The frequent flyer program is Qantas’ most valuable asset and a sale of this program would help Qantas get out of its current financial troubles. However, selling the program would also mean allowing another company to have access to Qantas most loyal customers including their business class and first class customers. In the long-run, there is potential the sale could backfire and would not be wise.

Do some research on CEO Joyce’s current choice of whether or not to sell their frequent flyer program, and also thoroughly review the background materials on intuitive versus rational decision-making including Buhler (2001) and Kourdi (2011). Your assignment will be to apply the background materials concepts to Joyce’s current big decision.

1. Is the decision whether or not to sell Qantas’ frequent flyer program a strategic or operational decision? Is it a programmed or non-programmed decision? Explain your answer using references to Buhler (2001) or Kourdi (2003).
2. Suppose Alan Joyce decides to take a rational approach to the decision whether or not to sell the frequent flyer program. List a step-by-step approach you would recommend, and include specifics regarding what kind of information or choices should be considered at each step. Do not just list the steps, give detail at each step and use material both from your research on Qantas and from Buhler (2001) or Kourdi (2003) to come up with these steps.
3. Joyce has been the CEO of Qantas for six years and is an experienced airline executive. Given his experience, do you recommend Joyce use a rational or intuitive approach to this decision? If there is a new CEO who comes from another industry and does not have this airline experience, would you recommend they use a rational or intuitive approach? Explain your reasoning, and make references to Buhler (2001) or Kourdi (2003) as appropriate.