Case Study: Qantas Airlines: A customer’s perceptions
[Source: Lovelock, C., Patterson, P. & Walker, R. (2004) Services Marketing: An Asia-Pacific and Australian Perspective, (3rd Ed.), Pearson Prentice-Hall, Sydney, pp 494-495.]
Background
The experiences of a middle-aged, business traveller returning from one of many overseas trips with Qantas in recent years is detailed below. This time he is returning from Los Angeles to Sydney after being away for 10 days on a business trip. The following case relates to his experiences on the flight returning from the United States, recorded immediately after the fight.
The Flight from Los Angeles to Sydney
Approximately two hours flying time out of Sydney, the captain of the Qantas flight (QF12) informed the passengers (half of whom happened to be American tourists coming to Australia for a visit) that we would be delayed two hours because of bad weather in Sydney and there was a possibility that we may even have to fly on to Brisbane if we couldn’t land in Sydney. About one hour out of Sydney, we were informed the flight would be going direct to Brisbane. Upon arriving in Brisbane and letting off some passengers, we put up with a 90-minute delay before starting off to Sydney. The Qantas Boeing aircraft then circled Sydney Airport for some 45 minutes, until the captain informed us that weather conditions would not permit a visual landing – Qantas pilots are not permitted by law to do an instrument landing. We were told that we would have to fly on to Melbourne, which we promptly did.
All passengers disembarked at Melbourne’s International Airport and were told to stay in the transit lounge where we would be looked after. Nobody was told how to get to the transit lounge – there was no Qantas employee in sight to direct 300 very tired passengers to where this transit lounge, which we were supposed to be herded into, was located! Of course, by this time everybody was tired after a 15-hour flight across the Pacific plus a one-hour detour to Brisbane, another one hour to Sydney, another 45 minutes circling Sydney and another one-hour trip to Melbourne. We had already spent something like 18-20 hours in the air, so you can imagine how I felt – pretty tired, pretty annoyed, pretty stressed out. Upon arrival at the transit lounge at Melbourne’s International Airport, the situation was explained to us by what appeared to be a relatively junior and somewhat inexperienced female employee of Qantas. It was explained that Qantas at this point were not sure when they could get us to Sydney due to bad weather conditions that were beyond their control. By this time some of the passengers, particularly the American passengers, were getting quite annoyed, because they had connecting flights or some other arrangements in Sydney, or had people waiting for them. Consequently, some of the passengers were getting a bit edgy.
The passengers were then informed that they would be given a $7 food coupon, which they could use in the cafeteria, some 50 metres away, to buy food or drink to the value not exceeding $7.
So, I went to the cafeteria with my $7 coupon and to my annoyance found that a $7 coupon in an international airport lounge is lucky to buy you one cup of coffee (where they probably charge you extra for the sugar!). Having ordered a small sandwich and a cup of coffee, I found that it came to $8.50. Not having any Australian money on me I said, “what do I do?” The woman serving said, “you will just have to pay”, so then I exploded – I went from a passive to a very aggressive state in an instant. I told her I had no intention of paying and that the passenger before me had only in fact spent $5 or their $7 coupon, therefore the organisation (that is, the cafeteria) was ripping people off and making a profit. She wasn’t happy about that, and about me getting aggressive, so she got aggressive, so I got aggressive and told her, “you can do what you like”, and walked off with my sandwich and cup of
plug the holes as they appear you will buy extra time to address the source of the problem, but soon the structure itself will become too weak to do its job. Customers are like flood waters in that they will flow along the easiest path, or in this case, they are attracted by the newest fad. Honestly, it will be too time-consuming to chase and identify why each customer is leaving. Therefore, the group decision technique used should be somewhat expeditious and definite in finding solutions to the…
1.0 INTRODUCTION Qantas is Australia’s largest airline with its oldest continuously operated airlines in the world. (R) As was established by four men at first with simple biplanes that can only carry 2 or 3 passengers, Qantas now developed into a world's leading long distance airline and standing out of the strongest brands in Australia. Qantas also developed several promotional programs and services with its committed staff and won loyal customers. Qantas would continue to develop while facing…
Qantas is the world's second oldest airline, having been founded in the Australian outback in 1920. It is Australia's largest domestic and international airline. The name comes from the initial letters of the words in the original registered title—Queensland and Northern Territory Aerial Services Limited. The Qantas Group employs approximately 32,500 people and operates a fleet of over 250 aircraft, comprising Boeing, Airbus and Bombardier aircraft from full-size long-haul aircraft to smaller…
Since Qantas has perfect information about each consumer’s willingness to pay (WTP), it engages in first-degree price discrimination (PD) (Guillen 2014). The firm charges each consumer their exact WTP for an undifferentiated product, extracting the largest possible payments from consumers. This occurs on the conditions that Qantas has market power to adjust prices and prevents undercutting via the reselling of tickets from low- to high-price consumers (arbitrage). With this strategy, Qantas sells…
Catanzartiti and Kane (2012) “captured the interest of the mainstream press more than any other case during 2011”, was the Qantas Airways Limited (Qantas) dispute”. The Qantas dispute involved varying parties. These parties included Qantas employees and their representing unions, Qantas Management, the Minister for Tertiary Education, Skills Jobs and Workplace Relations and Fair Work Australia Qantas employees consisted of pilots represented by the AIPA (Australian and International Pilots Association)…
Understanding organisations – Case Analysis MMM262 Matthew Acciarito Contents: Introduction - 3 Modernist Analysis – 4 Environment - 4 Social structure - 5 Technology - 5 Culture - 6 Problem Statement - 7 Solutions – 7/8 Symbolic – Interpretive Critique - 9 Post Modern Critique - 10 Conclusion - 11 Reference List - 12 Introduction Qantas is the world’s second oldest airline, founded in the Queensland outback in 1920. The organisation has dominated…
Qantas Executive Statement: Established in 1920, Qantas is the world's 11th largest airline and the 2nd oldest. It was founded in the Queensland outback as the Queensland and Northern territory Aerial Service (QANTAS) Limited, by pioneer aviators Hudson Fysh, Paul McGinness and Fergus McMaster. Qantas was a former government owned business; it did not view profits or efficiency as its prime goal. In 1993 a 25% stake was sold to British Airways. Qantas was privatised in 1995 and has had to adopt…
Executive Summary Qantas Groups’ performance over the 2007 to 2011 period has been relatively poor mainly as a result of the global financial crisis adversely affecting the firm’s international operations. Strategically, Qantas is likely to continue to dominate the domestic airline industry with the success of Jetstar prompting expansion into the Asia Pacific region. The most significant threats facing Qantas include high fuel prices, the value of the Australian dollar and industrial action. A comprehensive…
UNIVERSITY OF TECHNOLOGY Student Name: Ahmed Hassan M Arafshah INF10003-Introduction to Business Information Systems Qantas trials new check-in technology Introduction: Qantas Airways Limited is an international and domestic airline based in Australia. It is as same as any airline organizations want to develop their systems' by analysis of competitive forces surrounding Qantas as an organization, according to Creedy (2010), is to think about how can to do to decrease queues in counter customer…
sometimes caused problems, for example, the Qantas case. Qantas suffered $244 and $246 million loss for the year 2012 and 2013 respectively (Qantas annual report 2012 & 2013). Currently, Alan Joyce-the Qantas’ CEO, announced a $2 billion cost reduction program including 5000 job cuts, 50 aircrafts to be sold and $1 billion capital expenditure review (The daily telegraph 2014). This problem was caused by the uneven Australian aviation rules between Qantas and other airlines companies. Virgin Australia…