Flying High And Low Summary

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A critical review of Troy Sarina and Russell D. Lansbury’s article, “Flying high and low? Strategic choice and employment relations in Qantas and Jetstar.” Asia Pacific Journal of Human Resources (2013) 51, pp.437–453.
Examining Sarina and Lansbury’s (2013) article on the two airline Qantas and Jetstar, it is seen that the conducted study concerns the strategic choices that the airlines adopted in relation to the changing factors that affected the aviation industry. This research aims to explore and unfold the different changes in strategies regarding the employment relations of the airlines. The article sought the business strategies of Qantas and Jetstar in order to remain engaging in a competitive market. The study reveals that the airlines
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It is argued by Tibergen (2004) that due to deregulation of the government and privatisation of airlines, that it often resulted in a large amount of changes in business strategies which often were signing alliances with other companies or the formation of lower cost carrier. In the case of the airline Qantas it resulted in both as it formed an alliance with Emirates and the low cost carrier, Jetstar was created. Sarina’s and Lansbury’s central argument is that after major debates with trade unions, it was revealed that employment relations strategies are an important factor in order to remain a successful business at long term. Following this argument, they mainly support the view that Qantas and jetstar adopted a “hybrid road” business strategies. To do so, they rely on different frameworks used by previous studies. For instance, they use the strategic negotiations framework initiated by Walton and McKersie (1994) to support their observation that Qantas is originally operating through “high road” strategies (441?). This was due to the fact that it provided high leading wages and high quality services to customers and employees (441). However, with a growing competition in the aviation market, new airlines were created, which resulted in Qantas loosing its superiority in the domestic market. Consequently, Qantas created Jetstar a “low road” strategy airline to take over the domestic routes. “Low-road” employment relation strategies are based on lower labour cost and high managerial control (Sarina and Lansbury: 2013: 441). Despite the two branded strategies that helped the increasing profits for Qantas and Jetstar, the article argues that creating a low cost carrier wasn 't sufficient in order to overcome the changing external factors such as increasing fuel prices,

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