Airline Ratio of Retained Profits to Dividends for 2003
4. STRATEGY AND COMPETITIVE POSITION
4.1 The Vision and Guiding Principles
An airline’s vision and guiding principles sometimes give an indication as to the culture and priorities which lie within the organisation and that which is driven down through the airline by the Board and executive management team. A comparison of the publicised vision and guiding principles with the actual culture experienced within the organisation is a good indicator as to the level of control which the management team have over the business. The following paragraphs contain the visions and guiding principles for the four airlines:
Air New Zealand’s Vision Statement and Guiding Principles
We will strive to be number one in every market we serve by creating a workplace where teams are committed to our customers in a distinctively New Zealand way, resulting in superior industry returns.
We will be the customers' airline of choice when travelling to, from and within New Zealand.
We will build competitive advantage in all of our businesses through the creativity and innovation of our people.
We will champion and promote New Zealand and its people, culture and business at home and overseas.
We will work together as a great team committed to the growth and vitality of our company and New Zealand.
Our workplaces will be fun, energising and where everyone can make a difference
(Air New Zealand. 2007.)
Easy Jet Mission Statement
To provide our customers with safe, good value, point-to-point air services. To effect and to offer a consistent and reliable product and fares appealing to leisure and business markets on a range of European routes. To achieve this we will develop our people and establish lasting relationships with our suppliers.(Easy Jet. 2008.)
Qantas Vision and Mission Statements
Qantas does not appear to have a publicly advertised mission statement or list of guiding principles. Reading through Board Reports, staff briefings, press releases and other internet based documents the following separated statements can be found:
Possible Mission Statements
• Shareholders - Provide a good return on investment for shareholders • Employees - To encourage and nurture its employees
• Customers - To provide the best possible travel experience
Possible Vision Statements
• Strategic Goals - To maintain and expand its current market share (eg: 70% domestic -> aim is 80%)
• How - To explore new markets (eg: Asia) • When – In the near future
The following are quoted from the Qantas Annual Reports:
“Our goal is to give each customer the best possible travel experience, form the time they choose to fly with us to when they arrive at their ultimate destination.”
Organisational values
“Our Customers: Customers are at the centre of everything we do” “Our Brand: Our brand takes the spirit of Australia to the world” “Our Priority: There is no greater priority than safety and security” “Our Future: Investment and innovation help shape our future”
“Our Business: Being a good business is as important as being a great airline inaction" In summary there is no clearly defined and communicated company Vision Statement or Guiding Principle Statement for the Qantas employees or shareholders.
Virgin Blue
In some ways similar to Qantas, Virgin Blue does not have a well communicated vision or mission statement. Virgin Blue defines itself as The New World Carrier with its promise to ‘keep the air fair’.
Our focus is on offering a range of innovative products, services and features that better meet the needs of all Guests, particularly corporate and government travellers, whilst maintaining the significant cost advantage of a low-cost carrier. Unlike traditional ‘no frills’ low-cost carriers, Virgin Blue’s
approach is to offer consistently affordable fares, outstanding service and a host of other options available on a pay-for use basis such as in-flight meals and snacks, Premium Economy and Blue Zone seating, Corporate Plus and Fully Flexible fares, live2air in-flight television, airport lounge facilities and carbon off-setting options. (Virgin Blue. 2008.)
Although Virgin Blue does not clearly communicate a vision or mission statement to the employees or the shareholders, the Virgin brand delivers a much more powerful message to the world. Each of the many Virgin Branded companies have to deliver on these globally recognised values. Below is the Virgin Group statement to which all Virgin companies must deliver in order to protect the ‘brand’.
We believe in making a difference. In our customers' eyes, Virgin stands for value for money, quality, innovation, fun and a sense of competitive challenge. We deliver a quality service by empowering our employees and we facilitate and monitor customer feedback to continually improve the customer's experience through innovation. (Virgin Group. 2008.)
In summary, Air New Zealand offers a passionate vision and mission statement which
centres around being number one with exceptional service through the ultimate ‘Kiwi
Experience’. Easy Jet displays itself as a very factual and reliable business which looks to
guarantee its performance through investment in its people and suppliers. Qantas does not have a clear vision and mission statement to pass onto its employees and shareholders. Virgin Blue enjoys the reputation of the Virgin Group branding whilst committing to being
customer focussed and offering a quality product to corporate businesses and holiday makers at low cost airline rates.