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Analysis of Business Challenges at Qatar Airways

Task 2- Analysis of Business Challenges at Qatar Airways

a)    Identify the key challenges that Qatar Airways is encountering in the current environment.

  • Geopolitical Issues: The Middle Eastern embargo from 2017 to 2021 affected Qatar Airways’ itineraries and increased prices. Although the boycott was removed in 2021, geopolitical issues may still affect the airline (Albasoos et al., 2021).
  • Global economic swings. Qatar Airways is affected by global economic swings. Fuel costs, foreign currency rates, and important markets’ economies might affect the airline’s profitability.
  • Environmental Concerns: Air travel contributes significantly to greenhouse gas emissions, and public concern is rising. Qatar Airways, like other airlines, must balance profitability and environmental impact.
  • Technological Disruptions: Aviation technology is changing swiftly from aircraft design to customer service. Qatar Airways, like other airlines, must spend more to keep up.
  • Staff Training & Development. This involves training, safety, labor cost management, conflicts, and working conditions (O’Connell & Bueno, 2018). At the renowned 2016 Skytrax World Airline Awards, Qatar Airways was recognized for having the best Business Class in the world and the Best Business Class Airline Lounge and Best Airline Staff Service in the Middle East.
  • Competition: Many airlines provide comparable itineraries and services. Qatar Airways must stand out in this competitive industry.
  • High customer expectations. Given the complexity of the aviation sector, maintaining this standard across all touch points takes time and effort. This might involve handling delayed flights, misplaced luggage, customer complaints and ensuring every passenger has a great in-flight experience.
  • Regulatory Compliance: Airlines are extensively regulated, and non-compliance may have serious implications. Safety, environmental, labor, and other requirements may apply. Globally navigating these restrictions takes time and effort.
  • Supply Chain Management: Fuel, in-flight meals, and aircraft components must be managed by an airline. Supply chain issues may affect operations and consumer satisfaction (Albasoos et al., 2021).
  • Innovation and Adaptation: The aviation sector is always changing, requiring constant innovation. Innovation is essential, whether using new, fuel-efficient planes or technology to enhance customer service. It requires tremendous investment and change management.
  • Aviation security. Terrorism and cyber-attacks are examples. Security issues need large resources and continual monitoring (O’Connell & Bueno, 2018).
  • Large brand reputation. Safety problems and bad customer service may swiftly harm the airline’s image. To handle this risk, quality, safety, customer service, and P.R./crisis management are needed.

b)    Management competency of Creativity and Innovation to resolve the challenges identified.

It is only possible to succeed in business by thinking outside the box and coming up with novel solutions to problems. Optimal customer experience, resource management, environmental impact, and the effects of global crises like pandemics are just some of the problems Qatar Airways may face; here are some novel approaches to fixing them.

  • Enhancing Customer Experience through Digital Innovation Qatar Airways might increase its investment in digital innovation to boost the quality of its service to customers. Chabot’s powered by artificial intelligence to answer customers’ questions, for instance, have been shown to increase productivity and decrease wait times. Data analytics also allows for customising services and products for travellers depending on their tastes and itineraries. Virtual plane or destination tours may be provided using A.R. or V.R. to increase client involvement and satisfaction.
  • Resource Optimisation through Predictive Maintenance. Predictive maintenance using machine learning and A.I. may help maximise efficiency with limited resources. The airline may save money and time by preventing delays, cancellations, and other inconveniences caused by unforeseen mechanical problems with the aircraft (Mansar & Weinberg, 2008).
  • Reducing Environmental Impact through Sustainable Practices. Innovations in fuel economy and carbon offset schemes may help Qatar Airways lessen the toll it takes on the environment. The airline may also consider looking at the long-term viability of electric planes or funding research into sustainable aviation fuels. In addition, reducing trash on flights by eliminating or greatly reducing the usage of single-use plastics may help achieve sustainability targets.
  • Incorporating Block chain Technology: Airline Operations Can Be Made More Secure and Transparent. For instance, it can prevent fraudulent ticket purchases, greatly speeding up ticketing. It may also improve baggage monitoring by giving passengers access to clear, real-time information about the whereabouts of their bags (Albasoos et al., 2021).
  • Dealing with Global Crises. When dealing with international disasters like a pandemic, Qatar Airways should have a solid crisis management strategy that uses cutting-edge approaches. Health concerns may be reduced, and passenger safety ensured, for instance, if check-in, security, and boarding processes all use contactless technology. The company may also look at forming relationships with medical service providers to give telehealth services to passengers in the air, especially on international trips (O’Connell & Bueno, 2018).

 

c)     Qatar Airways management needs to implement improvements in Decision-making to mitigate the challenges identified.

Qatar Airways must make smart decisions to successfully weather the storms it faces. The following changes might help the airline’s management become more effective at making decisions:

  • Strategic Thinking. Management at Qatar Airways should work on improving its strategic thinking skills. This requires considering the airline’s long-term vision and ambitions and the issues it faces now and tomorrow. Strategic thinking managers are better equipped to weigh the benefits and drawbacks of various actions (Song et al., 2021).
  • Data-Driven Decision Making. The airline has to improve its data collecting, processing, and reporting to make decisions based on the information rather than guesswork. Thanks to sophisticated analytics and business intelligence solutions, managers now get timely and reliable data. As part of this process, we will examine factors such as customer feedback, market and operational data, and financial metrics. Transparency is increased, bias is decreased, and efficacy is boosted via the use of data in decision-making.
  • Collaborative Decision Making– Management at Qatar Airways should encourage employees to work together to make decisions. A more complete knowledge of the problems and their possible solutions may be attained by soliciting feedback from various sources, including frontline personnel and important stakeholders. By encouraging workers to work together, this strategy boosts originality, increases ideation, and increases buy-in and participation.
  • Effective risk management. It is crucial in the aviation business because of its complexity. Management at Qatar Airways has to do better at foreseeing, evaluating, and minimizing potential dangers. Risk management framework building, risk assessment, and backup plan creation all fall under this category. The airline may improve the quality of its judgments and increase its awareness of potential outcomes by incorporating risk management into its deliberations (Song et al., 2021).
  • Agility & Flexibility. The leadership of Qatar Airways may benefit from learning to be more agile and flexible in their decision-making. This includes building a culture that fosters learning from errors and altering tactics in light of those failures, adopting a test-and-learn strategy, and giving managers the authority to make timely choices within their areas of responsibility. The airline can quickly adapt to changing conditions and take advantage of new possibilities because of its ability to make decisions on the fly.
  • Ethical Decision Making. Adhering to moral principles is essential for making decisions that will last and benefit society in the long run. Safety, employee well-being, environmental impact, and customer pleasure are only a few of the ethical concerns that Qatar Airways’ management should emphasize. By including ethical considerations in airline policymaking, we can increase confidence in our judgments and better serve our customers (Bertelli Fogaça et al., 2022).
  • Continuous Improvement. Fostering a culture of continuous improvement will help Qatar Airways’ employees improve at making decisions. This entails looking at the results of decisions, reviewing them after the fact, and using them as input for future choices. The airline may boost its operations, strengthen its management, and prepare for the future by reflecting on its previous mistakes and successes.
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