Comparison between Qantas Airways and Singapore Airlines

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    Business
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    Undergraduate
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Qantas & Singapore Airlines 5

СОMРАRISОN BЕTWЕЕN QАNTАS АIRWАYS АND SINGАРОRЕ АIRLINЕS

Introduction

Qantas airway limited is the largest airline in Australia. Founded in 1920, it has grown to be one of the strongest brands in Australia due to good work as far as safety, reliability, customer service, maintenance and engineering is concerned in the air transport sector. Singapore airline, also regarded to as Singaporean national symbol is the flag bearer of Singapore and it makes use of the Singapore girl as its central figure (Binggeli & Pompeo 2002). The two airlines have some similarities as well as differences. This article will analyze and compare the two airlines in terms of their operations through leadership, obstacles, innovation and social responsibility in their governance.

Leadership

Qantas group, is led by the CEO Allan Joyce assisted by the board of directors which makes sure that Qantas has the best corporate governance. The board ensures that there is creation, enhancement and protection of shareholders’ interests in the company. The board chairman is Leigh Clifford who is an experienced business person and who has previously worked with global leading companies for more than thirty seven years (Qantas Airline 2016). Leaders in Qantas give responsibilities to their employees in terms of decision making and this has played an important role in shaping the company. Singapore airline on the other hand is headed by Mr. Goh Choon Phong as the CEO. It also has a board of directors with the chairmanship of Mr. Stephen Lee Ching Yen. The board is responsible for implementing all corporate policies of the company as well as provide relevant information to shareholders as well as other stakeholders (Doebele 2005). Leaders in different operational groups share decision making abilities with their subjects in order to uphold the company’s competitive advantage as well as motivate the workers intrinsically. Employees have the rights to question any decision made which can impact the company negatively.

Obstacles overcome

The two airlines have not been experiencing major obstacles as they deliver their services. However, in the process of delivering their services they have encountered some ups and downs. Singapore airline for instance, has tried its best to overcome the high costs incurred while delivering their services. Competition from other international airlines come up with classes that can accommodate the middle class without incurring losses. The airline industry has experienced an entry of low cost carriers, which has brought commoditization of offerings as well as overcapacity, but the airline has been able to maintain its competitive advantage (Costa, Harned & Lundquist 2002). According to Aulenbach (2007), the Qantas airline has been facing several challenges and obstacles as it operates. Some economic factors such as the increase of oil prices have been experienced but the airline has overcome without major losses being reported. The rising terrorism concerns and Tsunamis as it operates in Asia have impacted the company negatively, but it has been able to maintain its profitability and safety. It has been ranked as one of the best airline in terms of safety in the world (Doganis 2006).

Approach to innovation

The two airline companies have involved innovation and invention of new methods of attracting as well as satisfying their customers. Qantas for instance, decorate its aircraft differently to look attractive and therefore attract more customers. According to International Air Transport Association (2007) it has invested in installing various entertainment systems in their aircrafts hence making the customers satisfied. Some of its aircrafts such as Air bus A330-300 have been fitted with AVOD systems which include personal LCD screen in all classes. They have also made available TV programs for those passengers who fly for shorter distances as well Q streaming where entertainment is streamed into iPods. Their aircrafts are divided into various classes depending on the ability of the customer, therefore attracting all classes of people. Singapore airline on the hand tries to be always better than other competitors in terms of being innovative and satisfying customers. They compare their strategies with the cost involved; they spend a little but make the customers satisfied and maximize their profits. They come up with ways to increase their workers’ productivity by team building and motivation packages. They serve their customers with refreshments while on board to attract and sustain them (Heracleous & Wirtz 2009).

Approach to ethics & corporate and social responsibility

The two airlines have put into place measures to serve their customers in satisfactory and ethical manner as well as ‘giving back to the community’ Qantas for instance develops some relationships with the aboriginal community. As from 2007, 1-2 percent of its employees come from indigenous Australians. It buys some artistic designs from aboriginal arts with the aim of promoting the local community. It also promotes Australia artists as well being engaged in charity affairs (International Air Transport Association 2008). Singapore airline on the other hand has succeeded in promotion of its female attendants which is a common feature in it unlike other lines. The airline operates a reward system to acknowledge the work of its employees; it gives bonuses at a standard percentage depending on the profits earned and this helps to keep the company on toes due to informal peer pressure generated (Heracleous, Wirtz & Pangarkar 2009).

Conclusion

In conclusion, Qantas and Singapore airlines have tried their best to offer services that satisfies their customers and also increase their competitive advantage compared to their competitors. They have demonstrated credible leadership from experienced leaders as well as staff participation in decision making. There have several obstacles such as terrorism concern and tsunamis as well as increasing oil prices but the companies have overcome. They have approached innovation in a special way with the aim of satisfying their customers and make profit at the same time. Measures have been put into place by the airlines to give credible services that leave their governance as well their social responsibility unquestionable.

References

Aulenbach, S 2007, Business Deconstructed — Qantas Airways Limited, GRIN Verlag,

Germany.

Binggeli, U & Pompeo, L 2002, Hyped hopes for Europe’s low-cost airlines. McKinsey

Quarterly, Vol. 4, pp. 86–97.

Costa, P., Harned, D. & Lundquist, J 2002, Rethinking the aviation industry. McKinsey

Quarterly, 89–100. Special edition: Risk and resilience.

Doebele, J 2005, The engineer, Forbes Asia, Vol 1, No 9, pp. 34–39.

Doganis, R 2006. The Airline Business, second ed. Rutledge, Abingdon.

Heracleous, L & Wirtz, J 2009, Strategy and organization at Singapore Airlines: Achieving

sustainable advantage through dual strategy, Journal of Air Transport Management, Vol.

15, pp. 274-279.

Heracleous, L., Wirtz, J & Pangarkar, N 2009, Flying High in a Competitive Industry:

Cost-effective Service Excellence at Singapore Airlines, McGraw-Hill, Singapore.

International Air Transport Association 2007, Annual Report. IATA, Geneva. Retrieved 2nd Oct. 2016 from

201IATAAnnualReport.org/…/iatahttps://www.

International Air Transport Association, 2008, Annual Report. IATA, Geneva. Retrieved 2nd Oct. 2016 from

201IATAAnnualReport.org/…/iatahttps://www.

Qantas Airline 2016, Qantas. Retrieved 2nd Oct. 2016 from

http://www.qantas.com/travel/airlines/home/us/en?rgn