On Saturday the worlds longest continuously flying and safest airline, Qantas, took the extraordinary step of grounding its entire global fleet and locking out workers from three unions in effort to bring to a head a long running industrial dispute.
While Qantas returned to the air today the dispute is far from over and the public debate on the action taken by Qantas and the Unions has kept the 24 hour news cycle busy. Everyone of course has an opinion on what needs to happen and some are even calling for the airline to be nationalised again so that they can compete with other international carriers owned by foreign governments.
I am not going to get in to a debate on this blog about the various options but I ask you to consider for a moment what the biggest lesson we can take from the challenges that got Qantas to the point it is today and I say that lesson is one about the constant need for a company to innovate, evolve and transform itself pro-actively.
Transformation is an ugly word, it’s ugly because it instantly conjures up thoughts of change, uncertainty and in turn fear in people. However if we look across the world those companies in any industry that have continued to evolve themselves have continued to be strong resilient companies.
IBM, for example, started as a computer hardware company and is now helping deliver “smarter thinking” through its global services company and is ranked the 18th largest company in the world. Their hardware business is no longer their core business and maybe in the future consultancy won’t be.
Within the airline industry I think of Virgin Atlantic and Southwest Airlines two companies that have fought to shake up the airline industry and proven that you can win by doing things slightly differently.
Southwest wins through a number of approaches and one of them includes having the fastest aircraft turnaround times in America. In 30 years of operations they have never posted a company loss have won numerous awards for customer service and employee excellence. A great example of what can be achieved with strong employee and customer engagement.
Today Qantas CEO Alan Joyce said that Qantas has 14 to 15 maintenance engineers per plane compared to the 2 to 3 that their major domestic competitor Virgin Australia has. Joyce was using this as just one example of why Qantas is struggling to compete in the market place.
The problem I have with this comparison is that improvements and efficiencies in engineering, maintenance and all areas of business didn’t happen overnight, Virgin and others don’t have some magic dust that makes things easier to fix.
The only difference is that Qantas is plagued by legacy issues, issues that undoubtedly in some instances go back generations but issues that should have been considered and acted upon by an engaged focused leadership team.
Qantas needs to invest heavily in innovation, it needs to make some difficult decisions and it needs to embed a culture of continuous innovation, employee and customer engagement.
The key here though is engagement and a good dose of reality from both the executive and the employees of the company. Qantas can’t expect not to have to spend money in modernising its operations, staff can’t expect to continue to outpace industry benefits or staffing levels.
Both parties, in my opinion, need to find a common goal and work together to achieve it. The reality is I actually think both the employees and executive already have that goal – to have the best airline in the world, the only problem is they are poles apart in how to achieve it.
So if you are a business owner or a business leader don’t wait for things to get to the do or die level, engage with your staff, inspire your staff and deliver month on month (day on day if you can) improvements to your business so that whatever “storm” hits your industry you are prepared for it.
I would love to hear about how your company has weather storms and continues to innovate, leave a comment – or leave a comment on how you would fix the Qantas challenges.


