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Airline Business School Assignment-help!  
User currently offlineMadog From Australia, joined Nov 2000, 91 posts, RR: 0
Posted (14 years 12 months 22 hours ago) and read 1871 times:

hi everyone:

surprise surprise! my business management class at school are studying QANTAS in relation with Globalisation. i need help! i have a bunch of materials but i am all over the place.

1. can anyone tell me what is excatly the definition of derugulation and globalisation.

2. how has globalisation effected QANTAS? changes in management structures, increasing competitiveness etc...


9 replies: All unread, jump to last
User currently offlineILOVEA340 From United States of America, joined Oct 1999, 2100 posts, RR: 4
Reply 1, posted (14 years 12 months 22 hours ago) and read 1819 times:

no offense but if this is due tomorrow your screwed. I can't realy give you a deffinition good enough for class.

User currently offlineJet_guy From New Zealand, joined Aug 2000, 231 posts, RR: 0
Reply 2, posted (14 years 12 months 19 hours ago) and read 1814 times:

As a fellow Aviation student I know all to well the problems of last minute assignments!

Cant help you with Q-1, its to deatiled to go onto here
but q-2, you can write stuff about BA buying (i think) 25% of QF, and then the formation of basically two mega airlines in the two large alliance, star, and oneworld. The haw all the airlines involved interline all their flights to meet the other airlines. For example you can travel SYD, to CDG, all on QF flight numbers, but never get on a QF plane, and how the world is leading towards this kind of organisational structure. Not much has changed in the mgmt side though, except a few poms on the QF board. The Airlines are trying to do battle as alliances rather than seperate entities, it star vs. oneworld, rather that QF, vs UA.

Hope that helps a bit, there are heaps of good anti-globalisation websites from all those protesters at Seattle, and Switzerland where they had those big riots recently.

Roughly deregualtion means no or little government subsidies paid to the airlines by the Government to fly on particualr routes, eg you could fly from SYD to HBT, and not make any money but the government would pay you, till the point that it balanced, before derugualtion. I could be wrong on that!

Sam  Big thumbs up

P.S what Airline Business school you go to?

User currently offlineRAAFController From Australia, joined May 2001, 125 posts, RR: 0
Reply 3, posted (14 years 12 months 18 hours ago) and read 1812 times:

Hi....i think that you haveleft it late, but i'll tell you what i know.

Deregulation: Under Keating in 89? the Aust govt opened up the airline industry. The Australian National Airlines Act...in force fro 1945 was disbanded. (it was deregulated in October 1990) prior to that there was a two airline policy......which broardly stated that the two aussie airlines (domestic) TAA, later Australian Airlines and Ansett had to have similar routes, timings, prices etc. It also stipulated that there was only 1 Aust international airline, Qantas. In February 1992, the Government's 'One Nation' statement detailed an overhaul of aviation policy including an end to the artificial barrier between Australia's international and domestic air services. This let Qantas (govt owned) buy/takeover TAA (also govt owned). In June 1992, the bid was accepted and teh Aust Govt privatised Qantas. The merger of QF and TAA was finalised by Sept 1992, and the twobrands became Qantas in September 1993. Ba was successful for its bid to purchase 25% of QF for $A665 million in March 93, and the rest of QF was floated in June/July 1995.

Deregulation allowed all this to happen. It ended the old 'two airline policy' allowed future airlines such as Compass mk 1 and 2, impulse and Virgin Blue to enter the market and compete with QF and AN. It also allowed AN to become an international airline, and allowed QF tofly domestically. no longer were routes and times dictated by government regulatory approval, but by market demand.
Government also set international air fares...often being higher for AF than those of other international carriers. QF lost business to them

Globalisation: one aspect was that of the 'freedoms' of air traffic. They were postwar agreements which were govt exchanges allowing certain carriers to carry between certain places. Initially ther were just 3rd and 4th freedom acts. Ie that carrier X can only carry cargo from country A to country B, and vice versa. If Carrier X goes through country C on the way, they cannot carry cargo to from A to C or C to B. Recently the 5 freedom act came in (don't know date) which is what allows QF for insrtance to fly SYD-SIN-LHR and pick up cargo/PAX in SIN on the way to LHR, or drop off. Note, that this is still not the case, such as HKK where QF does not have the right to onflyu pax/cargo. Ie it can't fly SYD-HKK-LHR and pick up pax/cargo in HKK to take on to LHR. Might change though

Stackhouse, J. (1995)From the Dawn of Aviation The Qantas Story, Focus Publishing Sydney

Burgess, C, (1985) Aircraft, Alpine Printing, Sydney

Let me know if I can help any more. I've tried to give you as much detail as i can lay my hands on quickly.


PS. What school do you go to? I'm originally from Melb too. Good luck

User currently offlineSkystar From Australia, joined Jan 2000, 1363 posts, RR: 2
Reply 4, posted (14 years 12 months 17 hours ago) and read 1807 times:

You wouldn't be going to Melbourne High School by any chance?



User currently offlineSrbmod From , joined Dec 1969, posts, RR:
Reply 5, posted (14 years 12 months 5 hours ago) and read 1796 times:

Deregulation is the removal of government regulations to increase competition. In the U.S., the airline industry was deregulated by the Airline Deregulation Act of 1978. It abolished the CAB, who controlled which airline flew on what routes and put price controls on routes. This allowed many airlines to either grow, as in the case of Southwest, and allowed many new airlines to start up, examples such as America West, Peoplexpress, Air Atlanta, Midway, Air Florida, and countless others. Airlines now could fly nearly any route they wanted too, granted if they were about to get the route authority, and charge whatever price they wanted too. That is why you may have several airlines flying the same route, the only difference being the price in most cases. Of the airlines that started up in the early years after deregulation (for arguments sake 1979-1984), only one has remained in business unchanged by mergers and acquisition, America West. The airline industry became more competitive, and many of the startups were either run into the ground by other competition or by poor management. Many of the regional airlines like ASA and Comair started up during just prior to deregulation, but were able to grow quickly because the bigger airlines dropped flights to smaller cities that they were losing money on, example, ATL-MCN, ATL-CSG, ATL-GNV. Deregulation had its' bad sides as well, many of the new airlines that started up had poor safety and mx records, and got reputation as being unsafe (as repeated again in the 1990s with the rash of new start-ups and the crash of Valujet 592), and unreliable. People didn't know whether the airline was going to still be in business after they bought their ticket. Many of these start ups folded, leaving passengers stranded, because none of the majors would accept the tickets from many of these deregulation start ups.

User currently offlineMadog From Australia, joined Nov 2000, 91 posts, RR: 0
Reply 6, posted (14 years 12 months 4 hours ago) and read 1789 times:

i don't go to an airline business school-what i meant was airline business -school assignment!!

I don't go to Melbourne High-i think it really sucks. you see all these posh private school kids on the tram everyday and you think "what a try hard". i just don't believe in private schooling system.

I am doing Business management 3 and 4 in VCE. our teacher knows JACK about QANTAS. we have to apply all these theories in relation to QANTAS and globalisation. it sort of sucks but then it is sort of exciting.

User currently offlineSkystar From Australia, joined Jan 2000, 1363 posts, RR: 2
Reply 7, posted (14 years 11 months 4 weeks 1 day 17 hours ago) and read 1764 times:


You do realise Melbourne High School is a PUBLIC school? The pinnacle of public schooling in Melbourne - the only public school which attracts 1500 student applications per year for 330 places at Year 9. The school which has topped Business Management every year that it has been offered at the school. Believe me, they've got a good image.

Globalisation has provided QF with many opportunities, with labour cost advantages (eg. outsourcing ticket accounting to Fiji, NZ & Thai FAs, etc), market diversification (you can talk about how they pulled out of certain ports during the Asian financial crisis). Codeshares/alliances are also results of globalisation - again providing cost advantages, and opportunities to enter new markets - eg. QF flies its pax to Fiji on Air Pacific - Air Pacific has wage costs 30% lower than QF.

Deregulation also allowed QF to takeover TN (TAA/Australian Airlines), giving QF more market clout and economies of scale.

That's a simple summary of a few points, post if you need more.



User currently offlineRAAFController From Australia, joined May 2001, 125 posts, RR: 0
Reply 8, posted (14 years 11 months 4 weeks 1 day 15 hours ago) and read 1770 times:


Skystar is right. Melbourne High is a public school, or at least was a few years back when i was at school in Melb. I think you should also be careful when making generalisations about private schools as you can offend a lot of people. Besides, the people here are doing you a favour, giving info, so i don't think you should be telling people they suck, or are 'try hards'.

Sorry about the lecture, but if you can't even get your facts about whether Melbourne High is publuic or private, then i don't think you should be passing generalisations about private vs. public schools. Enough

As for your assignment. You can also talk about the fact that deregulation has led to various new entrants into the domestic market. ie Compass Mark 1, then mk 2, Impulse, Virgin blue. You can also say how it has meant that many airlines have been swallowed up by the Majors....National Jet Systems (now Airlink under the QantasLink banner), Hazelton (recently sold to Ansett).....and most recently Impulse. A lort of these takeovers have meant lower costs for the majors. take Impusle for example, flight attendants and Pilots etc are paid up to 50% less that QF employees doing the same job. Check Melbourne Age about 2 days ago for more details. This is part of the reason they are threatening a strike. Incorporate/research this more, as it is a current event resultintg from deregulation. Can also be expanded as Skystar said to Global business. Skysat mentioned about Air Pacific, adn the costs involved there. Was a good point. I'm sure you can find out more info on it.

Skystar, I'm interested in your info on the Air Pacific operating costs compared to QF, can you tell me any more/ your sources? Don't QF wet lease out 2 742's to them anyway....how is this cheaper????? Cheers

User currently offlineSkystar From Australia, joined Jan 2000, 1363 posts, RR: 2
Reply 9, posted (14 years 11 months 3 weeks 4 days 21 hours ago) and read 1750 times:

RAAF Controller,

My figures come from an article in The Age two years back, I think it's called "The Roo gets mean & lean". In regards to codesharing, one of the QF's advantages is on the Fiji route where Air Pacific crews have 30% lower wages than QF ones. Meanwhile, AN flies the route with fully paid AN crews.

QF owns 46% of Air Pacific, and Air Pacific isn't doing the best at the moment, no thanks to a Mr George Speight.



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