary
Qantas airlines are one of the first growing aviation industries in Australia hosting travellers
across the country. The airlines connect with many countries conveying passengers to business
and holiday destination. Qantas has collaboration with multiple partners such as resorts and
banking systems that generates more revenue at the same time offer their customer with lucrative
combo packages. However, there are some nicks in the service and management system of
Qantas, this report is prepared that would offer recommendations helping the aviation firm to
mitigate issues by modifying customer services.

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Contents
Introduction......................................................................................................................................4
Research findings.............................................................................................................................4
Recommendations............................................................................................................................5
Short term.....................................................................................................................................5
Medium term................................................................................................................................7
Long term.....................................................................................................................................9
Conclusion.....................................................................................................................................11
Reference list.................................................................................................................................13

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Introduction
Qantas Airways limited are a popular frequent carrier in Australia serving different communities
for more than 100 years. The flight offers its customer with customized services with in-flight
dining facilities booking accommodation and entertainment for travellers. The carrier aims at
creating potential values for its every stakeholder by offering them world-class experiences. This
report will throw light on recommendations based on the prior report on Qantas consumer
analysis. The recommendations would help the aviation industry to design more dedicated
service in the near future through consumer satisfaction.
Mission statement: delivering today, acting responsibly and looking ahead
Research findings
Qantas has many competitors in the market such as Virgin and Tiger, in order to maintain its
brand value it seeks optimization of domestic routes so that customers can avail it at a cheap
price (qantas.com, 2019). As a result of increasing competition in the aviation industry, the fuel
price and aircraft maintenance have raised high.
It adopts the latest technologies such as safer flying mode to ease their customers in travelling.
Presence of too many competitors (new entrants) in the market might put the industry in threat as

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many of them offer seasonal discounts and offers to their passengers at a low price(Ko, 2019)
(bargain power of buyers).
It focuses more on domestic routes rather than international ones (qantas.com, 2019). Although
the firm is known to deliver remarkable services, it pays below average figure to its employees.
The recommendations might help the firm to overcome the challenges.
As per information obtained from different sources Qantas operates majorly in the following
three routes. The categories of customer holding larger fraction of this particular carrier falls
among business magnet flyers, holiday travellers and a few passengers shuttling between their
work place and home town (Baxter, Srisaeng & Wild, 2018). The routes travelled by Qantas are
 Kalgoorlie - Perth
 Melbourne - Sunshine Coast
 Melbourne – Sydney
The recommendations suggested for Qantas are specific to the above mentioned routes.
However, some of the recommendations proposed will be applicable for all of the three routes
since the flaws identified from previous report has risen serious concern for the firm.
Recommendations
Short term
 Introducing passenger screening technologies(route Kalgoorlie – Perth)

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 Offering short term discounts for students and elderly citizen (Melbourne - Sunshine
Coast )
Action plan
As it is evident from the consumer megatrends identified from Qantas aviation firm, consumers
have totally relied on digital technology and the passengers fall into several categories such as
business, leisure and holiday travellers and they engage into online transition while purchasing
tickets (Shaw, 2016). Therefore a passenger screening technologies will reduce the chances of
risk in carrying any insidious passenger (Teker, Teker & Guner, 2016). This can be performed
with the help of imaging and trace detection technologies that screens a particular suspected area
without harming the privacy of the traveller. This might also save the flight from hijack or any
accidental injury (Cline, 2016). For instance, this technology can also be used for screening of
robbed gold from Kalgoorlie. This particular route is the busiest route and Qantas should start its
service here. Since Kalgoorlie is a goldmine centered business city and time duration required to
reach Perth is just 1hr 15mins, there is always a risk involved for such illicit gold trafficking.
Gold is an expensive equally multipurpose metal on which 60% GDP of Australia is dependent
for their living. Therefore loot of such natural resources should concern the air industry as it is
the easiest and safe mode of shuttle for illegal trade. With the rise in demand for gold due to
mega trend exploration, Qantas should focus on this route that would directly impact the nation.

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 Customer segmentation chart reveals that leisure customers make up to 15% of total
passengers, consisting of larger groups (qantas.com, 2019). So in order to please the
travelling experience, Qantas can offer a discount applicable for purchasing a certain
number of the tickets. The route Melbourne - Sunshine Coast remains crowded with
travellers of different ages. Sunshine coast is a famous tourist destination of Australia and
people never gets tired to cherish the mesmerizing beauty of the coast line villages and
beaches. On taking such an initiative to this route, it can attract more customers and
passengers will also prefer to revisit the tourist spots with families and friends (Trischler
& Lohmann, 2018). Giving nominal discounts, middle class can experience all the
facilities creating brand awareness.

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Medium term
 Administration and management (Melbourne – Sydney)
 Lower the frequency of flight cancellation (Melbourne - Sunshine Coast )
Action plan
With rising competition, Qantas has set its price towards the higher end that bothers its
customers. Optimizing only the domestic route is another downside of the industry. Hence
efficient management and administration is recommended to look into these actions. According
to Welc & Esquerdo (2018), the firm should approach the federal government for financial
support rather put pressure on its customers. The federal government spends a handsome amount
on aviation advancements. An efficient research team should be appointed that would pinpoint
every flaw need to be addressed. Management should be able to review the merit of researchers
and implement actions required (Rhoades, 2016). However if serving domestic route is their
primary concern they can focus on the route connecting Melbourne to Sydney with least flight
cancelation. This route is busiest one and tickets are booked much earlier so people find it
difficult at times during emergency. Increasing number of rides to this route will ease the
customers. Also the journey time ends by one hour so people are likely to opt for the route via
air. The ticket price is also too high for this route and air industry earns billion dollars from this
single route.

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Considering the inconvenience faced on sudden flight cancellation, Qantas should reduce its
frequency. As this route of Sunshine coast is generally used as holiday destination, the flights are
frequently cancelled and the firm see this route to be lesser important. A flight is only to be
cancelled when there is an utmost necessity such as unclear sky route or gusty storm. In case
there is unpredictable cancellation, the organization is required to arrange for an alternative
within the stipulated time (Burger, 2017).

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Long term
 Maintain sufficient investment to purchase biofuels (Melbourne – Sydney)
 Follow governmental guidelines related to employee pay act( all three routes)
 Adaptation to risk management techniques (All routes, specifically the Kalgoorlie– Perth
route)
Action plan
As recorded from SWOT consumer analysis in the previous report it reveals that a rise in the
price of fuels has set the airline fair high (qantas.com, 2019). In such a scenario the airline
industry should opt for biofuels.
As seems from demographic segmentation report, customers range from the middle class to
higher working class such as Johnson. Similarly, students such as Maria can make frequent travel
from her hostel to her hometown. Therefore the route connecting Melbourne to Sydney remains
busy throughout the day. Therefore opting for biofuels might bring down the fare for the route
since it is costliest comparative to the other two routes.
Qantas should collaborate with biofuel stakeholders including governmental entities. According
to Petitt, (2019), this approach might help them to build financial structures and raise capital
integration in biofuel supply. According to Biofuel policy theory, using biofuel will also reduce
adverse health effects on the customer since it would reduce exposure to carbon emissions.
Hence passengers who are allergic and very sensitive to any sort of transport particulates can
priories Qantas over other airlines.

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Qantas should follow the regulations of employees pay act in order to reduce employee quitting.
Reports have revealed that the package offered to long term existing employees is poor as
compared to the aviation market. Unpredictable relinquishment by the employees makes the
guests unwelcomed when there are not sufficient staffs available to host them (Baker, Merkert &
Kamruzzaman, 2015). Also, there are passengers who are experiencing the travel for the first
time so they require constant guidance of the cabin crews (Park, 2007). This recommendation is
applicable for all the three routes as employee quitting will affect customers availing service for
all the routes.
.

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Conclusion
Industry analysis of Qantas Airways states that the airline operates in Australia, New Zealand
and Asia. The industry holds a market share of 60.7% that is worth 17.06 dollar bn and the
annual report says that the organization is likely to increase its revenue by 2.3%. The marketing
strategies undertaken by Qantas are generally public campaigns and events that help them to
reach a customer. The group keeps transforming their strategies and policies so that their
passengers are better positioned in the near future. Although Qantas have taken worthy initiatives
towards sustainable development along with serving customers, it is experiencing potential
threats and challenges. The stated recommendation along with action plan is likely to overcome
its shortcomings in the near future.

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Reference list
Baker, D., Merkert, R., &Kamruzzaman, M. (2015). Regional aviation and economic growth:
cointegration and causality analysis in Australia. Journal of Transport Geography, 43,
140-150.
Baxter, G., Srisaeng, P., & Wild, G. (2018). The role of freighter aircraft in a full-service
network airline air freight services: The case of Qantas Freight. MAD-Magazine of
Aviation Development, 6(4), 28-51.
Burger, V. (2017). The influence of fuel properties on threshold combustion in aviation gas
turbine engines (Doctoral dissertation, University of Cape Town).
Cline, H. E. (2016). Hijacking open skies: the line between tough competition and unfair
advantage in the international aviation market. J. Air L. & Com., 81, 529.
Jung, J. H., &Yoo, J. (2019). The effects of deviant customer-oriented behaviors on service
friendship: The moderating role of co-production. Journal of Retailing and Consumer
Services, 48, 60-69.
Ko, Y. D. (2019). The airfare pricing and seat allocation problem in full-service carriers and
subsidiary low-cost carriers. Journal of Air Transport Management, 75, 92-102.
Petitt, K. K. (2019). Safety Culture, Training, Understanding, Aviation Passion: The Impact on
Manual Flight and Operational Performance.
qantas.com(2019)QANTAS [Accessed on 3 May 2019 From https://www.qantas.com/au/en.html]
Rhoades, D. L. (2016). Who Governs International Aviation?.In Ethical Issues in Aviation (pp.
73-80).Routledge.

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Sarina, T., & Wright, C. F. (2015).Mutual gains or mutual losses?Organisational fragmentation
and employment relations outcomes at Qantas Group. Journal of Industrial
Relations, 57(5), 686-706.
Shaw, S. (2016). Aviation marketing and the leisure market. In Aviation and Tourism (pp. 65-
76). Routledge.
Teker, S., Teker, D., &Güner, A. (2016).Financial performance of top 20 airlines. Procedia-
Social and Behavioral Sciences, 235, 603-610.
Trischler, J., &Lohmann, G. (2018).Monitoring quality of service at Australian airports: A
critical analysis. Journal of Air Transport Management, 67, 63-71.
Welc, J., &Esquerdo, P. J. R. (2018). Real-Life Case Study: Identifying Overvalued and
Undervalued Airlines. In Applied Regression Analysis for Business (pp. 257-
276).Springer, Cham.