Aid For Airline And Its Impact On The Tourism Industry

Aid for Airline? Qantas airlines are an iconic Australian business, which has heavily shaped the tourism industry. However in the 2013-14 financial year, (Qantas, 2014, pg.1) due to falls in revenue, growing competition and high expenses the airline reported a 2.8 billion dollar loss. (Mccrann, 2014) It was then that the company felt it required government support to assist them in getting back on their feet. Commonly referred to as a â€Å"bailout† and in this case more specifically a â€Å"debt guarantee†, this would involve the Australian Government covering Qantas’ debts, should the company collapse. (Mcllroy, 2014, p9) There were mixed views on this particular issue between different MP’s, different political parties and against Qantas itself. After much debate on the issue however it was declared that the Government would not grant a debt guarantee to Qantas. (Coorey, 2014) This essay takes into account both sides of this debate and explains why the ultimate decision by the Government not to financially support Qantas was justified. From July 2013 to July2014, Qantas reported a statutory loss of 2.84 billion dollars (Qantas, 2014, p1) and job cuts of approximately 5,000. (Boyle, 2014, p3) According to some commentators continued decline of this scale would bankrupt the airline. (Mccrann, 2014) There are several explanations as to why Qantas was struggling so much to remain profitable. One being an increase in fuel costs of 6 per cent ($253 million). (Qantas, 2014, p1)ThisShow MoreRelatedImpact Of The Internet On Global Commerce1281 Words   |  6 Pagesproblem here is that if you don’t get there first with the new idea you may face significant challenges in entering the marketplace. Many global market forces directly impact these brick and mortar establishments as well as service related industries. Technology is one such factor that has had a major impact on just about every industry. The internet has forever changed global commerce. Other global factors include terrorist attacks such as those that took place in Paris and Belgium in 2015. This impactedRead MorePost-Communist Transition Economies Touched by the Euro Zone Crisis1360 Words   |  6 Pagesunsuccessful companies operating in European Union. The positive Unfortunately the collapse of Malev Hungarian Airlines, who has ended its operations in the beginning of 2012, was mostly caused by its debt to which Hungarian government was not able to pay anymore. By the high decline of tourism during couple of yeard under Euro Zone crisis, airlines lost most of their clients peremptorily. 2. The impact of the Euro Zone crisis on post communist transition economies Transition economics is a special branchRead MoreDelta Air Lines, Inc.1408 Words   |  6 PagesAir Lines, Inc. is a provider of scheduled air transportation for passengers and cargo throughout the globe while based primarily in the United States. Despite extreme competition, Delta maintains its strong market position on the global scale. The airlines began operations in 1928 as a small local US based air Transportation Company aimed at providing reliable travel. This paper will discuss the management functions utilized that have helped Delta pursue in a future time period and how those objectivesRead MoreTourism As A Source Of Revenue Managing Destinations Essay1644 Words   |  7 Pagestoday’s competitive economies and with growth of tourism as a source of revenue managing destinations is an important and integral part of controlling tourism’s environmental impacts and promoting sustainable tourism in the region. Destination management includes planned business permits to organizations, land use planning, environmental and other regulations and various other methods for the development and operations of activities related to tourism. According to UNWTO â€Å"The programme for DestinationRead MoreThe Growth Of The Aviation Industry1768 Words   |  8 Pagesexamine the growth of the aviation industry, the changes and developments that have transpired, the implications of this changes and how it has affected the demand for a ir travel. Also, with evidence from current research materials, this essay will show how future innovations will impact commercial aviation. Aviation or Air travel began as far as the 6th century, where the Chinese and the Greek used kites and other primitive measures to attain flying. This industry has gone through some historicalRead More Impact of Terrorist Attacks on Tourism and How to Prevent Acts of Terrorism3146 Words   |  13 Pagesshocked, devastated, and furious. Many innocent American’s lost their lives on this infamous day. While airports and airlines are not free from security breaches, a set of new security measures and requirements have been implemented by the International Air Transport Association and the International Civil Aviation Organization (Beirman, 2011). Increased security at airports and airlines, have left terrorists to target more vulnerable areas such as tourist destinations. Attacking tourists’ spots suchRead More Severe Acute Respiratory Syndrome in Taiwan2041 Words   |  9 Pageshit the world, including Taiwan. The unfortunate pandemic shattered Taiwan’s tourism in dustry and the nation’s image of a safe tourism destination region, thus affecting Taiwan’s economy. The Taiwanese government, as well as others that were affected, placed restrictions of varying stringency on domestic and international travel due to the cases of SARS. Therefore, precautions were taken and Taiwan’s global travel and tourism system deteriorated. Having Japan and Hong Kong as Taiwan’s two main sourcesRead MoreDiagnosing The Change : Managing Organizational Change Essay1413 Words   |  6 Pagesto the organizational performance. For my research project, both airlines Delta and United Airlines have environmental factors that have affected their performance. Jet Fuel prices have driven up the operational cost of both companies. Internal factor such as unions and employee issues have impacted the both the airliner’s performance and have also impacted the top line and bottom line of these two merged companies. Both airlines have had to m ake some tough decisions in terms of downsizing employeesRead MoreBombing Of The National Security1560 Words   |  7 Pagesanalysts believed that with the six Federal Rate cuts, the United States economy could avoid recession. Then came September 11th an attack that shook the nation. Never had an attack been made on United States mainland soil. Two United and two American Airline airplanes were hijacked by terrorists and flown into strategic targets in America. There were at least four to five hijackers on each plane. They were armed with knives, and having at least one person among them capable of piloting the plane. TheRead MoreAirline Pest Analysis2691 Words   |  11 PagesIntroduction Ryanair is headquartered in Dublin, Ireland and operates a low-fare, no-frill scheduled passenger airline. Ryanair serves short-haul, point-to-point routes between Ireland, the United Kingdom, and continental Europe, making Ryanair Europe ¡Ã‚ ¦s largest low-fare airline. It has destinations in 13 countries with 76 low-fare routes. Its fleet consists of 21 Boeing 737-200s and 21 737-800s. Launched in 1985, Ryanair ¡Ã‚ ¦s growth has been extraordinary. Ryanair currently employs a team of 1500