The following two recent articles about Qantas highlight some of the challenges the organization is currently facing. Please read these two articles and address the question as follows.
Joyce’s reform waring irks engineers - Qantas CEO Alan Joyce says out of touch union leaders are blocking reforms (Source:The Australian July 21, 2011)
QANTAS chief executive Alan Joyce has incensed the airline’s engineering union with a speech warning that a restructuring to be unveiled next month which will signal the start of tough reforms.
Mr Joyce singled out airline’s pilots and engineers as stumbling-blocks to its move to make its more internationally competitive and efficient. He described the airline’s maintenance and repair costs as “among the least efficient and most expensive in the world”and warned that out of touch union leaders were blocking new business models.
He said a pilot union push for job security would lead to Jetstar pilots being paid at Qantas rates, making the low-cost carrier unviable. An alternative option of removing Jetstar from the Qantas code share regime“would weaken the Qantas Group network and destroy jobs”.he said.
Maintenance staff were warned that they needed to follow the example of check-in staff and accept the need for change. Joyce said new maintenance regulations issued by the Cicil Aviation Safety Authority to bring Australia into line with Europe recognized the enormous advances in aviation technologies. “The vast majority of people within our business have helped us to maximize the capabilities of these aircraft in terms of fuel efficient flying techniques and new product and service offerings,” Mr Joyce said. “But our maintenance and repair costs are among the least efficient most expensive in the world. “So it's time to catch up. We don't repair our cars the same way we did 40 years ago. We can't repair our planes the same way either.”
Mr Joyce singled out a push to stop licensed engineers from doing