Management and Organisational Behaviour Prepared for Dr Retha Wiesner Faculty of Business & Law University of Southern Queensland Toowoomba, Queensland by Student name: W. Amal Peiris Student number: U1031128 MGT5000 INTRODUCTION Qantas faced the crisis in 2011. However it has commenced in 1990 when it was deregulated the government through privatization. Culture of Qantas remained unchanged and it operated as a government organization. Since Qantas was a government owned organization its cost base was not competitive compared to other Airlines. Qantas responded with low-cost Jetstar and just like Virgin Airways, the latter also moved into international flight paths to provide an alternative to passengers. Since then Qantas set out on a modernization path whilst adapting to the global environment. However its cost base continued to climb. Three unions went on a strike and it resulted in 80,000 passengers being affected, more than 600 flights cancelled and seven aircraft grounded. The impact has been felt at both domestically and internationally. On 29 November 2011, Qantas chief executive Alan Joyce made the decision to ground the airline’s entire fleet. This action stranded 68,000 passengers around the world and locked out Qantas employees in response to the protracted industrial dispute. Since parties have failed to resolve the dispute within 21 days, went through a binding arbitration. As consequences to the Qantas crisis the main challenges are to rebuilding of trust, restoring good working relationships and rescuing Qantas’ reputation with its staff, customers, the government and other stakeholders.