Business Report Qantas Airways

transmission line REPORT ON QANTAS AIRLINES Hasblady Leon Ramirez (Sofia) Student No 31278 Class BAE 10 16th January 2013 slacken OF CONTENTS administrator SUMMARY3 1. INTRODUCTION4 2. QANTAS respectable EVALUATION5 2. 1. Airlines asylum as an respectable Issue5 3. QANTAS fate harm EVALUATION6 3. 1. piece footing Definition6 3. 2. Share scathe expression 20126 3. 3. Share Price business sexual congressship7 4. Recomm block offation8 REFERENCES9 EXECUTIVE SUMMARY The aim of this report is to guess whether Qantas airways is a adequate ships companionship for honourable enthronisation.Firstly, Qantas has currently been incurring in an honorable issue, because it has reduced in almost 50 % its round in order to begin break out profits, however, the flight preventative has been unnatural delinquent to this attention retrenchment, also Qantas appoint expenditure outline determines that although the stock had a downturn terce old age ago, it has begun to s how up now. However, the result of this report is that, Qantas is not an subimputable companion to invest now due to the low role legal injury manner and fear planes issue. 1.INTRODUCTION The take aim of this report is to evaluate whether Qantas airways is a suitable caller-up for honourable investment. This evaluation is officed in two aspects, ethical put and voice set mathematical operation in order to make a tribute to clients. Currently, companies have begun to make terminations on butt to moral assumptions such as, social consideration, environmental concerns and ethical reporting with the purpose of selecting ethical investment and achieving a competitive fiscal return (Schwartz 2003, p. 95). According to Michelson, this recent fashion is called ethical investment (Australia and United Kingdom) and socially responsible investment ( United States) and this is a main topic in the fiscal industry due to the gained importance during the terminal years (2004, p . 1). Qantas is the largest domestic and international skyway that was established in Australia in 1920. Now, Qantas is a business group of customers transportation, which is formed by two completing air duct brands (Qantas and Jetstar).The business group employs 35,700 mickle and 93% of this amount is keisterd in Australia (Qantas 2012). This report is divided in three main points, firstly, analyzing an ethical issue restrictingly safety flight on petty(a) of airplanes restrict. Secondly, evaluating the contribution footing history and how the share scathe doings, and finally, it give a passport to the shareholders in order to acknowledge the caller. 2. QANTAS ETHICAL EVALUATION This report discusses the airline safety in terms of maintenance.Currently, companies search to make up profits and reduce costs and a common way is a downsizing in an operational process. Qantas reduce the maintenance staff to obtain a better proceeding and profits however it threatens th e rider integrity due to the low performance maintenance into airplanes. 3. 1. Airlines Safety as an good Issue Qantas has reduced viosterol technology telephone circuits in Sydney and Victoria (Herald sunbathe 2012, para. 1). In Sydney that happened because the airline believes that, it had an all oversupply of line maintenance engineers.Lyell Strambi, who is Chief Executive of Qantas domestic operations, verbalize that, the cost of its heavy maintenance was more than than 30% higher than others airlines, and Qantas needed to close the difference to ensure its future viability (Herald Sun 2012, para. 17). The Australian Licensed Aircraft Engineers Associations said that, the airplane maintenance has been stirred by changes and reductions of maintenance staff without previous stake analysis (Crikey 2012, para. 2). For ex amperele, in a Qantas flight come by means of year was found a ? endure crack? n a turbine on the Boeing 747-400 that led to an explosion in the aircra ft labor while it was in the air, the aircraft landed safely and all passenger were safe (News. com. au, 2012, para. 2-3). The company is the company is reducing costs towards better profits and make the company workable in the future however the decision to reduce maintenance costs and staff have affected flights safety thereby leaving at unnecessary risk to passengers. Finally, Qantas is currently involved in meaningful safety problems that have directly affected the client? s decision making. 3. QANTAS SHARE PRICE EVALUATION . 2. Share Price Definition The share expenditure and the investment are the methods connected to neoclassical investment models, those models study the options that the company has to improve the performance in the future (Andersen, Subbaraman 1996, p. 1). The share price model is to analyze all aspects which lot information about the future expectations of a company (Andersen, Subbaraman 1996, p. 1). 4. 3. Share Price Behavior 2012 In terms of evaluate the Qantas share price, this report has been made on the base of price variances which are illustrated in the on a lower floor chart.It can be analyzed through to the share market appearance and the full stop of sentence. Chart No. 1 (Australian Securities interchange 2013) http//www. asx. com. au/asx/research/companyInfo. do? by=asxCode&asxCode=QAN The graph number 1 present Qantas share price behavior over the medieval year. On the graph, the Y bloc indicates the share price in points and the Y axis represents the period of time in months. The graph shows that, since beginnings of 2012 the QAN (Qantas Airways) share price rose slightly in 1. 800 points in March, then in April and may the share price fell slowly in 1. 00 points, after in mid-June, due to the massive downsizing, the share price decreased to spend less than 1000 points, however, in the end of June the price increased rapidly in almost 1. 200. After the events in June, the share price has been slightly in creasing over the six last months, and the current price is almost 1. 600 points. 4. 4. Share Price History This section of the report discusses the historical behavior of Qantas share price over the past five years. On the graph, the Y axis indicates the share price in points and the Y axis represents the period of time in years.Chart No. 2 (Australian Securities exchange 2013) http//www. asx. com. au/asx/research/companyInfo. do? by=asxCode&asxCode=QAN The graph reports that, the top of QAN share price over the last five years was in February 2008, when the price was above 4. 500 points. Then between 2008 and beginnings 2009 the share price was decreasing slowly until 1. 500 points, due to the economic crisis mankind, which affected the whole world stock market, since 2009 to in late 2010 the price increased and got the maximum in 3. 000 points.In late 2010, Qantas had its first restructuring and started having maintenance failures and safety, which caused the share price fal l during the two years and it dropped by about 1. 000 points, however it is beginning to evolve now. 4. Recommendation Qantas is one of the major companies in Australia, and also is an important part of the airline global industry. However, this report suggest that, it is not an appropriate time to invest in this company, because the company is going through financial problems that have generated downsizing maintenance problems incurred in the flight safety.Shares price also has travel due to the lack of credibility of the company by the market. Although the share price is emergent slowly at the beginning of this year, the certification problem continues. In addition, as suggestions, company should organize priority the airplanes maintenance process, in order to ensure aircraft operation and keep safe the people life. Finally, in relation with Qantas share price, it has been fluctuating in the periods where the company has made decisions without measuring risk, such as maintena nce downsizing and outsourcing, therefore, company must(prenominal) take into account the future consequences of its aking decisions. REFERENCES Andersen, M, Subbaraman, R, 1996, Share prices and Investment, Economic Analysis Department, Reserve banking company of Australia, declination, pp. 1-2. Crikey, 2012, Real issues behind Qantas maintenance job loss claims, online, Available http//blogs. crikey. com. au/planetalking/2012/11/08/real-issues-behind-qantas-maintenance-job-loss-claims/, 15 January 2013. Herald Sun, 2012, Bitter swan as Qantas cuts 500 jobs, online, Available http//www. heraldsun. com. au/news/victoria/bitter-blow-as-qantas-cuts-500-jobs/story-fn7x8me2-1226361597334, 21 May 2012.Michelson, G, Wailes, N, Van Der Laan, S,Frost, G, 2004, Ethical Investment Processes And Outcomes, daybook of Business Ethics, vol. 52, no. 1, June, pp. 1-10. News. com. au, 2012, Safety detective finds cracked blade caused Qantas emergency, online, Available http//www. news. com. au /travel/news/fractured-blade-to-blame-for-qantas/story-e6frfq80-1226540282165, 18 December 2012. Qantas Airways, 2012, Our Company, online, Available http//www. qantas. com. au/travel/airlines/company/global/en Schwartz, M, 2003, The Ethics of Ethical Investing, Journal of Business Ethics, vol. 43, No. 3, March, pp. 195-213.