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Qantas and Emirate
1
...
Trust worthy, reliability,
management styles & structure, complementary & synergistic, rigorous and all that are
the very basic compatibility of partnerships
...
When
the overall opportunities and threat of both airlines are strong enough to support each
other’s, and also the overall strength and weakness are likely to address each other’s,
Qantas and Emirates started to recognize each other as potential partners
...
Meanwhile,
Emirates is having the advantage of its location in between East and West in Asia, and
flies from Dubai to just about anywhere in the world
...
By moving its European flight hub from Singapore to Dubai,
Qantas customers can connect to the extensive Emirates network into Europe and fly
directly to their destination
...
Although Qantas
posses the highest domestic market share, growing competition primarily from Virgin
Australia as trying to take a larger slice of the domestic market share is threatening to
Qantas
...
Thus, Qantas will make uses of Emirate Brand value and others
experiences
...
Meanwhile,
Qantas’ domestic network is advantage then every other airline serving in Australia
...
On the other hand, Emirate will advance
for its passengers as accessing to Qantas’ extensive Australian domestic fleet capabilities
...
Importantly, from
this joint network Emirates can also enjoy QFF (Qantas Frequent Flyers) program, which
has been a very profitable venture of Qantas, especially its point becoming a lucrative
source of profit as can sell to others partner
...
net)

Synergies: BOTH airlines’ benefits



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First of all, the major benefit they both can enjoy will be their air-fleet and so is the
award winning of A380s, since both airlines are focus attention onto more invest in and
operating very well
...
Furthermore, they both can
share the network benefits from geographically strategic partners, and in addition, regard
to maximize the strength of combined networks including accessing freight capacity
across six continents (Figure 1) networks
...
Moreover, also can
reduce turnaround time by accessing priority at terminals
...
Especially
by increasing the choice of flights to Europe via Qantas-Emirates codeshare agreement,
the both airlines’ customers access to a much broader range of air travel options flying
with the joint network, whether frequent flyer earning points or redeeming flights or
accessing lounges
...


2
...
A strategic alliance is an agreement between two or more independently
owned businesses, sharing of capacities to be more beneficial and to enhance their
competitive advantages, involving the alignment of specified services or activities, which
is mainly useful for when full control is not feasible for legal or practical reasons
...
Although alliances
can enhance efficiency and service quality, it can also significantly reduce or even
eliminate competition in certain markets
...
Meanwhile, Qantas will mainly
subjects on to enhance its competitive positioning, maintaining its dominance market and
enhancing its global branding in the international aviation market
...
Thus, Qantas and Emirates tied up under
codeshare agreement as allowing sell tickets on each other’s flights and in addition, as
supplementing by other elements of cooperation
...
Indeed, a lack of corporate understanding can
lead decision-making deadlocks that are sapping the power out of the alliance and
question its efficiency
...
In some instance, the Commission began considering the
applications against both the “reasonably capable” tests in the Minister’s Policy
Statement and the additional criteria relating to competition, trade and industry benefits
...
When the two businesses agree to do merger, means they need integrate
their assets and value chains, and also need to create new management and organization
...

As for Qantas and Emirate situation, in term of commercial as both have possessing the
strong brand value, market share, services, efficiency, reliability and all that, thus
managing the changes of post-merger for stakeholders, shareholders and the ongoing
operation will make more challenging for them
...
As the continuous result, the employees will worry about their work
satisfactions, possible sub losses of loyal customers for changing services or terms and
policies, thus possible decrease market share prices
...
Moreover, since both are being the major airlines in their regions and having
deep relationship with Government, the government policies will make more barriers to
do merger with certain very basis provisions like the head office must be in Australia,
two-thirds of the Directors must be Australian citizens, Chairman must be an Australian
citizen and so on
...
On the
other hand, positioning the properties can create the conflict because most are belong to
Government and is will affect by the government policies
...


3
...
Culture consists in collective programing of the mind, which
makes members of one group or category of people different from those of another
...
Corporate culture, so called
organizational culture is understood as a set of enterprise-wide shared values (Gattorna
2006) and it’s “the ideologies, belief and deep set values, which occur in all firms, and
are prescriptions for the way in which people should work in this organization (Harrison,
1972)
...
According to this, the power distance dimension of the two nations is
expectedly different as Australia scores low power distance, means equality exists
between superiors and subordinate, hierarchy is established for convenience, while UAE
got high score, means people accept a hierarchical order with needless of further
justification
...
Moreover, more
conflicts might exit for this partnership as one is ordering to do so and the other is
respond with complains
...
Since, they even don’t look for the same
nationality colleague, working with foreigners especially the UAE people who intend for
the group perceptive and group profits thus might create the conflicts
...
However, UAE peoples are like to challenge, they



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create new ideas, innovative the products or service, believing themselves as always on
the right truck
...
Qantas
treat its employees with fair and justice, increase employee engagement with open
relationship and informal communication, seeking advice and authorization before
undertaking an action or activity, and even support their flexibility needs
...
Moreover, Qantas group seems like having strong nationalism
because Australians are getting more opportunities and benefits within the organization
...

Presently, Qantas aims to develop an inclusive work environment accessible to all
...
On the other hand, Emirates hold unique cultural lifestyle; even can call
as policy, which is holding hands in public, swearing, harassing women with a prolonged
stare or wearing inappropriate clothing will take actions as fines or jail for cultural
misdemeanors
...
In conclusion to,
managing the cultural deal is difficult and challenging where different nations, cultures
and traditions were struggling
...
The negotiation processes are seriously needed to address from the
beginning, indeed
...
Potential long-term, strategic effects of exchange rate movements
The movements of the exchange rate are so subject to machinations of governments and
central banks, the needs of investors, the instincts of speculators and perhaps, though not



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particularly, the state of a nation's economy, that there is always large room for failure
...
Hence, the exchange rate movements so called
currency fluctuations become the matter and are significant
...

Economic exposure, the currency risk that results from exchange-rate fluctuations
affecting the pricing of products, the cost of inputs, and the value of foreign investments
...

Hence, the recognition will decrease the value of assets as in home currency terms, such
as aircrafts, fuel costs and purchases on foreign countries
...
Accordingly, the potential
long-term, strategic effect is that they both can share the supply change management
...
Same for Emirates, when AUD appreciate, they also can enjoy
the cheaper costs under Qantas’ name
...
In addition to, they both also can
enjoy sharing fuel hedging as the same way
...

Hence, the airlines of the home country might affect the flows of passengers whether
gaining or losing, on balance, and of course that of the partners are joining into it
...

However, high Australian dollar has more likely to impact on visitors’ spending once
they arrive in Australia and less impact on international visitor numbers and travel nights
...
In
term of pricing as Emirates can earn more, since they will follow the Australia currency
...
Thus, the sales will patently decrease
due to high price elastic nature of airfares, on the other hand the fares from single
markets are supporting into it
...
Qantas and Emirates are partnering under
code-sharing alliance, but the exchange rate of the time that the customers purchased and
the transaction making process that they both agreed would not be the same, thus can be
direct impact to their cash flows and profits
...
Although these affects support to be short-term as a factor in ongoing
transactions, however, overtime, can lead to be major losses for the firms
...


Conclusion
Since there is having the strong competition among the aviation industry, the two world’s
leading airlines, Qantas and Emirates partnership will surely immediate impact on one
world
...
Anyhow, they both enjoy the benefits from the exchange rate
moments by sharing suppliers, marketing, pricing and all that
...
Three specific aspects or challenges of doing business internationally
The terms internationalization is complex where there numerous barriers are waiting;
more integrated than ever and, like a virus, economic problems can spread quickly across
porous national border
...

Indeed, negotiations are in everywhere, in term of business as when the firm takes on a
partner or a supplier-buyer relationship
...
However, when cross-country,
different nation have different negotiation styles, alongside with different language,
decision-making styles, and especially cultures are in constant flux, and context
influences behavior in multiple ways
...
For instance, most of
Asian tended to emphasize an interpersonal negotiating style, stressing verbal
expressiveness and listening ability, while American focused more on verbal ability,
planning and judgment
...
However, not that
easy, surely the terms cultural will create numerous conflicts, which is highly relevant to
the implementation of negotiation strategy
...
Since, my intention is to be a regional HR manager,
such preparation processes are seriously challenges for me, because not only I have to
aware the others’ and also I have to change my original behaviors first to match
...
Therefore negotiations are
significant, however intensely complex
...
Hence, the potential partner will play in major role for to support effective
and efficient way to overcome these
...

Once the firms have selected target market, they must identify the types of partners,
negotiate terms with them, and support and monitor their conduct
...
For instance, even the large
corporation like CocaCola, when looks their market in the country like Myanmar where
there are having strong government intervention, they have had looks for the potential
partner who has deep relationship with government and someone they can control over
means surely they will go for merger for to protect their technology and rapidly penetrate
the market
...
Therefore, identifying the partner is challenging since there would
have government interventions and in addition as negotiations’ risks
...
Hence, we have to look for the employers who can create not only the
great ladder and also the way to overcome those difficulties but of course not that easy
...
Anyway, if we
have proper understanding on the situation, thereby create the strategy to overcome, and
so is internationalization, yet more challenging, but as long as we can survive the right
strategy thus we still can compete with this
...
Moreover,
Qantas is widely regarded as the world's leading long distance airline and have always
been an iconic Australian brand
...
And also operate subsidiary businesses including other
airlines, and businesses in specialist markets such as Q Catering
...

The Group's broad portfolio of subsidiary businesses ranges from Qantas Freight
Enterprises to Qantas Frequent Flyer
...

Strengths
- Being the world’s second oldest airline, Qantas airways are far ahead in experience,
operational accountability, technology and services
...

- An environmental friendly approach through group environment policy considering all
contemporary issue regarding environment for the attainment of green planet
...

- Qantas Airline has had a large market share due to its identification and the exploitation
of their competitive advantages
...




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Weaknesses
- Despite being the oldest among the airlines, Qantas airways had gone through one air
accident in almost each decade that indicated inefficiency in technically
...

- Obliviously Qantas Asia markets is having no control over any full service on carriage
beyond Singapore or Hong Kong or Shanghai
...


PESTEL
Opportunities
Political

Threat

- Stable political atmosphere in

- Government intervention

all its destinations
- Strong backing from Australia
Government
Economic

- Qantas involved in numerous

- The two domestic airlines,

alliances, importantly Qantas

Qantas and Virgin are in a fierce

was a founding member of the

battle for domestic market share,

One World Alliance of 12 major

with Qantas drawing a line in the

airlines, one of the biggest global sand, stating it would do
aviation alliances, in 1999
...


- Strong growth with Qantas

- The future holds many

Frequent Flyer (QFF)

challenges for Qantas, maintaining



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- Qantas possess own budgeted
airlines; its subsidiary airline,

viable and competitive position

Asia

long term for the airline
...


Middle East
...
Though wholly owned by the Government of Dubai, Emirates has
grown in scale and stature not through protectionism but through competition,
competition with the ever-growing number of international carriers that take advantage of
Dubai’s open-skies policy
...
Moreover, over 1200 Emirates flights depart Dubai each week across Middle
East, Europe, the North-Americas, South-America, Africa and Asia-Pacific regions
...
Emirates Airlines is a subsidiary of the
Emirates Group, which has over 42,000 employees’ from101 nationalities
...
(Emirates annual report
2012)
Strengths
- Emirates Airlines flies from Dubai to just about anywhere in the world, over 130
destinations in more than 70 countries, with a fleet of more than 200 aircraft
...
A
...

- Location of emirates is the most suitable as it lies between east and west in Asia and the
resources are being gathered very effectively benefiting emirates airlines at its first end
...

- Operating the largest business and first class transit lounges in the world at Dubai
Airport
- Emirates has become ally to the global airline alliance
Weaknesses
- Since, the fuel prices are increasing worldwide, the huge organizations like Emirates
facing the difficulties and emirates couldn’t cope with it and so theirs profits were eaten
up
...
g cargo

worldwide directly impact
Emirates as face financial
difficulties
...


Social

- Operation network

- Fierce competition from low



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- Sponsors in international

cost carriers, including China

market, a number of sports and

Airlines, Air Asia in the East

festivals

Asian region
...

- Difficulties in satisfying the
demands of the labors

Technology

- Innovative

- Telecommunication

- Frequent flyers are being given

- High operation cost

several incentives
- Techno advances of Dubai
Legal

- The domestic airline industry is - As Emirates is state owned
largely deregulated

property, and is at the edge to
be affected by the government
policies
...


Environment

- Flies center from Dubai,

- Non availability of hub in Abu

advances of Dubai geography

Dhabi

- Low emission and

- Location is politically

environmental friendly

instability, terrorists increased



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References
Parker
...
Neil, Qantas and Emirates discuss partnership, July 2012,
Available at
http://www
...
com/intl/cms/s/0/fc89ac72-d72c-11e1-8e7d00144feabdc0
...
qantas
...
au/infodetail/about/investors/2012AnnualReview
...
qantas
...
au/infodetail/about/investors/investorPresentation12
...
qantas
...
au/infodetail/about/corporateGovernance/BusinessPracticesDocu
ment
...
qantas
...
au/cargo/pdf/a_world_of_opportunities_with_Qantas_Service_to
_Dubai
...
qantasnewsroom
...
au/media-releases/qantas-and-emirates-begin-historicpartnership
Sydney, Qantas Group Market Update, Qantas, December 5, 2013
Available at
http://www
...
com
...
emirates
...
aspx



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Emirates NBD BODs, Today, Tomorrow and Beyond, Annual Report 2012, Credit from
http://www
...
com/assets/cms/docs/AnnualReport/2012/J03519%20%20Annua
l%20Report_2012_E_CMmsg
...
emirates
...
pdf
Emirates, Our Destination, Credit from
http://www
...
com/sg/english/destinations_offers/destinations/index
...
Mike, The Motley Fool, Air wars: Qantas faces new threat, November 22, 2013,
Available at
http://www
...
com
...
David, Qantas-Emirates alliance to begin April 2013, Australian Business
Traveller, Available at
http://www
...
com
...
star-telegram
...
html
O’Sullivan
...
smh
...
au/business/risks-for-qantas-in-emirates-link-20120726-22v0r
...
Brett, TheNational, Travellers stopping in the UAE need to know the rules, June
2, 2013, Available at



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http://www
...
ae/thenationalconversation/comment/travellers-stopping-in-theuae-need-to-know-the-rules
Upe
...
smh
...
au/travel/travel-news/dont-kiss-dont-swear-rules-of-a-dubaistopover-20130326-2grsc
...
Adele, BusinessDay, Qantas staff and management on collision course over
outsourcing and safety, May 23, 2011, Available at
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...
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...
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Young
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mondaq
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qantas
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global reach; Qantas adjusts partners, September 12, 2012, Available at
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...
Steve, The Australian, Qantas confirms alliance talks, Business With The Wall
Street Journal, July 26, 2012, Available at
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...
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...
investopedia
...
asp
The Drum, Buckle up for the Aussie dollar rollercoster ride, ABC, May 22, 2013
Available at
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...
net
...
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Tan
...
Tamer Cavusgil, Gary Knignt, John R

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