A Comparative Operations Management Report: Airbus vs. Qantas Airways

This report provides a comprehensive analysis of the operations management strategies of two major companies: Airbus and Qantas Airways. It begins by introducing both organizations, highlighting their key operations and market positions within the aerospace and airline industries, respectively. The report then delves into the findings, examining the customer benefit packages offered by each company and analyzing their value chain designs, including inbound logistics, procurement, and supply chain processes. Furthermore, the report explores the strategic visions, competitive priorities, and advantages and disadvantages of each company's approach. It concludes with recommendations for improvement, focusing on enhancing customer loyalty, optimizing supply chain management, and strengthening competitive positioning. The analysis draws upon various sources to provide a well-rounded perspective on the operational challenges and opportunities faced by Airbus and Qantas Airways.

Running head: OPERATIONS MANAGEMENT
Operations Management
Name of Student:
Name of University:
Author’s Note:

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List of Illustrations
Figure 1: Overview of Value Chain of Airbus................................................................................8
Figure 2: Supply Chain process of Airbus.......................................................................................8
Figure 3: Qantas Airways Value Chain.........................................................................................10

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Table of Contents
Introduction......................................................................................................................................3
Findings:..........................................................................................................................................4
Analysis:..........................................................................................................................................9
Recommendations:........................................................................................................................10
Conclusion:....................................................................................................................................11
References......................................................................................................................................12

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Introduction
The study has been able to consider the two organisations namely Airbus and Qantas
Airways. This Airbus organization has been considered as leader in aerospace industry. The
main operations of the company have been further seen to be associated to the company based on
the design deliverables associated to the aero space products. The company is further seen to
consider the manufacturing and design process at a global scale. As the company has been
further considered as the leader in commercial aircraft, it has been recognized with the largest
space and aeronautics organization in Europe across the world. It has been further observed that
the company has been seen to be considered as European heritage and situated in 180 locations
with 12,000 direct suppliers located globally. The final consideration for the assembly lines is
seen to base on the aircraft and helicopter operations located in Europe, Asia and America. Till
date it has been seen that the company has been able to generate total revenue of € 66.66 bn in
2016. This has been further identified with a total increase of 3% in compare to 2014
(Airbusgroup. 2017).
The operations of Qantas Airways have been identified as a flagship airline carrier
in the world in the international destinations. This has been further seen to be considered based
on the destinations, size of the fleet and international flight. The airline operator has been further
has been further regarded as the third oldest airline carrier preceding KLM and Avaianca. Some
of the main consideration of the Company has been seen to be operational based on the
operations of 1920. The company has been first seen to start its operations in 1920 and took its
first business flight in the year 1935. The operations of Qantas have been seen to locate in the
suburb of Mascot along with the main hub being located in Sydney Airport. The primary

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subsidiaries of the company have been seen to be considered within Australia under Qantas Link
(Qantas.com. 2017).
The main consideration made in the report has been able to address on the aim for both
the organizations. The important considerations made in the report have been showed based on
customer benefit package and value chain analysis. The important aspects of the study has been
further able to show the different types of the considerations made in the report related to the
strategic vision and operational strategy.
Findings:
The company has been used to understand the various benefits of the customers and the
organizations as an individual. It has been further able to focus on the value chain with various
benefits and drawbacks.
Customer Benefits Package:
The customer analysis has been based on understanding the important aspects of
individual organization and benefits of the customers. It has been further bale to focus on the sub
section of operation management and considered two important business aspects (Turegeldinova
2014).
The various types of results associated to the study have been further able to state that
Airbus has been recognised popularly globally. The appreciation from customer and the loyalty
has been able to gain considerable customer appreciation even during recession and the various
types of downswing in the economy. In some of the other regions apart from Australia, the
customers of Airbus have been seen to be most satisfied in nature. Airbus is seen to launch store

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card for accessing the various customer information and automatic rewards, additional cards has
been able to consider for the supplies to Singapore Airlines, Emirates, and Qantas. It has been
regarded as self service of Airbus. This consideration has been related to the protection of the
lost cards. This has been also regarded as the due convenience of the customers and has been
able to launch store card for accessing of customer information. This has been further seen to
comprise of various types of automatic rewards and additional cards considers the supplies to
other airline operators (Watson et al. 2015).
Qantas Airways has been able to contribute significantly in terms of economy in
Australia and the customers have been able to get benefited with the operations. The airline
company has been seen to supply different types of provisions for economic flight fares along
with various types of special facilities. There was company has been further seen as a greater
connectivity to the portfolio, standardise improvement and safety of the passengers. So the other
types of benefits of the company have been seen to improve the customer loyalty and employees
at the same time (Wu, Guo and Shi 2013).
Value Chain Design:
This design has been based on the various types of vital aspects such as company
structure and in understanding the different types of internal activities of particular firm.
The depression of the value chain for Airbus is seen to be based on providing the best
services and supplies to its customers.

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Figure 1: Overview of Value Chain of Airbus
(Source: Fujitsu.com. (2017)
Figure 2: Supply Chain process of Airbus
(Source: Airtn.eu. 2017)

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The activities associated to the Airbus value chain has been able to concentrate on
convenient customer experience. It has been further seen that the main function of the value
chain has been seen to be based on the following factors:
In-bound logistics
The inbound logistics is fully seen to be managed by Airbus as the company has fully
taken the responsibility of owning the products. It has been further seen that the company is able
to successfully control the distribution of the various associated products (Andreassen and
Lindestad 1998).
Procurement and logistics:
The different types of stringent laws associated to the company have been further able to
concentrate on the reduction of issues associated to the produce. In addition to this, the suppliers
are seen to be trusted with the various types of activities which involve labelling and packaging
of the materials.
The value chain of Qantas Airways has considered various cost efficiencies for the
overall implementation of different opportunities. Considering the varying demands of the
customers at Qantas Airways there has been always a latent capacity identified which is
increasing (Javad Kabir et al. 2013).

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Figure 3: Qantas Airways Value Chain
Source: (Aircraftit.com. 2017)
The significant degree of flexibility is needed to various types of onshore projects has
been seen to be implemented based on technological advancements and the level of safety.
Advantages
The various types of noted benefits associated to Qantas Airways are listed below as follows:
 The flexible strategic tool used for overall business outlook has been fully considered
 The organisation is successful in assisting addressing of various types of existing
problems
 SWOT analysis process has been customised
 There is a possibility of making industry value chain to grow

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Disadvantages:
 The various types of flexibility associated to the designated business needs to adapt to the
overall value chain process
 It has been further observed that only a handful of the exports has been able to family
arrived themselves with the value chain process
 The understanding of the different levels of the strategic scenarios has reduced over the
years
 In several occasions it has been observed that the company has not maintained that
appropriate business structure
Analysis:
Strategy and Strategic Vision:
The important strategy considerations of Airbus are as follows
 Formation of single team
 building of cohesive strategy for brand promotion
 process announcement and cost reduction
 stores refreshment
 Updating of product offering
The process associated to corporate planning of Qantas Airways has been further seen to
consider the following principles which are stated below:
 Board ownership in terms of overview and strategic priorities
 Alignment and integration with consistency in the business formed with corporate plan

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 Prompt the engagement of policies based on functions of marketing and a presence
 Formulation of strategy for short-term as well as long-term planning
 Enhancement of the overall impacts of short-term shocks and improving the robustness
associated to the long-term events
Competitive priorities:
Some of the main considerations of Airbus are seen to be associated with rising number
of rival forms such as Boeing, Bombardier, Mitsubishi, COMAC, Embraer and Irkut. However
despite of the increasing competition Airbus remains a favourite among various airline operators.
Due to the factors such as recession, efficient and partial prosperity of Airbus has not been seen
to be getting affected. Moreover, the company is seen to be only high amount of loyalty to its
customers (Germann et al. 2014).
The primary source of the data associated to complete an advantage for Qantas Airways
Qantas Airways has been found in economy and diversity of the flights. The main focus has been
further given on reducing operating costs and improving on the core investment in customer
service along with reducing the capital expenditure.
Recommendations:
The main recommendation to the Air has been seen to be on matters related to installation
of A380’s electrical systems in use aircraft carriers. It has been further asserted that the company
should reduce the cash flow. The primary focus of the Airbus has been given to the suppliers and
hence it should improve to regain the loyalty of those suppliers buy products at this price. Some
of the other focus needs to be given on the various types of demands and development policy of

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Airbus. The main considerations of the company have been seen with delivering of new products
with improved experience for the various types of airliners (Räikkönen and Honkanen 2013).
The main considerations for Qantas Airways have been seen to be associated with the
villagers of production facilities along with its services. There are should further give emphasis
on providing better service to the passengers and improve its existing amenities. In addition to
giving economic flight the company should also emphasise on giving special facilities to the
customers and build on customer loyalty programs. The aforementioned strategies will be
conducive in increasing the overall profit margin and customer base of the company. The
different types of dealerships of the company have been seen with various types of
establishments with the renowned companies and this will be beneficial to the company in terms
of minimising the cost (Miller and Mork 2013).
Conclusion:
The study has shown that both companies have been seen to fight global competition in
an effective manner. The individual companies may consider the unique collaboration of
services, customer base and special facilities. The prices of quantity levels and consumer goods
have been seen to be worth emphasising on for global dominance.
With much emphasis on Airbus it can be said that the company is effectively managing
the sourcing of suppliers irrespective of its positioning in Australia. With different types of
subsidiaries and provide economic flights it has been seen that Qantas should build on
developing a fair to share its knowledge and continue building on the optimisation process.