Qantas Essay

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1 Case Facts Qantas was founded in 1920 operating an airline between Queensland and the Northern Territory. However, today Qantas delivers domestic and international services to 170 destinations across 40 countries and is ranked amongst the world’s leading premium airlines. Qantas has become Australia’s largest domestic and international airline employing 36,000 people, of which 93 per cent are Australian based. (Qantas 2012; CEO Cook Off 2011). In 2007, Qantas pushes forward with an aggressive expansion into the Asia-Pacific region. Geoff Dixon the Chief Executive Officer (CEO) believed the company needed to take advantage of the opportunity in the region and became an indispensable part of their growth. (Flottau 2008). Dixon led the company through a fundamental transformation, shifting the company from a national airline to a leading international carrier, before resigning in November 2008. Alan Joyce became the replacement CEO, after successfully leading Jetstar (a subsidiary of Qantas) in the establishment of a low cost airline servicing domestically and internationally to the Asia-Pacific region (Qantas 2012; CEO Cook Off 2011). Joyce took over after a strong and successful period, although industry analysts believed the period ahead for Joyce was going to be rough with rising competition, costs, wage pressures, higher capital and a weakening economic back-drop (Flottau 2008). From 2008-10 pressure began building for Qantas as shareholders lost confidence in the company’s ability to maximise profits. In 2011 the airline’s stocks were wiped by 8% and group net earnings slumped 72 per cent triggering the Qantas Board to withhold shareholder dividends for a second consecutive year. (Gold Coast Bulletin 2010a). The company’s bottom line was also hit hard from the European volcano eruption costing $46 million. (Gold Coast Bulletin 2010b). Qantas’

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