Planning a Media Conference for Qantas Airlines - Case Study Example

Planning a Media Conference for Qantas Airlines 2007 TABLE OF CONTENTS 1. PROPOSAL 3 2. REASON 3 3. FOCUS 4 4. CONFERENCE OBJECTIVES 5 5. CONFERENCE DETAILS 5 6. PREPERATION SCHEDULE 6 7. BUDGET 7 8. MEDIA INVITATION LIST 8 9. MEDIA RELEASE 9 10. MEDIA KIT 10 11. MEDIA ALERT 11 12. BACKGROUNDER (media kit item) 12 13. PROFILE (media kit item) 12 14. POSTER (media kit item) 13 15. CONFERENCE TAGS (media kit item) 13 16. EVALUATION 13 1. Proposal I propose that Qantas Airlines organizes a media conference to clear the air regarding the potential fall out of the takeover of the company by Airline Partner Australia, the private equity consortium led by Macquarie Bank. Following the acceptance of the takeover by the Qantas board, there have been apprehensions on the part of the employees and shareholders that this would lead to job losses and loss of financial independence of the company. The media conference will be held at Qantas Airlines’ headquarters at Sydney on February 17, 2006 and addressed by the CEO Geoff Dixon and consortium members, Newbridge Capital’s Ben Gray and Allco Equity Partner’s Peter Yates. 2. Reason The takeover bid by the Airline Partners Australia has grown to be a national and international issue. There are various controversies regarding that takeover and the media has so far highlighted the opinion that the step will have adverse effects on the company and the shareholders. On the other hand, the Qantas board considers the $11 billion takeover bid by the consortium a good deal at the price of $5.6 a share, giving the shareholders a 33 percent premium over investments. There is no fear that the takeover will result in the break up of the company or that the board will lose management control. The memorandum of Qantas does not allow a foreign entity to hold more than 49 percent, individual shareholders not more than 15 percent and a foreign airline not more than 25 percent. Hence, the consortium members across nationalities have bid for the maximum of 25 percent of shares individually. The adverse media coverage that the company has received as a result of fear over loss of independence and jobs needs to be countered. The media conference will focus on the company’s stable performance over the past years and its growing prospects as a result of the takeover. With the takeover, the company will get access to additional funds that can be used to acquire more aircrafts and upgrade the technology. Even if some non-core operations are outsourced to offshore locations, there will be more job opportunities with the increase in the number of flight routes and aircrafts. 3. Focus The financial performance of the company over the last few years has been spectacular. The conference will focus on Qantas’ financial and operational improvements since the outsourcing of software services to IBM in 2004. It will be stressed that the move has not reduced the workforce of the company. Instead, it has increased the productivity of the company. The strong traffic figures for November – 9 percent increase in domestic traffic and 2.3 percent rise in fare yield - will be highlighted. Also, the strong financial performance of the Sydney Airport, also controlled by the Macquarie Bank, will be noted. In the light of the past performance of the company as well as that of the private equity consortium in turning around ailing companies as well as in boosting the growth of a profitable company will be focused. 4. Conference objectives To ensure that the fears related to the aftereffects of the takeover are allayed so that by attending media representatives can communicate through media channels that the takeover is not likely to affect Qantas’ business or employment scenario. To gain attendance of at least 30 representatives from the print and television media in Australia and New Zealand. To get at leas 10 requests from the media representatives for interviews with Qantas and Consortium representatives. Coverage of conference by television channels in Australia and abroad To influence the government and regulatory authorities to take an unbiased view of the takeover issue on the basis of the situation highlighted through the media. 5. Conference details Qantas Headquarters, Chiefly Square, Sydney, New South Wales. The conference will be a full day session, including lunch, one-to-one interview slots with Qantas CEO and Consortium partners and a cocktail in the evening. 6. Preparation schedule Date Pre-conference activity February 2, 2007, Friday Compile media invitee list, confirm guest speakers, finalize budget February 5, 2007, Monday Book conference room and organize tea/coffee, lunch, cocktail and snacks February 6, 2007, Tuesday Create conference agenda, meet with conference speakers, instruct advertising agency about the artwork February 9, 2007, Friday Finalize media kit material, email media invitees about the conference schedule February 10, 2007, Saturday Print media kit material February 12, 2007, Monday Compile media kits February 13, 2007, Tuesday Send out media kits by post and email February 14, 2007, Wednesday Confirm receipt of media kit and collect RSVP as well as interview requests from media representatives February 15, 2007, Thursday Confirm number of media attendees, number and names of media representatives requesting for interview time and have a pre-conference meeting with speakers February 16, 2007, Friday Send email alerts to media representatives and confirmation on the interview slots, check arrangements and equipment at the conference hall February 17, 2007, Saturday Conference during 10 a.m – 12 noon; interview sessions post lunch 3 p.m to 7 p.m; cocktail at 7 p.m 7. Budget Printing (in house): AU$ 300.00 Postage & envelopes: AU$ 50.00 Name tags: AU$ 30.00 Lunch: AU$4000.00 Cocktail & snacks: AU$3000.00 Conference audio: AU$ 300.00 Video recording: AU $ 500.00 TOTAL: AU$8180.00 The budget allows for address by the conference speakers as well as a cocktail that would follow to provide media representatives with possibilities of interaction with the top management of the company. The aim is to generate more interview opportunities for Qantas in the local and international press. Media representatives will be allotted 15 minutes interview slots after the conference and lunch. 8. Media invitation list Media Contact Address Contact The Australian 2 Holt Street, Surry Hills, NSW 2010 Post: GPO Box 4245 Sydney NSW 2001 Tel: (02) 9288 3000 Fax: (02) 9288 2250 Executive Editor: Deborah Jones Sydney Morning Herald 201 Sussex Street Sydney 2000 Tel: (02) 9288 3000 Fax: (02) 9288 2250 newsdesk@smh.com.au. Northern Territory News Printers Place, Darwin, NT, 0800 Phone: (08) 8944 9900 International dial: 61 8 8944 9900 Fax: (08) 8981 3693 Editorial fax: (08) 8981 6045 Editor: Julian Ricci Brisbane Courier Mail GPO Box 130 Brisbane Queensland 4001 Phone: 1300 30 40 20 Editor: David Fagan The Melbourne Age PO Box 257C Melbourne VIC 3001 Phone: 03) 9601 2250 newsdesk@theage.com.au West Australian News A.B.N. 16 003 667 954 Level 3, 210 George Street, Sydney NSW 2000 Telephone: (02) 9241 5110 Facsimile: (02) 9252 8453 cdsilva@wansydney.com.au Australian Broadcasting Corporation Radio GPO Box 9994 Sydney NSW 2001 Phone:1300 13 9994 News Editor currentaffairs@your.abc.net.au  http://www.abc.net.au/insidebusiness/form.htm Network Ten Channel 10 GPO Box 10 Sydney NSW 2001 Tel: (02) 9650 1010 Fax: (02) 9619 1005 Director of Programming Win Network WIN TV Canberra PO Box 4617 KINGSTON ACT 2604 Tel: (02) 6239 6444 Fax: (02) 6239 6644 Operation Manager Capital Networks Capital Television Private Bag 10 DICKSON ACT 2602 Tel: (02) 6242 2400 Fax: (02) 6241 6511 General Manager The complete media invitee list is to be developed so that the Australian media as well as correspondents of the international press and news agencies are covered. The aim is to generate enough media placements to counter the fears regarding the takeover. 9. Media release February 17, 2007 Qantas promises job protection after takeover Qantas CEO Geoff Dixon has assured the union that there will be no job losses with the proposed takeover of the company by the Macquirie Bank-led private equity consortium. The management and organization of Qantas will be intact, promise representatives of the consortium. In a conference called jointly by Qantas and the Consortium, Newbridge Capital’s Ben Gray and Allco Equity Partner’s Peter Yates, representatives of the Consortium too reiterated Dixon’s assurance. There are no fears of job migration to low cost centers in Asia, break-up of the company or loss of management control by the board. The exercise is simply to provide shareholders’ value that may subsequently be used to improve the technology and services provided by the airlines. The exercise will improve the financial strength of Qantas that is demonstrating growth in passenger traffic and fare yield. Post takeover, the company plans to make some more acquisitions in high-revenue routes like south-east Asia and Tasmania. The company also plans to initiate discount fare offerings and more routes to domestic tourist destinations. End.- Media contact: Alana Ortiz, 08 9262 1751 Corporate Communications Manager Qantas Centre 203 Coward Street Mascot NSW 2020 10. Media kit The media kit for this conference will include: • The invitation to the media conference signed by Qantas CEO The personal invitation signed by the CEO will signify the importance that the company gives to this conference. The media representatives are already aware that this is not an ordinary corporate press conference. The personalized invitation ensures maximum attendance • A profile on the Qantas Airlines Although Qantas is a well-known company, the profile will highlight the recent achievements and future plans. • A sheet on the relevant details on the issue of the takeover of Qantas Airlines by Airlines Partner Australia This sheet will give the media representatives an idea on the stand of the company on the issues related to the takeover and the confusion that has prevailed over the conflicting views. It will give the reader an understanding as to why the board finds the takeover an advantage of the company • A media release outlining the focus of the conference This media release will provide a brief background to the issue of the takeover and why the company decided to organize the conference. This is a communication tool aimed at ensuring that the conference is attended by the extensive opinion-making media. • Conference entry tags with media organization and representative’s name The distribution of the entry tags will make it easier for the executives to keep track of the attendance of the media representatives. • Qantas’ media spokesperson’s business card with relevant contact details The business card will be useful for the media representatives to keep in touch with the company for further communication. Parts of the media kit will also be available in electronic form. In particular, the media release and the media alert will also be sent to the media representatives by e-mail. 11. Media alert February 17, 2007 Qantas’ and Consortium to detail takeover issues Spokespersons of Qantas Airlines and Airline Partners Australia will discuss issues regarding the takeover of the company by the Macquarie-Bank led Consortium at the Sydney Headquarters of the company. The conference will give the media the opportunity to hear the perspectives of the company and the Consortium. It will also give one-to-one interview opportunities with Qantas and Consortium representatives following the conference. 12. Backgrounder (media kit item) In December 2006, a private equity consortium led by Macquarie Bank, Airlines Partner Australia, announced a takeover bid for $11.1 billion. Once the Qantas shareholders ratify the bid that has already been accepted by the board, the company would once again become an unlisted one as it was previous to 1992. Following the announcement of the takeover, concerns have been raised regarding the fallout of the initiative. Unions fear there might be job losses as a result of transfer of operations to Asia and shareholders are concerned that the company might break up or that the board will lose management control. The conference is planned to share the perspectives of the company and the Consortium regarding the takeover and emphasize that it is purely a financial exercise that would be beneficial to the company. 13. Profile (media kit item) Qantas Airlines, established in 1920, is the second oldest independent airline that is still in operation. It has the largest market share in Australian aviation. Qantas (the name being the short form of Queensland and Northern Territorial Airlines Service, as it was originally called) is now the largest airline company in Australia and has services from Sydney and New South Wales. The main domestic and international hubs of Qantas are the Sydney, Melbourne and Brisbane airports. Qantas was privatized in 1992 after the Australian government sold Australian Airlines to the company. In international routes, Qantas operates in the United States, Europe, Tasmania and Asia. In 2004, Qantas too joined the bandwagon of discount aviation and launched the Jetstar Asia Airways, in which it owns 44 percent share. This marked Qantas’ foray into the Asian aviation routes. 14. Poster (media kit item) 15. Conference tags (media kit item) 16. Evaluation The purpose of the media conference is to highlight the views of the company regarding the takeover in order to clear the misunderstanding that is being perpetrated through distortions of the events. Hence, the conference has a specific purpose and needs to be evaluated in this light. The evaluation of the effectiveness of the conference would begin with the number of attendees and the number of requests for interviews, both from the print media and television. Also, the representation from the opinion-making leaders of the media needs to be evaluated against the participation of smaller, regional media players. Next in the evaluation shall be made through scanning of the media opinion about the takeover after the conference and to evaluate whether it has made a significant difference in attitude. Finally, the conference will be deemed most effective if the unions discard their aggressive stand on the issue after being convinced through the media stories that the step will no hamper their livelihoods. Reference Rochfort, Scott, Consortium hires lobbyists to settle turbulence over takeover, January 26, 2007, The Age, http://www.theage.com.au/news/business/consortium-hires-lobbyist-to-settle-turbulence-over-qantas-takeover/2007/01/25/1169594434470.html Qantas Communication audit, Assessment 1. Read More