Qantas Communication with the World - Desklib

Qantas is the largest airline in Australia and one of the oldest in the world. The airline industry is characterized by full-service, low-cost, and charter carriers. Qantas operates globally and has mixed communication strategies. The public has a diversified perception of the company's safety. Qantas uses various communication channels, including social media, to reach customers. Despite past life-threatening events, Qantas remains a trusted airline.

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QANTAS COMMUNICATING WITH THE WORLD
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Table of Contents
1.1.0 Executive Summary.....................................................................................................................3
2.0.0 Introduction........................................................................................................................................3
2.1.0 History of Qantas................................................................................................................................3
3.0.0 Characteristic of Airline Industry.......................................................................................................4
3.1.0 Full-Service Carrier........................................................................................................................4
3.2.0 Low Cost Carrier............................................................................................................................5
3.3.0 Charter Airlines..............................................................................................................................5
4.0.0 Organization Performance..................................................................................................................6
4.1.0 Operations......................................................................................................................................6
4.1.0 Competition and Financial Performance.........................................................................................6
5.0.0 Qantas Communication Management.............................................................................................8
6.0.0 Public Perception................................................................................................................................9
7.0.0 Conclusion........................................................................................................................................10
8.0.0 List of References.............................................................................................................................11

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1.1.0 Executive Summary
Qantas is the largest Australia’s airline and one of the world oldest airline, that have
made tremendous growth to command global market. The company under the airline industry is
characterized by either being full service, low cost carrier or charted service airline. The
company currently serves more than 140 destinations in the world, with United States being the
best destination. The company operates under different groups such as customer, engineering,
and has mixed organization communication strategies that facilitate mutual understanding among
customers and the management. The public have diversified perception on the company safety
after past life threatening events, however large number still prefer the company as the safest in
Australia.
2.0.0 Introduction
2.1.0 History of Qantas
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.

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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.
3.0.0 Characteristic of Airline Industry
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.
3.1.0 Full-Service 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

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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.
3.2.0 Low Cost Carrier
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.
3.3.0 Charter Airlines
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.

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4.0.0 Organization Performance
4.1.0 Operations
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
4.1.0 Competition and Financial Performance
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.

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Figure 1shows Qantas domestic market share
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.

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Figure 2shows global destination of Qantas Airline
Figure 3 shows global market share of major airlines
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

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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.
5.0.0 Qantas Communication Management
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

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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

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brand even after the pilots faced accusations of poor quality control and assuring the customers
of the safety.
6.0.0 Public Perception
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.
7.0.0 Conclusion

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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.

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8.0.0 List of References
Babić, R, Tatalović, M, & Bajić, J 2017, 'Air Transport Competition Challenges', International
Journal For Traffic & Transport Engineering, 7, 2, pp. 144-163, Academic Search
Premier, EBSCOhost, viewed 20 April 2018.
Baker, D, & Freestone, R 2012, 'Land Use Planning for Privatized Airports', Journal Of The
American Planning Association, 78, 3, pp. 328-341, Academic Search Premier,
EBSCOhost, viewed 20 April 2018.
Begera, V 2015, 'The Comparison of Multilateral, Bilateral and Global Alliance Cooperation of
Airline Operations', Nase More, 62, pp. 237-241, Academic Search Premier, EBSCOhost,
viewed 20 April 2018.
Black, P 2013, 'Lines of Flight: The Female Flight Attendant Uniform', Fashion Theory: The
Journal Of Dress, Body & Culture, 17, 2, pp. 179-195, Academic Search Premier,
EBSCOhost, viewed 20 April 2018
Ciliberto, F, & Zhang, Z 2017, 'MULTIPLE EQUILIBRIA AND DETERRENCE IN AIRLINE
MARKETS', Economic Inquiry, 55, 1, pp. 319-338, Academic Search Premier,
EBSCOhost, viewed 20 April 2011
D'alfonso, T, & Nastasi, A 2014, 'Airport–Airline interaction: some food for thought', Transport
Reviews, 34, 6, pp. 730-748, Academic Search Premier, EBSCOhost, viewed 20 April
2018.

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Ensign, L 2014, 'airports and regions: THE ECONOMIC CONNECTION', Economic
Development Journal, 13, 2, pp. 23-29, Academic Search Premier, EBSCOhost, viewed
20 April 2018.
Fuellhart, K, & O'connor, K 2013, 'Air Services at Australian Cities: Change and Inertia 2005-
2010', Geographical Research, 51, 1, pp. 37-48, Academic Search Premier, EBSCOhost,
viewed 20 April 2018.
Fuellhart, K, Ooms, K, Derudder, B, & O'Connor, K 2016, 'Patterns of US air transport across
the economic unevenness of 2003–2013', Journal Of Maps, 12, 5, pp. 1253-1257,
Academic Search Premier, EBSCOhost, viewed 20 April 2018.
Kawasaki, A 2017, 'Airport Privatization Competition including Domestic Airline Markets',
Review Of Urban & Regional Development Studies, 29, 1, pp. 2-17, Academic Search
Premier, EBSCOhost, viewed 20 April 2018.
Limnios-Sekeris, l 2015, 'Stakeholders and competition in the transportation of migrants: moving
Greeks to Australia in the post-War era', Journal Of Transport History, 36, 1, pp. 97-115,
Academic Search Premier, EBSCOhost, viewed 20 April 2018.
Mantecchini, L, Gualandi, N, & Paganelli, F 2013, 'INTEGRATION AND CONCENTRATION
OF EUROPEAN AIR TRANSPORT MARKET', International Journal For Traffic &
Transport Engineering, 3, 2, pp. 204-219, Academic Search Premier, EBSCOhost,
viewed 20 April 2018.

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MCDONNELL, G 2015, 'What Caused Airline Deregulation: Economists or Economics?',
Independent Review, 19, 3, pp. 379-395, Academic Search Premier, EBSCOhost, viewed
20 April 2018.
Robertson, I 2013, 'Over-Regulation is Stifling Australia's Media', Policy, 29, 1, pp. 3-7,
Academic Search Premier, EBSCOhost, viewed 20 April 2018.