How Qantas Implemented a Successful Business Strategy in the Midst of a Global Pandemic
2020 was a rough year for businesses worldwide. The onset of the COVID-19 pandemic caused a wave of uncertainty and disruption, leaving many companies struggling to survive. However, some were able to navigate the storm and even thrive, thanks to their innovative business strategies. One such company was Qantas Airways, the Australian airline that managed to weather the pandemic, unlike its peers. In this blog article, we’ll explore how Qantas Implemented a Successful Business Strategy in the Midst of a Global Pandemic.
The Context:
In March 2020, the Australian government announced strict lockdown measures to curb the spread of COVID-19, grounding all domestic and international flights. This left Qantas in a dire situation, with the majority of its revenue stream wiped out overnight. To make matters worse, Qantas had invested heavily in an ambitious strategy to expand its international routes, which now seemed doomed to fail.
The Solution:
Qantas CEO Alan Joyce immediately went into action-mode and implemented a Three-Step Plan:
1. Focus on Domestic Routes: Joyce recognized that the domestic market was still open, so Qantas pivoted to operating only domestic flights, dropping all international routes.
2. Cost-Cutting Measures: To combat the loss of revenue, Joyce implemented significant cost-cutting measures, including reducing executive salaries, standing down 20,000 employees, and delaying aircraft orders.
3. Bold Business Decisions: With the future uncertain, Qantas made bold business decisions – for example, pivoting their planes from passenger planes to freight carriers, converting its Lounge spaces into coworking spaces, and partnering with BP to offer discounts on fuel.
Results:
Qantas’s Three-Step Plan helped the airline survive the pandemic’s worst, and in November 2020, Qantas announced that it was on the road to recovery. Qantas has managed to recover most of its domestic market share, expanded its ‘Freight’ business to meet the international logistics demands, and even started flying ‘Mystery flights.’ To top it off, Qantas was recently nominated as the world’s safest airline in 2021, beating hundreds of other competitors.
Key Takeaways:
1. Stay agile: When a crisis hits, flexibility and quick decision-making are essential to survive. Qantas recognized this and shifted its focus to what was still operational.
2. Identify what works: When traditional channels fail, look for what opportunities might exist outside of them, as Qantas did with its pivoting to Freight.
3. Innovate: Don’t be afraid to take risks and make bold business decisions. For example, Qantas converted its spaces into co-working spaces.
In conclusion, the pandemic was a challenging time for businesses worldwide. Qantas’s Three-Step Plan is a testament to the power of innovative business strategies. By focusing on its strengths, staying agile, identifying what works, and making bold decisions, Qantas was able to weather the storm and emerge stronger than ever.
