MGMT6012: A Report on Jetstar Airways' Management Perspective

This report examines Jetstar Airways, an Australian low-cost airline, focusing on its organizational behavior and management practices. The report analyzes the airline's challenges, including IT outages and low-quality service, impacting customer satisfaction and market competitiveness. It utilizes a q...Read More

Running head: MARKETING
Jetstar
Management Perspective
3-28-2020

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Table of Contents
Introduction................................................................................................................................2
Overview of Jetstar Airline....................................................................................................2
Research Methodology...........................................................................................................3
Qualitative research method...............................................................................................3
Data Collection technique and data sources.......................................................................4
Data analysis.......................................................................................................................4
Management Theory...............................................................................................................4
Role of ethics and diversity in Jetstar Airline........................................................................6
Recommendations..................................................................................................................7
Conclusion..................................................................................................................................7
References..................................................................................................................................9

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Introduction
The aim of this report is to increase the understanding related to organizational
behavior and the dynamics of the business environment. This paper is aiming to develop the
required skills to understand the constrictions the managers and leaders deal with in
developing strategies for leveraging the advantages and deal with the barriers in the
organizations. In order to do so, the report has selected an Australian company that is Jetstar,
research is being conducted to identify the issue it is dealing with and providing the solution
for the same in the form of recommendation. The discussion is being based on the application
of different management theories.
Overview of Jetstar Airline
Jetstar Airways is a low-cost airline of Australia with headquarter in Melbourne. The
parent company of Jetstar is Qantas, introduced in the response to the huge threat imposed by
Virgin Australia and Tiger Air. Jetstar is considered to be the major part of the two-brand
strategy of Qantas, Qantas Airways as the premium airline service provider and Jetstar as the
low-cost service provider (Jetstar, 2019). Jetstar is said to carry around 8.5% of all passengers
who travel from and to Australia. This company operates its business as a wide domestic
network and international and regional services from its Melbourne Airport which is its main
base or hub. The company is using its mixed fleet of the Airbus A320 family and the Boeing
787 Dreamliner in Melbourne. The main competitor of Jetstar is Virgin Australia and its low-
cost subsidiary that is Tigerair Australia. Qantas has successfully placed its stake in Jetstar
Asia Airways, Jetstar Japan, and Jetstar Pacific Airlines (Jetstar, 2020).
Jetstar Airlines has been selected for this report because it is presently dealing with a
number of issues such as IT outage and low-quality services due to which the satisfaction of
its target audience is diminishing or declining (Hendry, 2019). This is resulting in allowing its
competitors to snatch its customers which is reducing its customer base. However, in this

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report, the low-quality service issue is being discussed and the solution for the same is also
being provided.
As per the research conducted by Charleston (2017), it has been identified that Jetstar
is not the lost cost air service provider but the quality of its services is also low as per the
customer perception. A survey conducted on over 11000 passengers globally including
Australian consumer watchdog Choice of Australia revealed that Jetstar is ranked last from
73 carriers.
Qantas the parent company of Jetstar is ranked as the best airline in the Aussie airlines
and gets the rank of 36 on the global list that is followed by Virgin at the 51st rank and Jetstar
at 73rd rank (Charleston, 2017). All these airlines were ranked on the basis of different
variables such as boarding, comfort, punctuality, food quality, checking in, value for money,
and customer service. This survey conducted on the international airlines revealed that Jetstar
holds the second-highest rate of delays of flights with an average of around four hours. In
fact, the analysis reveals that the United Airlines of the US was positioned at 49th place which
was before its PR issues which created international headlines. The list of airlines that were
seen at the top of the list was Emirates, Avianca, Qatar Airways, Luxair, and Singapore
Airlines (Charleston, 2017).
Research Methodology
Qualitative research method
In order to conduct this research, the use of a qualitative research method has been
selected. Qualitative research is said to be a scientific method of observation for collecting
non-numerical information or data (Hammersley, 2013). This is done through a case study,
introspection, artifacts, productions, historical and visual texts, observational, life story, and
interview. For presenting this paper, the use of observational, historical, story, etc. are used.

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Data Collection technique and data sources
Data collection is considered to be one of the important parts of any paper as it
highlights the information related to the selected topic. For gathering data, there are two
methods that are the primary method and secondary method (Olsen, 2011). Under the
primary method, fresh data is gathered through interviews, surveys, and experiments.
However, under the secondary method, the findings and data of different scholars are used
related to a similar topic (Phillips & Stawarski, 2016).
In order to present this paper, the use of a secondary method of data collection is used.
In this data from different sources such as websites, articles, books, journals, and the annual
report has been gathered such that ha reliable information can be presented related to the
topic. This has supported in gathering reliable and valid information related to the issues that
Jetstar Airlines is facing.
Data analysis
Data analysis is considered to be the procedure that is used to evaluate the collected
information with logical reasoning to properly identify every aspect of the gathered
information. Data is gathered from diverse sources (Grbich, 2012). After collecting the data,
it is analyzed in order to identify the findings related to the topic of the paper.
In order to present this paper, the use of the content analysis method is selected.
Content analysis is one of the research methods of data analysis used for studying the
documents that can be presented in different formats. The benefit of using this method is to
analyze social phenomena (Cho and Lee, 2014). This method is beneficial for this paper as it
has supported in properly analyzing the gathered information and presenting the findings.
Management Theory
The theory that is related to the above-discussed issue of the low-quality services
faced by Jetstar Airlines is Total Quality Management.

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Total Quality Management is the constant procedure of perceiving and decreasing or
eradicating errors in streamlining the management of supply chain, enhancing the experience
of the customer, manufacturing, and confirming that the workforce has received better
training. In the present time, quality management is focused on holding every party
accountable that is involved in the procedure of production for the entire quality of the
service or product (Goetsch and Davis, 2014). Total quality management was introduced by
William Deming, who is a management consultant whose theory has a major impact on the
manufacturing of Japanese business. Total quality management shares similar traits with the
Six Sigma improvement procedure, but it is not exactly as same as s Six Sigma. Besides this,
total quality management concentrates on confirming that internal rules and procedure
standards decrease errors, where Six Sigma focuses on decreasing the defects (Kiran, 2016).
In addition to this, total quality management is called to be a procedure focused on
consumers and aims for frequent development of the operations of the business. It struggles
to confirm that all the related employees work for attaining the common objective of
enhancing the quality of service and product, along with enhancing the process that is
adopted in the production system (Idris, 2011).
Considering the above case of Jetstar Airline which is presently in the headlines for
offering low-quality services to its customers. In order to offer low-cost services to the
customers, it is unable to meet the quality standards and the major cause of this is increasing
prices of fuel in the market. The impact of low-quality service is on customer satisfaction
which is decreasing the customer base of the company. In order to improve the quality of the
service and product, Jetstar must adopt the total quality management theory by which it can
focus on the demand and desires of the customer and can enhance its production procedure of
the products and services.

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Role of ethics and diversity in Jetstar Airline
The role of ethics is very crucial in the operation of Jetstar Airlines as it operates its
business in the local as well as international market, due to which it has to follow all the laws
and regulations that are applicable in the Australian market and in other countries where it
operates. It is important for the company because the obedience of the law is about observing
the letter and soul of law along with handling the business of the entire Group, such that the
Group and its all the employees are identified and called as the good corporate citizens the
way they operate the business and in link with their employment. The entire Qantas Group
including Jetstar Airlines follows a ‘Zero Tolerance’ approach in relation to the corruption
and crime in the operations of the business (Qantas Group, 2020). In addition to this, the
employees of the company are encouraged to follow the higher level of integrity and ethics in
relation to the beliefs and values for the better interest of the group (Qantas Group, 2020).
Diversity in the entire Qantas Group is placed as an important aspect due to which it has
framed an Inclusion and Diversity Policy. This policy is related to the strategy, beliefs, and
inclusion and diversity strategy of the group. The objective of this policy is to drive better
results and an enhanced experience of people by shared responsibility for Inclusion and
Diversity (Qantas, 2019). The main principle of this policy is:
 To treat every individual and people with respect,
 To proactively manage the risk,
 To be committed to the safety of the passenger and employees,
 To comply with the regulations and laws of the industry.
The major requirement of this policy is from its employees and it asks them to be
accountable for maintaining the inclusive as well as the diversified culture at the workplace.
Every employee should display inclusion by the beliefs of the group, respecting the diversity
and addressing exclusion (Toten, 2019).

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Recommendations
From the above analysis, it has been identified that Jetstar Airlines is a subsidiary of
the Qantas Group which offers low price airline services to its target market. However, in
order to offer low-cost services to the customers, it is unable to meet the service quality
measures due to which its customers are getting dissatisfied. For overcoming this issue, the
company needs to first install a good and effective IT system that can help the company in
maintaining the schedule of its flights in order to reduce the number of delays of flights to
reduce the number of unsatisfied customers. This will not just help the company in reducing
the number of delays of the flights but can also provide time to time information to its target
audience about the changes in the times or rescheduling of the flights.
In addition to this, the company can contact with some of the good supplier of food in
the market who can provide high-quality food options for the customers on the flight at
reasonable prices such that the customers can be happy and feel delighted. This will help the
company in improving its brand image among its target audience.
Conclusion
The above report has provided a detailed analysis of the management issue that Jetstar
Airlines is dealing within the market. The analysis has revealed that the company is presently
unable to offer quality services to its customers due to which there is an increased number of
unsatisfied customers. The above report has linked this issue with one of the management
theories that is total quality management. This theory focuses on decreasing or eradicating
errors in streamlining the management of the supply chain, enhancing the experience of the
customer, manufacturing, and confirming that the workforce has received better training. In
the present time, quality management is focused on holding every party accountable that is
involved in the procedure of production for the entire quality of the service or product. Jetstar
Airlines should adopt the total quality management theory and focus on the demand of the

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customer by improving its services. In addition to this, it has been revealed that ethics and
diversity are some of the essential aspects of the entire Group which represents their values
and beliefs. In the end, the report has recommended a company to install an updated IT
system that can help in properly scheduling the flights and reducing the number of flight
delays. Furthermore, it must get into the contact of a good supplier of good products at low
prices.

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References
Charleston, J.L. (2017). Jetstar Voted Worst Airline In The World For Customer Satisfaction.
Retrieved from https://www.huffingtonpost.com.au/2017/04/27/jetstar-voted-worst-
airline-in-the-world-for-customer-satisfacti_a_22059028/
Cho, J.Y. and Lee, E.H. (2014). Reducing confusion about grounded theory and qualitative
content analysis: Similarities and differences. The qualitative report, 19(32), p.1.
Goetsch, D.L. and Davis, S.B. (2014). Quality management for organizational excellence 1st
ed. New Jersey: Pearson.
Grbich, C. (2012). Qualitative data analysis: An introduction 1st ed. U.K: Sage.
Hammersley, M. (2013). What is Qualitative Research? 2nd ed. U.S: A&C Black.
Hendry, J. (2019). Jetstar hit by nationwide airport IT outage. Retrieved from
https://www.itnews.com.au/news/jetstar-hit-by-nationwide-airport-it-outage-535241
Idris, F. (2011). Total Quality Management (Tqm) And Sustainable Company Performances:
Examining The Relationship In Malaysian Firms. International Journal of Business
and Society, 12(1), 31-52.
Jetstar. (2019). Jetstar Airways. Retrieved from
https://www.jetstar.com/au/en/about-us/jetstar-group/jetstar-airways
Jetstar. (2020). About us. Retrieved from https://www.jetstar.com/au/en/about-us
Kiran, D.R. (2016). Total Quality Management: Key Concepts and Case Studies 1st ed. U.k:
Butterworth-Heinemann.
Olsen, W. (2011). Data Collection: Key Debates and Methods in Social Research 1st ed. U.K:
SAGE.

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Phillips, P.P., & Stawarski, A.C. (2016). Data Collection: Planning for and Collecting All
Types of Data 2nd ed. U.K: John Wiley & Sons.
Qantas. (2019). Inclusion And Diversity Policy. Retrieved from
https://www.qantas.com/content/dam/qantas/pdfs/about-us/corporate-governance/
qantas-inclusion-diversity-policy.pdf
Qantas Group. (2020) Our people. Retrieved from https://www.qantas.com/au/en/qantas-
group/acting-responsibly/our-people.html
Qantas Group. (2020). Code Of Conduct And Ethics. Retrieved from
https://www.qantas.com/content/dam/qantas/pdfs/about-us/corporate-governance/
qantas-code-of-conduct.pdf
Toten, M. (2019). Diversity and inclusion key to Qantas turnaround. Retrieved from
https://hradvance.com.au/news-articles/diversity-and-inclusion-key-to-qantas-
turnaround