Operational Management of Airlines Industry: A Case Study of Qantas

This report provides an overview of operational management within the Australian airline industry, with a specific focus on Qantas and its operational strategies. It discusses the key aspects of airlines industry operational management including revenue and flight management, safety enforcement, marketing and employee recruitment. The report highlights Qantas' operational strategies, emphasizing security, safety, domestic market position, sustainability, alignment with Asia, diversification, loyalty program development, and brand investment. It also touches on the role of technology, data analytics, and employee training in enhancing operational efficiency and customer service. The conclusion underscores the importance of effective operational strategies for achieving organizational goals, while recommendations are provided for improving transformation, training, and leadership development within the airline industry. Desklib offers a wealth of similar resources for students seeking academic support.

Running head: OPERATIONAL MANAGEMENT
Operational Management

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Table of contents
Contents
Operational management of Airlines industry of Australia.............................................................2
Operational strategy of Qantas........................................................................................................4
Conclusion.......................................................................................................................................6
Recommendation.............................................................................................................................7

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Introduction
Operations management refers to a particular area of management
that remains concerned with controlling and designing the procedure of
organisational operations, process production and redesigning of the
operations. It includes the responsibility for making sure of organisational
operations and only some resources can be used for meeting the needs of
consumers. For the study, a well-known organisation, Qantas has been
selected. In the study, the Airlines industry’s operational aspect is discussed
effectively and Qantas’ operational strategy is discussed as well.
Operational management of Airlines industry of Australia
Airlines industry’s operational management includes the organisational
aspects of the transporational industry. Managers perform their work for the
airlines in an effective manner and they ensure the organisational operations
run in a smooth manner. The operational management remain involved into
revenue management, flight management, enforcement of safety, marketing
and employee recruitment (Cascio 2018). The operational planning of the
organisation is creating a plan that remains operationally amendable,
achievable and recoverable at low possible cost. Operational control refers to
controlling deviations from the plan in a cost efficient and service centred
manner (Kowalkowski et al. 2015). The frequency and complexity of regular
operational decisions and necessary planning changes are increasing rapidly.
For the operational management team of Airlines industry, each and every

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day has been scheduled for irregular operations from the whole procedure of
planning phase to the particular day of performance (Bhattacharya 2014).
The integrated operational planning gives the business a proper
business structure and procedures, so that collaboration can be developed
among business requirements and objectives in both scheduling and
planning. The operational management enables the airlines for responding to
the changes in the competitive and global environment. Integrated planning
of operations remains crucial for organisational success in the airlines
industry environment in today’s world.
The airlines industry’s planning procedure can develop the
organisational and infrastructure needs for providing support to planning and
commercial goals, therefore, the airlines perform the activities in an effective
manner. All of the airlines industry has some type of operations management
procedure that can be used on a daily basis. However, many people do not
completely understand the capability of service enhancement and the
potential of cost management of a completely collaborative procedure.
Operational departments remain tasked with coordinating and controlling
proper execution of daily schedule of airlines. The operations management’s
major objective is to reducing the service, performance and irregular
operations’ effect. An effective operational management must include the
management of Airlines’ industry, effect of scheduled disruptions, giving
quality service to various passengers and maximisation of revenue retention.

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Effective organisational planning and control can continuously search
balance between quality of the service, reliability of operations, revenue
enhancement and cost management (Comodi et al. 2015). A few industries
manage various moving aspects, alliance marketing and airlines routes can
be expanded, so that they can have an impact on different world events.
Cost drivers of the operations management include marketing goals,
scheduled complexity, aircraft assignment, crew training, crew staffing,
proper utilisation, blocktime standards, scheduled options of recovery,
scheduled goals of reliability, objectives of scheduled reliability and
scheduled recovery (Heizer 2016).
Operational management’s reliability evaluation program includes root
cause evaluation and allocation of effect. All of these aspects have an impact
on the organisation’s cost and performance. The organisation’s option
evaluation includes resources, time and adjustment of schedule. Other
components of reliability analysis program are track results, implementation
of necessary changes and collaborated review of advantages and costs. The
measures of operational cost management include safety, productivity,
maintenance, utilisation of crew resources, revenue and productivity. The
components of cost measures include flight, technical and ground operations
(Galliers and Leidner 2014). All of the aspects of flight operations include
block hours per aircraft and pilots. The technical operations’ components
include the maintenance of time productivity, utilisation of LLP and check
yield.

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Operational strategy of Qantas
The operational strategy of Qantas includes security, safety,
maximisation of domestic position, sustainability, alignment with Asia,
diversification and development at the loyalty of Qantas, investment in
brand and consumers. The organisation properly invests into the people with
the help of effective development, assets and training for ensuring the fact
that the operations remain safe. Effective procedures can be established for
managing injuries for making sure that people get proper treatment and
recovery. As far as frontline leaders are considered, they are provided right
kind of resources and knowledge for shaping up strong culture of safety.
Initiatives are targeted properly for ensuring people remain safe at the time
of performing tasks without risks. Effective domestic business is considered
major source of the earnings and flyer base. The organisation’s domestic
organisation refers to the business strategy, therefore, Qantas serves
effective service, travel market, full service when Jetstar deals with price-
sensitive consumers.
Development and diversification are considered significant aspects of Qantas
organisation. The organisation stays at the heart of the Group’s effective
competitive edge, so that consumer loyalty can be reinforced that the time
of providing the diversification of earnings.
The organisation, Qantas Group’s goal is to serve the consumers in
every market that they serve. They invest into new technology to provide

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people better technology and the consumers control can their journey. The
Management team’s service will be much faster than the standard of the
industry, which allows streaming of entertainment and sports. The
fundamentals of consumer service can invest in the fundamentals and
training for approx. 24,000 frontline employees as these people know that
they are keys to the company’s reputation as the effective brand. The brand
remains synonymous with the country and it represents the country in an
appropriate manner. The communication strategy controls high investments
and partnerships properly, so that these people focus on Australian
excellence, action plan and these people work with effective communities
(Baumgartner, 2014). The organisation has developed long-standing
partnership with Contemporary Art in the year of 2016, so that it can be
brought to the international audience. The organisation provides support to
the development with the help of marketing partnerships and Australian
Tourism.
Jetstar and Qantas work effectively with partners for making positive
effect on the opportunity and community. Many of the employees donate
skills and time for the purpose of effective causes. These people stay in the
procedure of finalising new plans and programs, so that Qantas can provide
support to the employees in contributing to various causes that reflect
organisational strategy. Big data help Qantas control operational disruptions
and new schedule automates the evaluation of operations and passenger
facts (Baumgartner 2014). Another significant business strategy is consumer

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knowledge and digital techniques, so these people can give more
personalised service and creativity for the consumers. In the year of 2015
and 2016, people re-platform the organisation, Jester and Qantas’ websites,
mobile applications that gets resulted in facts, shopping options and social
media channels operate for almost 24/7. These people properly invest in the
analytical skills and capacities across the workforce (Campbell and Reyes-
Picknell 2015).
Conclusion
Operational management refers to the design and control of the
business, so that operational goals can be understood effectively. In the
assignment, various types of operational strategies are all discussed
properly. The organisational strategies include safety, security, domestic
position’s security, sustainability and so on. The significance of effective
technology and innovation of the organisation is described in an effective
manner. With the help of this assignment, analytical skills and capacitities
can be identified in an effective manner.
Recommendation
Engagement of people behind shared objectives remain crucial to the transformation and
training programs remain focused on cultural change and development along with regulatory
frameworks, robust safety and policy training. Both of the airlines have extensive programs, they

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can focus on the organisational principles and language for underpinning empathic services.
Reward and recognition of Qantas can be underpinned by the easy-to-use system and it provides
training to 7,000 of the 1,000 employees. Jetstar’ and Qantas’ reward program can be effectively
for giving people an opportunity for recognising and promoting organisational values. Like
Qantas, the programme encourages everyday feedback into quarterly, annual and monthly
awards.
As far as outstanding performance is considered, the organisation pays proper cash bonus
to the employees for two different consecutive years. The business professionals prioritise
leadership and communication by the line managers as far as work can be understood. The
organisation’s leadership frameworks remain focused on breadth and depth of the talent and the
group’s leadership programs go beyond the senior levels, so that 400 senior leaders, 3000 front-
line leaders and 1000 people are provided proper training and techniques. One major business
strategy of experience and thought is that the business professionals contribute to the
organisational success. The organisation’s diversity strategy is that the organisation remain
focused on the unconscious bias, so that flexibility can be accessed and recruitment can remain
dedicated to the development of leadership. Energy efficiency is considered another significant
aspect of the organisation, Quantas. As the organisation is considered a customer of fossil fuels,
these people understand the responsibility for reducing the emissions, working with partners,
industry and it contributes to the resource limitation and environmental change.

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