Global Recession

As global recession is going on across the world, it has become difficult for international airlines to provide its service considering the inflating prices of aviation fuel. There have been vivid changes in aviation industry on the basis of its repairs and maintenance carried out. Similarly to save costs and at the same time make profit from business by saving time and money Chief Executive of Qantas recently mentioned his plans for his company and the way to deal on-going problems. Mr. Joyce said that its airline's pilots and engineers are becoming uncertain hindrance to its move to make the airlines more competent and efficient internationally. He also said that maintenance and repair costs are extremely costly, for that he wants to propose a new business models but is being opposed by out of touch union leaders. As an example to mention he said that if pilot union pushes pilots for security of job, the company may end up paying Jetstar pilots as much as Qantas which wont be feasible for the company. In the above statement he cleared the hindrance from the union. He explained another problem that they cannot destroy its low cost carrier as it may weaken Qantas group's network and destroy lot of jobs. He said that to catch up with European standards Civil Aviation Safety Authority of Australia is trying to follow similar model. This is still not proving too helpful as the their maintenance and repair costs are expensive but on the other hand it helped him maximize fuel efficiency by offering service, new product and flying techniques. In his interview he also said that the aircrafts use State of the Art Systems so they don't need maintenance and repair every now and than as they required 40 years back. So to cut the costs he wants the pilots to do a transit check instead of special engineers, which is allowable under CASA's new regulation. He was criticized for this plan by a statement - "He'd rather take his chances that nothing goes wrong at 40,000 feet."

Qantas refuses to rule out job cuts to increase its profits internationally and to takeover the passengers lost by Tiger Airways because of its grounding. They avoided making pilots jobless during the global economy crisis by asking them to take an annual leave that led to reduction in their leave balance. Chief executive never gave a clear idea if they were going to start job cuts rather put it on its strategic planning team. In short it will focus on partnerships, cost cuts and future investments in Asia. To cut costs it arranged negotiations with unions but it did not prove to be fruitful and demands were unrealistic and would be a loss to company in their international business. As the airlines was going through dramatic hitches of union problems and rising fuel prices, the company lost one third of its share prices. Nevertheless the company roared back with a strategic plan of starting a budget airline called Jetstar and frequent flyer