Service Quality: Qantas Airlines

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Qantas Airways in Australia is the biggest airline worldwide by the number of international flights, destinations and size of its fleet.

This airline is the third-oldest and was founded in 1920. It started its journey with international flights back in 1935.

Its base is in Sydney.

The airline has approximately sixty-five percent of Australia’s domestic markets. It carried about 14.9% of Australian passengers in 2014, according to reports.

Many other subsidiaries airlines operate on various routes in the region under the same brand.

Since 1920, the airline has entered into several business agreements with international brands that have helped it grow its business internationally.

Qantas formed a joint venture with Imperial Airways of Britain in 1934. This company was known as Qantas Empire Airways Limited. It used to fly between Darwin and Brisbane.

The company also participated in joint ventures with British Overseas Airways Corporation.

Qantas merged with Australia’s national carrier in 1992 and started its rebranding.

Gradually, Qantas was privatized. According to the legislation, 51% of the airline’s share must be owned Australian shareholders.

The airline offers exceptional in-flight service, as it has installed many video audio entertainment systems.

Panasonic Avionics also provides audio or video-on-demand facilities.

You can enjoy a number of entertainment programs on flights. The longer flights show movies, while the shorter flights have TV programs.

Wireless internet access has been available in all classes of Qantas since 2007.

Customer Relationship Management

A company’s customer relationship management must consider both productivity and quality. Quality is about potential benefits to the customers, while productivity is about financial costs.

Qantas Airways has all its subdivisions, including human resources, operations and marketing, working together to achieve the company’s quality and productivity improvements.

However, there have been severe problems with customer relationship management in the past.

2010 saw a major failure of the flight engine.

In 2010, three Qantas engines failed in consecutive months. These failures were in August, September, or November.

This huge setback has caused internal problems within the company between workers and unions.

This conflict led to cancellation of numerous flights and harassment of more than sixty-eight million customers.

For these setbacks, the company was also subject to negative social media shaming.

The company might need to redesign customer relations management and handling customer complaints.

Customer relationship management requires that the company determines the gap between consumers’ expectations and actual service. This is done using the GAPS Model.

This model was developed in 1985 in order to understand the customer gap.

Kumar 2012: The consumer gap is an indicator of how satisfied customers are.

It is important for companies to determine what the cause of the current consumer gap is.

The company must identify the exact reason for the gap. There may be many causes.

In this instance, the primary reason behind the customer gap was that Qantas could not meet the primary requirements because of internal conflicts.

Qantas may reduce its prices for future flights in order to provide customers with a different experience at a lower price.

The company must respond quickly to customer complaints so they can reach customers as soon and as efficiently as possible.

A lot of negative publicity was generated by the constant mishaps on the flights.

The company even started a hashtag to discuss luxury flights, but it faced a huge negative public reaction.

Their entire complaint handling department was at risk.

The company should respond to every customer personally, regardless of negative press.

Basfirinci & Mitra 2015 recommend that the company is patient when dealing with complaints, and be completely unaffected by criticism.

Customers should be given the attention they deserve so they know their concerns are being heard.

It is important that the company does not try to generalize complaints, even if they have dealt with similar issues before.

It is important to be patient with all problems in order to resolve them effectively.

Bibliography and Reference Book

Allred A.T. and Addams H.L.

Customer reviews about bank and credit union service quality.

International Journal of Bank Marketing.

Basfirinci C. and Mitra A. (2015)

Cross-cultural analysis of airline service quality via integration of Servqual & the Kano models.

Journal of Air Transport Management, 42 pp. 239-248.

Knox, S.; Payne, A.; Ryals, L. Maklan, S. and Peppard J.

Customer relationship management.

Customer relationship management.

John Wiley & Sons, Ltd.

Wu, H.C.; Cheng C.C.

The hierarchical model for service quality in airline industry.

Journal of Hospitality and Tourism Management 20:13-22.

Service Operations and Management

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