Qantas Life Cycle

Qantas Life Cycle
Business Report: Part B
To: Mr Alexander Finall
From: Bailey Brien
Subject: The various stages of the Qantas Business Life Cycle over the past 10 years
Executive Summary:
Qantas Airways is the major airline carrier in Australia and is the leading airline not just in Australia but the whole
world. Qantas is a major airline known all around the world that delivers to their customers and wants to constantly
improve their performance. Qantas has been a major developer in the airline business since they were founded in
1920. They have had some major success within the business for over ninety years, however, over the past ten
years they have experienced some major challenges which have put the business and leadership of CEO Allan
Joyce into question. This report outlines the challenges they have faced in they have faced in the post maturity
stage in the business life cycle which include the 2011 Qantas Industrial Disputes and the 2013/14 Qantas loss of
profit, how they have been able to overcome those challenges and influences, both internal and external. Internal
and External Influences:
Qantas has been influenced heavily by internal and external influences because as a major airline business, they are
always ... Show more content on Helpwriting.net ...
According to source 3, in 2013/14 Qantas reported a PBT loss of $252 million dollars and lost a further $235
million dollar after tax. Alan Joyce explained in source 3 that Australia has been hit with a giant wave of
international airline capacity with a 46% increase in competitor capacity since 2009. Three main competition was
Virgin Australia as they were trying to expand their fleet during that year, so Qantas lost some customers who went
to fly with Virgin instead. This could possibly have to do with the Malaysian airline plane MH370 which went
missing. Passengers could have been fearful to fly with any airline after what happened with that
... Get more on HelpWriting.net ...

Changing the Culture at British Airways Essay
1. What was life like at "old" British Airways?
Employees were embarrassed to mention they worked for the company.
British Airways stumbled into its 1979 state of inefficiency in large part because of its history and culture.
British Airways faced the worst crisis in its history in the late 1970's early 1980's.
Unless they took immediate action they were heading for a loss of at least £100 million within that present
financial year.
They faced the potential that by that following April they had losses close to £250 million in two years.
A special bulletin was written by then chief executive Roy Watts issued to all staff stating the following:
Even as I write to you, our money is draining at the rate of nearly £200 a ... Show more content on Helpwriting.net
...
3. What were the critical factors in the successful transformation?
King launched their Survival plan– "tough, unpalatable and immediate measures" to stem the spiraling losses and
save the airline from bankruptcy. The radical steps included reducing staff numbers from 52,000 to 43,000, or 20
percent, in just nine months; freezing pay increases for a year; and closing 16 routes, eight on–line stations, and
two engineering bases. It also dictated halting cargo–only services and selling the fleet, and inflicting massive cuts
upon offices, administrative services, and staff clubs.
In June of 1982, BA management appended the Survival plan to accommodate the reduction of another 7,000 staff,
which would eventually bring the total employees down from about 42,000 to nearly 35,000. BA accomplished its
reductions through voluntary measures, offering such generous severance that they ended up with more volunteers
than necessary. In total, the airline dished out some £150 million in severance pay. Between 1981 and 1983, BA
reduced its staff by about a quarter.
On September 13, 1982, King relieved its 36–year–old advertising account was being replaced by Saatchi &
Saatchi. One of the biggest account changes in British history, it was King's way of making a clear statement that
the BA direction had changed.
In April of 1983, British Airways launched its "Manhattan Landing" campaign. King and his staff sent BA
management

Situational Analysis Of Qantas Airlines ' Situational...
Situational Analysis
This report largely focuses on constructing a situational analysis of Qantas Airlines. An organisations situational
analysis refers to an analysis that consists of ascertaining the key factors that will be used as a basis for
development of marketing strategy. (Elliot 2014). Situational analysis consists of the environment analysis (both
internal and external environment), competitor's analysis and finally the swot analysis.
By analysing those elements stated above, it is likely that the higher authority could evaluate the organisations in
terms of its strategic performance level which would definitely lead to a better overall understanding on ... Show
more content on Helpwriting.net ...
 Reinforce jetstar domestic's low price and scale advantage position.
3) Strengthen and grow loyalty business
 Maintain Qantas frequent flyer as a driver of loyalty across group and as a leading loyalty program.
 Innovate and differentiate leveraging advantaged assets and capabilities
4) Deliver on existing Jetstar opportunities and partnerships in Asia.
Market share
Market share is defined as companies sales as a percentage of total sales volume in a specific industry, market or
product area. In the local region, Qantas managed to outweigh its competitor by gaining a toll of 65% compared to
its competitor. Evidently this shows Qantas is the number one preferred airlines compared to other competitor
airlines like Virgin, Tiger Airways and Emirates airlines. However the situation is not the same in South East Asian
region as Qantas only managed to obtain about 15% of market share compared to likes of Air Asia who leads the
market share with 60% in this region. Conversely, this is not a concern for the airlines as the airlines managed to
generate revenue of 5 billion dollars, with a predicted passenger growth of 4.9% which is equivalent to 2.9 billion
passengers by 2034.
Service quality
Service quality is referred to a valuation of how good a delivered service meets the customer's expectation. Upper
management

Pest Analysis Of Qantas
Qantas airline has introduced as the fast growing and dynamic environment in Australian airline business. Various
business strategy and marketing analysis has tremendously changed in the field of Qantas airline. Different types
advance technologies have been applied to make it second largest foreign airline. The nick name of the Qantas
airline is The Flying Kangaroo which is based in Sydney Airline. Qantas airline is the world's oldest airline. The
headquarters of the Qantas airline are located in the Sydney (Graham, 2006). Currently Qantas airline has
introduced as the four star airline with the help of Skytrax. The total strength of Qantas airline is about 32,500 and
it works on about 250 aircraft around the world. Various types of aircrafts ... Show more content on
Helpwriting.net ...
The SWOT and PEST analysis can be referred to as the analysis tools which are used to identify the organizational.
A SWOT analysis is the study of an organization about the strength, weaknesses, external opportunities and threats
of the organization. Pest analysis is another tool or framework which is used to determine the macro environment
of any organization. The marketers uses the pest analysis to analysis the political, environmental, social and
technological impacts of the organization. In this report various types of marketing techniques or tools are used to
understand the Qantas environmental strategy.
SWOT analysis of Qantas Airline SWOT analysis is a significant tool to understand the strength, weakness,
external opportunities and threats of an organization. Marketers use SWOT analysis to improve their internal and
external factors over the world business strategy. In this project various types of analysis will be discussed.
Strengths
The strength of any organization plays an important role to improve the business strategy. Qantas airlines have
various kinds of strength such

Qantas strategies Analysis
Criterion
Maximum Mark
Your mark
Research and analysis of company information
5.0
4.0
Considerations of constraints impacting organisational strategy
5.0
3.75
Application of relevant theories of strategy
5.0
3.75
Development of argument and applied critical thought
5.0
4.0
Written communication & referencing
5.0
3.25
Total marks
/25
18.75
EXECUTIVE SUMMARY
The report has discussesd and appliesd theoretical concepts and principles of strategic management into analyzing
the environment context where to Qantas Airways Limited operates.
It shows that, Qantas has a long history and sustainable development but needs to evolve in the global world.
ization context, the company has to continue ... Show more content on Helpwriting.net ...

In 2012, Qantas carries a 44.6% shares of the Australian domestic market and 18% of all passengers travelling in
and out of Australia while the respective market segments for Jetstar are 20,7% and 8%. The chart below compares
the top 10 international airlines.
Figure 1: Top 10 international airlines in Australia
(Source: ANNA– Airlines Network News and Analysis, 2010) 
2.2. Resources and capabilities
– Tangible resources: Establisheding in 1920, Qantas Group has grown gradually and remain one of the largest and
strongest in Australian airways industry. During the last 5 recently years, Qantas has steadily expanded its
operations by increasing number of aircrafts, passengers, employees and destinations all over the world. Its
development can be demonstrated as data below:
Figure 2: Qantas's resources from 2008–2012  (Adopted from Qantas data book 2012, see Appendix)
Qantas's total asset increased from $19.7 billion in 2008 to $21.1 billion in 2012. More than half of its assets are
from property, plant and equipment which book value at $14.13m at the end of FY2012. Intangible assets values at

$610,000. 
At the end of FY2012, the corporation had a cash balance of $3.4 billion, and 308 aircrafts from three main
suppliers Airbus, Boeing and Bombardiers. The Group has 12 Airbus A380, 30 Airbus A330, 60 Boeing B737, 36
Boeing B747 and 46 Bombardiers. 
– Intangible resources:
Qantas has a strong reputation for long history

Qantas Marketing Audit Essay
Qantas is the world's second oldest airline, having been founded in the Australian outback in 1920. It is Australia's
largest domestic and international airline. The name comes from the initial letters of the words in the original
registered title–Queensland and Northern Territory Aerial Services Limited.
The Qantas Group employs approximately 32,500 people and operates a fleet of over 250 aircraft, comprising
Boeing, Airbus and Bombardier aircraft from full–size long–haul aircraft to smaller short haul aircraft. The Group
offers services across a network spanning 182 destinations in 44 countries
(including those covered by code share partners). International Air Transport Association (IATA) data for 2009
shows Qantas was the world's ... Show more content on Helpwriting.net ...
Reflecting this, the need to cut costs is a central tenant of the Group's strategy for Qantas. According to the airline,
the cost base is around 20 per cent higher than key competitors.3 It simply does not have the low cost structure of
many of the competitors, especially the Asian competitors. Neither does Qantas have the well positioned hubs of
the competitor Asian and Middle Eastern carriers. Accordingly Qantas is having to undertake its marketing in an
environment where competitors, such as Emirates, Etihad, and Singapore Airlines
(with great hubs) are tackling them head–on. Given the above, a large number of Qantas routes, primarily to Asia
and Europe, are loss–making.4
In contrast, a central tenant of the JetStar strategy is to grow the brand in Asian markets through standalone
operations, joint ventures and strategic alliances, as much as possible and as rapidly as possible. Jetstar is one of
the world's fastest growing and most profitable low–fares airlines, set for significant future growth.5
Management perceives that part of the solution for the Qantas division of the international business is offshore
maintenance of aircraft, employment of overseas flight

Provide Leadership Across and Organisation
Provide Leadership Across The Organisation | May 3
2013
| | |
Table of Contents Executive Summary 2 Introduction 2 Strategic Directions 3 Macro and Micro Forces 3 Media
and Language 4 Expectations 4 Issues and How They Are Addressed 5 Investigation of Incidents 5 Building Trust,
Confidence and Respect 5 Monitoring the Global Environment and New Technology 6 Flexibility and Adaptability
to Change 6 Consultation 7 Decision Making 8 Risk Management Plans 9 10 10 Accountabilities and
Responsibilities 11 Resource Management 11 Delegation 11 Positive Work Environment 12 Innovation 13 Ethical
Conduct 13 Interpersonal and Leadership Styles 14 Personal Objectives 14 Self–Performance and ... Show more
content on Helpwriting.net ...
Their strategic goals include: * Build on the Group's strong domestic businesses through a clear focus on the
customer. (Qantas, 2012, p. 13) * Turn around Qantas International through the "four pillars" of targeting global
gateways, growing with Asia, improving the customer experience and ensuring disciplined financial management.
(Qantas, 2012, p. 13) * Strengthen Jetstar's presence across Asia to capture the full benefits of the region's low–cost
leisure travel boom. (Qantas, 2012, p. 13) * Continue to expand Qantas Frequent Flyer by adding new partners and
increasing ways for members to earn and spend points. (Qantas, 2012, p. 13)
Qantas values its customers, employees and their safety. Safety is our first priority. This has been promoted
extensively everywhere. Badges were created having this motto written on it, showing the emphasis it has on
safety and in order to maintain this, standards are up to speed and bettered from the actual requirements.
Macro and Micro Forces
There are two types of environments which can have an impact on the organisational objectives and strategic goals.
The Macro environment include factor such as: * Demographics: The demographics of a nation can have a major
impact on organisations goals as people/customers are the main reason for this service. Australia has a

Qantas Airways Ltd: Analysis and Valuation
TABLE OF CONTENTS
TOPICS PAGE NO.
1.0 Executive Summary...............................................................3–4
2.0 Objectives.............................................................................5
3.0 Economic Analysis.................................................................6–7
4.0 Industry Analysis....................................................................8–10
5.0 Company Profile.....................................................................11
5.1 Key Financial Ratios......................................................11–12
6.0 Valuations.............................................................................15
6.1 Dividend Valuation Model................................................14–16
6.2 Price–Earnings(P/E) Model................................................17
7.0 Limitations..............................................................................18
8.0 Conclusions and Recommendations.............................................19
5.0 List of References.....................................................................20–22
APPENDIX
1 Qantas Airways Ltd – Key Facts...............................................23–24
2 Ratio ... Show more content on Helpwriting.net ...
The report will serve as a guide to a potential investor who wants to make an investment in the said company.
Therefore, the report also gives a recommendation about whether or not to invest in the company.
Moreover, this report has been prepared to fulfil the passing criteria of HBC618 Personal Investment.
3.0 ECONOMIC ANALYSIS
The world economies depend on one another immensely as they are connected through trade, migration and
investment. Presently, global economy has slowed down as a result of the credit market turmoil and tightening of
financial conditions in the developed countries especially in US. On the other hand this has not affected the
economic growth in Asian countries such as India and China which still has been strong. This has been one of the
major factors for Australian economy to be in a strong position, as China and India are one of the biggest

consumers of Australian exports.
In the year 2008 Australia has seen an increase in its cash rate (also known as Interest rate) twice by 25 basis
points. At present the cash rate is 7.25 percent. One of the major reasons for such a tightening of monetary policy is
the rising inflation in Australia. Presently Australia is experiencing an inflation rate of 4.2 (Figure 1) percent which
is above the Reserve Bank target of 2 to 3 percent. In addition to this, Australian dollar is strengthening against
many currencies

Swot Analysis Of Qantas Airlines
Qantas airline has introduced as the fast growing and dynamic environment in Australian airline business. Various
business strategy and marketing analysis has tremendously changed in the field of Qantas airline. Different types
advance technologies have been applied to make it second largest foreign airline. The nick name of the Qantas
airline is The Flying Kangaroo which is based in Sydney Airline. Qantas airline is the world's oldest airline. The
headquarters of the Qantas airline are located in the Sydney (Graham, 2006). Currently Qantas airline has
introduced as the four star airline with the help of Skytrax. The total strength of Qantas airline is about 32,500 and
it works on about 250 aircraft around the world. Various types of ... Show more content on Helpwriting.net ...
From the given data by International Air Transport Association in 2009 Qantas airline service was the world's 11th
largest airways in the field of Revenue passenger. Qantas is the budget fares airway that operates the Jetstar Asia in
Based in Singapore. The Qantas airline group employed a successful strategy between Jetstar and Qantas. Its low
cost airline service plays an effective role to make it significant growth over the recent decades. The growth is
increasing for the international expansion of the Qantas airways. The growth of the business can also come from
Australian market share with the help of low cost service. The Qantas airline mainly operates on international
business market. The business has introduced as the significant transformation in the field of business market. The
company has improved its performance of the segment of about $171. The improvement of the business strategy of
Qantas is the main motto to make the profit. Qantas maintains over $3 billion cash and $400m in liquidity position.
The company has expanded its business in Asia through the Jetstar airline. This is world's one of the low cost
carrier in the Asia Pacific region. Jetstar airways maintain the main shareholders partner with the advancement of
low cost

Case Study Of Qantas
In this long operation period, Qantas constantly developed and improved so as to achieved some achievement and
earn good reputation. For example, in 2012, it got different awards about entertainment facilities, the best first class
and business class within 10. In addition, it was the best safety airline in the world from Airline Ratings in 2013.
These good growth can lead Qantas come into a good situation and bring more passengers.
1.4 Affecting future strategy choice
Qantas got a lot of awards in past years, especially in safety aspect. Therefore, flying safety may be kept focus in
future strategy. Also, the service in different classes could be maintained or made better in order to retain the
reputation.
1.5 Mission
According to Qantas Fact Files (2010, p.5), the mission of Qantas is to "operate ... Show more content on
Helpwriting.net ...
Giving Make–A–Wish Australia as an example, it is an international charity whose mission is to give hope and
pleasure to children and teenagers whom are with life–threating disease. Qantas donates money to support and help
these kinds of people to find hope as well as enrich their life.
This aspect proved Qantas concern on people. It wants to provide help on Australia's people, therefore; it can
provide good service to passengers.
Environment is one of the topics it concerns as well. Pollution is inevitably to produce when there is flying.
However, Qantas still wants to try its best to reduce the pollution problem. For example, it joins energy saving
program, waste recycling as well as Fly Carbon Neutral Program to reduce the pollution problem that it bring.
Apart from community, people and environment aspect, Qantas also sponsor on arts and sports areas. It sponsors
on Sydney Theatre Company, The Australian Ballet, The Museum of Old and New Art and so on. Also,
competitive spirit is one of the Australia Spirit. Australian Paralympic Committee is one of

Rivalry Air As Swot Analysis Of Airasia
Start–up Cost is high. This is act as a barrier of entry for the competitor as there are high in capital requirement
such as set up of headquarters, purchasing or hiring aircraft, appointment pilots and other staffs like air supervisor.
Diversified in product offered. AirAsia has expanded their product line by not only sales ticket but also offering
tourism package which is offering hotel booking while booking the ticket. It must have a good relation with hotels
and tourism companies around Asia.
Government regulations are strict. Due to competitive in airline industry and protects on national airlines, MAS
which facing losses in these year, it is quite difficulty to apply for licensing and permit for operating airline
company.
2. Rivalry ... Show more content on Helpwriting.net ...
RECOMMENDATIONS
AirAsia will be the best airline company as having the cheapest price tickets and letting everyone can fly around
the world. To remain leader in the market in serving customers, AirAsia has to re–evaluate their current strategy.
Recommendation for improvement can be outlined as follows:
– AirAsia should make any major changes to their strategy after proper technical and feasibility study to avoid
unnecessary risks.
– Oil price is a big factor to low fare airlines. So this company should make longer contracts with fuel suppliers for
more stability.
– As Airasia operates their fight very frequently, so they should have a spare aircraft at each location to avoid
delays.
– AirAsia should consider environmentally friendly operation system as such as carbon offsetting to save
environment.
– Extending current services into new markets may be helpful to further growth of this company. It is possible to
achieve this strategy by launching existing services into new geographical area or new market segments.
– Adding new routes and destinations are possible; especially there is growth Malaysia and East Asia

Australian Domestic Market : Qantas Group
Contents
Introduction and Overview of the Australian Domestic Market
Financial Performance within the Qantas Group
Qantas Group strategies
Qantas in the Australian Domestic Market
Australian Domestic Competition from Virgin and Tiger
Conclusion
References
Introduction and Overview of the Australian Domestic Market
The purpose of this report is to analyse the Qantas Group Annual Report for 2013 with a focus on the role of
Qantas in the Australian domestic market. While analysing the Qantas Group Annual Report for 2013, it will
become clear as to why the Qantas Group results have been impacted by the competition from Virgin and Tiger.
Financial Performance within the Qantas Group
For the financial year that ended on the 30th of June 2013, the Qantas Group reported an underlying profit before
tax of $192 million, which translates to a statutory profit before tax of $17 million and a post tax statutory profit of
$6 million respectively. The development of the Qantas Group's strategies set for 2012 and 2013 progressed in
seemingly tactical ways, despite a challenging backdrop in both the domestic markets and international markets
with stellar high fuel prices across the globe and an excess of capacity in Australia concerning domestic low cost
and full service carriers. The international market also faced and continues to face over capacity
When discussing within the realms of the domestic market, importantly Qantas Domestic was profitable

Introduction . Qantas Airlines, Originally Registered As
Introduction
Qantas Airlines, originally registered as the Queensland and Northern Territory Aerial Services Limited is the
largest Australian domestic and international airline and is currently leading as the world's most preferred long–
distance flight airline. Founded in 1920 in the outback of Queensland, Qantas offers their services regionally,
domestic and internationally. Qantas prides themselves by prioritizing safety, reliable services, engineering and
maintenance and customer service with over 10 awards presented to them from the year 2012 to 2016. Due to the
rise of the internet, the airline industry has been heavily affected. Clients can now directly view the range of flights
available and prices from airline websites which ... Show more content on Helpwriting.net ...
In relation to technological environment, clients can easily view the flights available and their respective price
from an airline company website. This has dramatically affected the airline industry in terms of conveniency. Other
than that, research shows over 1,871 million active users of the social media, Facebook in the year of 2017 and
airline companies can take advantage of this vast population by advertising attractive deals where potential
customers can easily arrange a booking (Global Social Media Ranking, 2017). Other than Facebook, there are
several other different social media platforms such as Twitter and Instagram where advertisements can be made.
Social media can also contribute through the other end where reviews of flights can be made. Airline companies
can utilize the reviews to be aware of where they can improve. Qantas Airline are also able to expand their reach to
current frequent flyers through e–commerce, for example, introducing ticketless flights through the use of
technology (Thompson and Gamble, 2012). Furthermore utilizing technology, Qantas has improved its lounge
services by partnering with Skip, a free app which allows customers to order coffee directly from their smartphone
(Airlinetrends.com, 2017).
With regards to market related factor, research in 2015 shows that there is significant growth of passengers
choosing

The Qantas Group
Qantas was first founded in the Queensland outback way back in 1920, and originally registered as Queensland and
Northern Territory Aerial Services Limited (QANTAS). Over the years, it has grown to be Australia's leading
domestic and international airline. It is now widely recognized as the world's prominent long distance airline and
one of the strongest brands in Australia.
The Qantas Group's core business is the transportation of customers using two corresponding airline brands –
Qantas and Jetstar. Since its inception, Qantas has operated a number of passenger airline subsidiaries:
Australia Asia Airlines – operated from 1990 to 1996 to serve the Taiwanese market.
Impulse Airlines – an established airline bought by Qantas in 2001; operations ... Show more content on
Helpwriting.net ...
This was a 6% increase from period YR 2012/2013.
SOCIAL PERFORMANCE
Contributions to Community
The Qantas Group has a strong sense of obligation to support the societies in which they operate. Partnerships,
charitable fundraising, volunteer works by employees and emergency humanitarian aid are being undertaken
throughout the year. In short, Qantas works hard to uphold its position as a responsible corporate entity and an
iconic Australian company. Some of their initiatives and programs are:
Qantas Helping Hands Community
The Qantas Helping Hands Community (QHHC) comprises of keen volunteers who render support by providing
community assistance to those less–privileged in Australia and neighbouring countries. By initiating projects both
locally and internationally, QHHC aims to improve the standards of living in disadvantaged communities.
Workplace Giving Program
In partnership with Charities Aid Foundation (CAF) Australia, Qantas delivers its Workplace Giving Program by
allowing employees to donate to charities of their choice. These charities will then receive the donation in full
amount as all administrative costs will be borne by

The Qantas Emirates Agreement Commenced
The Qantas–Emirates agreement commenced in April 2013. What impact has this partnership had on the two
airlines, and on the market between Australia and Europe? The new Qantas–Emirates agreement that commenced
in April 2013 had a significant impact on both airlines as there were substantial benefits that were now offered to
both airlines customers. The new partnership gave Qantas' customers access to Emirates' vast network in Europe,
the Middle East and North Africa while Emirates customers benefit from gaining access to Qantas' unmatched
Australian domestic and regional network. Meanwhile both airlines customers also enjoy the benefit from the
premium products now offered such as new world–wide lounges, enhanced products in terms of seats, meals and
inflight entertainment as well as frequent flyer programs. The new agreement also gives both airlines significant
advantage in network over its competitors between Australia and Europe.
According to ACCC chairman Rod Sims 'The ACCC considers that the alliance is likely to result in public benefits
through enhanced products and service offerings by the airlines, and improved operating efficiency" and this was
perhaps one of the biggest impacts of this partnership on both airlines. It is certain that the new look of the
premium product offered through this partnership will not only give existing customers a unique flying experience
but also because of its premium appearance and distinctiveness will certainly attract more

Pest Analysis
1.0 Introduction
Qantas Airways Limited was founded in Queensland in Australia in 1920, and it is one of the oldest airlines in the
world. Qantas is the acronym of the Queensland and Northern Territory Air Services. It is the Australia's largest
airline and Australia's national airline. Its parent company is Qantas Group. Qantas Group operates the Australian
aviation industry, including aviation (stock limited liability company operating international routes and Australia),
QantasLink, Jetstar (low–cost airlines), Jetstar Asia, and other aviation–related business. The kangaroo logo of
Qantas is a symbol of reliability, security, advanced technology and quality service.
2.0 Critical Information on Company
Qantas Airways Limited, together ... Show more content on Helpwriting.net ...
These really improved the convenience of flying. So, the aircraft is becoming the main means of transport.
3.1.2 Economic
After a financial crisis turned into the economic crisis, Qantas Airways Limited will inevitably be affected. Today,
global enterprises had to reduce spending in all areas; to reduce business travel is the preferred one (Bonn &
Rundle–Thiele, 2007; Greve, Nielsen, & Ruigrok, 2009). International Air Transport Association recently
published data show that in December last year, the year–on–year passengers in business class and first class
reduced by13.3%. In January this year, Asia–Pacific business class passengers fell by nearly 24 percent and
business class passengers in Europe decreased by 22.2%, respectively. It was a big blow to the aviation industry
(Graham, 2009).
3.1.3 Legal–political
The Australian government is taking measures to help Qantas Airways Limited to tide over the difficulties. British
Airways and Qantas Airways Limited are considering a potential merger, which is considered the most ambitious
initiatives in accelerating the integration process of world 's aviation industry (Duval, 2008). It was a truly global
airline step, because the two sides' route network coverage matched well. If the two companies successfully
merged, the two sides will reduce the waste of resources brought about by coincidence, by the combined route
network expansion, in a number of key revenue synergies and will further consolidate the

Business Report Qantas Airways
BUSINESS REPORT ON QANTAS AIRLINES
Hasblady Leon Ramirez (Sofia)
Student No 31278
Class: BAE 10
16th January 2013
TABLE OF CONTENTS
EXECUTIVE SUMMARY 3 1. INTRODUCTION 4 2. QANTAS ETHICAL EVALUATION 5 2.1. Airlines Safety
as an Ethical Issue 5 3. QANTAS SHARE PRICE EVALUATION 6 3.1. Share Price Definition 6 3.2. Share Price
Behavior 2012 6 3.3. Share Price History 7 4. Recommendation 8 REFERENCES 9
EXECUTIVE SUMMARY
The aim of this report is to evaluate whether Qantas airways is a suitable company for ethical investment. Firstly,
Qantas has currently been incurring in an ethical issue, because it has reduced in almost 50 % its staff in order to
obtain better profits, however, the flight safety ... Show more content on Helpwriting.net ...
After the events in June, the share price has been slightly increasing over the six last months, and the current price
is almost 1.600 points. 4.4. Share Price History
This section of the report discusses the historical behavior of Qantas share price over the past five years. On the
graph, the Y axis indicates the share price in points and the Y axis represents the period of time in years.
Chart No.2 (Australian Securities exchange 2013) http://www.asx.com.au/asx/research/companyInfo.do?
by=asxCode&asxCode=QAN
The graph reports that, the top of QAN share price over the last five years was in February 2008, when the price
was above 4.500 points. Then between 2008 and beginnings 2009 the share price was decreasing slowly until
1.500 points, due to the economic crisis world, which affected the whole world stock market, since 2009 to in late
2010 the price increased and got the maximum in 3.000 points. In late 2010, Qantas had its first restructuring and
started having maintenance failures and safety, which caused the share price fall during the two years and it
dropped by about 1.000 points, however it is beginning to rise now. 4. Recommendation
Qantas is one of the major companies in Australia, and also is an important part of the airline global industry.
However, this report suggest that, it is not an appropriate time to invest in this company, because the company is
going through financial

Financial Distress & Air Line Industry
UNIVERSITY OF MYSORE
DEPARTMENT OF STUDIES IN BUSINESS ADMINISTRATION
B. N. BAHADUR INSTITUTE OF MANAGEMENT SCIENCES
MANASAGANGOTRI MYSORE 570006
KARNATAKA, INDIA
Seminar Paper on
Financial Distress and Restructuring
A Case Study of
Air India Ltd & Kingfisher Airlines Ltd
Submitted to
Dr. B. Shivraj
Professor, DOSBA, UoM
Submitted by
Mr. Prasad V. Daddikar
MBA IV Semester, Roll No. 50
Reg. No. 10MBO102
INTRODUCTION
Financial distress is a term in Corporate Finance used to indicate a condition when promises to creditors of a
company are broken or honored with difficulty. Sometimes financial distress can lead to bankruptcy. Financial
distress is usually associated with some costs to the company; ... Show more content on Helpwriting.net ...
Such models have been used by commercial banks and creditors to assess the creditworthiness of commercial
users, by investors to measure a firm's risk of insolvency, and by business managers to assess and manage the
financial turnaround of distressed companies.
PERFORMANCE MEASUREMENT OF INTERNATIONAL AIRLINES
The airline industry, like many other industries, is increasingly exposed to competition. Increased competition has
two effects on firms: it creates downward pressures on output prices, and it creates incentives for improving
productivity and efficiency. Many airlines have been forced to undertake major restructuring in order to meet these
challenges. Many researchers have used different model to decompose changes in airline profitability into two
components: productivity and price recovery ability. The study concluded that increased competition in
international air transport markets has put pressures on carriers' ability to raise prices. However input prices, like
labor, fuel, materials, flight equipment, ground property and equipment have been increasing. They also
demonstrated that airlines have made tremendous effort to improve efficiency to counteract such trends, yet large
fluctuations in profitability are still an ongoing reality. Due to these fluctuations in airline fortunes, early warning
systems of imminent distress are of benefit to management and airline stakeholders such as creditors and investors.
No prediction

Qantas Case Study Essay
Strategic Analysis – Qantas Case study
Introduction
Qantas Airways Limited was found in Queensland in Australia back in 1920. Both domestically and globally
Qantas airline has grown to be the largest flight destination as well as the oldest in all Australia. In the airline
industry, Qantas puts more effort to lead the industry. The company guarantees the safety of the clients.
Additionally, the company is well known for its sufficient operations that are meant to provide quality customer
service. The airline created Qantas and Jetstar, two strong brand reputations. Jetstar is concerned about
differentiation, low prices, and cost advantage. Additionally, Jetstar is a subsidiary of Qantas. It is a private airline
business independent from the ... Show more content on Helpwriting.net ...
This will help receive the clients' satisfaction.
Human Resource Qantas should put more focus on the human resource. There is the need to provide enough
coaching to its personnel to ensure the client's fulfillment. The brand recognition is equally crucial. Qantas Airline
needs to provide the sustainable level of safety and security to avoid damage to the reputation of the brand and the
company as a whole. It should invest highly to bring in the best ideology to conserve the company's objective.
Providing the best security and well being can build the brand recognition.
Conclusion
The company has both full service and premium brands. They create their brand reputation globally by providing
exceptional products and services to customers. Safety and advanced technology is one of the services the
company stresses on and followed by human resources and environmentally friendly services. Additionally,
domestic and international competition threatens the company that can weaken Qantas band recognition. Through
fewer accidents and sufficient services, competitors can grab the market share and develop brand loyalty.
Therefore, for Qantas to remain competitive in the industry there should be sustainable and qualitative

Jetstar Analysis
Assessment 1
Lam Minh Tho
397906
Prepared for: Phillip Dowling
Jetstar's History
It is a low–cost airline headquartered in Singapore. It is the Asian offshoot of Qantas's Jetstar Airways. It operates
services to regional destinations. Its main base is Singapore Changi Airport. On April 16, 2008, the company
announced that it had achieved profitability for the year ended March 31, 2008, with an increase of 20 per cent in
the number of passengers carried and a passenger load factor of over 75 percent, an increase of 4 percent over the
previous year.
| IATA
3K | ICAO
JSA | Call sign
JETSTAR ASIA | | Founded | 2004 | Hubs | Singapore Changi Airport | Frequent flyer program | Qantas Frequent
Flyer | Member lounge ... Show more content on Helpwriting.net ...
* Jetstar / Valuair in Singapore
* From Singapore, Jetstar and Valuair fly to 17 destinations in ten countries including Bangkok, Ho Chi Minh City,
Hong Kong, Macau, Kuala Lumpur, Kota Kinabalu, Kuching, Penang, Siem Reap, Phnom Penh, Manila, Taipei,
Yangon, Bali, Jakarta, Medan and Surabaya with a fleet of seven A320 aircraft. * Jetstar Pacific in Vietnam
* Jetstar Pacific operates an existing six aircraft fleet including 5 Boeing 737s and a single Airbus A320 to seven
destinations across Vietnam.
Passenger numbers
While the November figures still put domestic yields in the month as down by –8.9% compared to 2008, and
international yields off by –23.2% Qantas clearly sees signs of improvement after the New Year, which is also
when the dilution of yields by massive discount sales of forward inventory earlier this year should be coming to an
end.
This view is also confirmed by a separate Qantas announcement today that it is restoring some of the domestic
capacity cutbacks of the past year from the end of March.
PESTLE
* Political and legal: the political and legal affect immediately to company operation. The changing of laws, the
control from government which can change strategic management of Jetstar and it can impact to annual profit. | *
Economic: the prices of oil, fuel, and diesel..etc are main factors impact the Jetstar airline | * Technology: Fuel
efficient

Strategic Management Essay
Strategic Management
Content:
1. Background of Qantas
2. Analysis of Qantas
External analysis
a. What industry is it?
b. General environment analysis
c. The industry environment
d. Competitive environment
e. You now have material about opportunities
Internal analysis
f. The firm's resources, tangible and intangible
g. Capabilities identification
h. Core competency analysis
i. Value chain analysis
j. Weakness
k. Pulling it together
l. Current strategies
3. Recommendation & Strategies
4. Conclusion
5. Reference
6. Appendix
Background of Qantas Qantas is a flag carrier airline in Australia which established in Winton, Queensland since
November 1920 and the second oldest airlines in the ... Show more content on Helpwriting.net ...
It obstructs the development of Qantas Airways said by Mr Abbott. The rule also limit their international marketing
expertise to improve Qantas which make Qantas cannot move on in aviation industry. Also, bilateral restrictions
block it flying. As the result, Qantas difficultly fight with other competitors such as Virgin Australia and Singapore
Airlines.
Sociocultural
In 20th century, women are commonly in the workforce, some of them flight for business purpose. The airline can
provide some specific products and services for women during their onboard. Nowadays, customers have the
expectations of customer service are higher than before. Customers demand of quality services, innovative
products and special experience during onboard.
Technological
Nowadays, science and technologies change rapidly. The demands of passengers will be change; they would expect
a higher level of products and services of airline than before. Qantas must apply more and more new technologies
by upgrading their products and facilities. Moreover, Qantas has to deliver innovative products and facilities so as
to attract more and more loyalty customers.
Global
Political events, diseases and terrorization will cause influences of the demand of flights; commonly, people will

afraid of their safety on the aircraft and the affecting areas, and also their health of bodies. For example, 11/9 terror,
SARS disease and shut down

Porter's 5 Forces on Airline Industry
The budget airline industry in Singapore presents an interesting situation for analysis. It has 3 main local players
plus a foreign player, namely Valueair, Tiger Airways, Jetstar Asia Airway and Airasia but Jetstar Asia Airways has
effectively merged with Valueair. There are also possibilities of more foreign budget airlines operating in
Singapore, and big airlines may also slash their prices to compete with the budget airlines. The higher fuel price,
terrorist threat and restrictive govt policies regarding open air travel right are some of the challenges in this
industry. Use Porter's five forces model to critically analyse the budget airline industry. (100 marks) ... Show more
content on Helpwriting.net ...
Such supplier power will be less should they choose not to buy their planes from Boeing and Airbus and go on to
purchase second–hand aircrafts from elsewhere instead.
5. Bargaining power of buyers
The power of buyer is moderately high because the access to the internet allows customers to have close to full
information on prices charged by the LCCs. Price sensitive customers and first time fliers tend to go for the ‘most
value for money' deals and thus it's more of a ‘win–win situation' for the consumers as the respective LCCs slash
their prices now and then to gain a temporary advantage.
Conclusion
As the competition intensifies, it would be ideal for LCCs to not only concentrate on cost–cutting measures but to
pay attention to key aspects like branding to attain a decent market share. Airasia is a fine example where they
have gone on to promote themselves on the global frontier by being the sponsor for ‘Amazing Race Asia'. They
have also extended their sponsorship deal with Manchester United football club to jointly promote the tourism
industry in Malaysia.
Within the organizational structure of the LCCs, certain improvements can be made. The LCC should move
towards a flexible structure that enables streamlined communication and knowledge transfer between all levels.
Also though expanding flying destinations routes to countries like India and Hongkong seem favourable, LCCs
should ‘think

Advantages And Disadvantages Of Qantas
Corporate Social Responsibility (CSR) encourages companies to take interest of all stakeholders into consideration
during their decision–making process and not make their choices based solely upon the interest of their
shareholders. By bring socially responsible, the company would make choices that protect social welfare which
can have an impact on the buying decisions of the customers and building a reputation for the company as to
whether the company is trustworthy or ethical.
Employee
As mentioned above, Qantas has announced its plan retrench up to 5,000 of their full–time employees. Employees
are one of the most important stakeholder of the group, by sacking 5,000 full–time employees would definitely be
a disadvantage on the stakeholder and an advantage on the shareholders. This may be the results according to the
shareholder theory where it is mentioned that the firm should stay focus on creating wealth for its owners and
allow the government establish legal framework to adjust the social problems. This means that the firm does not
take into any interest as to what it is doing could be socially unacceptable; leaving the issues unsolved, in hope that
the government will take care of the social issues left behind by the firm. Free market will eliminate firms engage
in unethical operations by ... Show more content on Helpwriting.net ...
This shows that Qantas has been depending on socially unethical methods to gain maximum profit. Furthermore,
the group was being fined of more than A$160 millions for conspiring with other airlines to increase the price of
freight through imposing of fuel and security charges between 2006 and 2000. (Ironside 2014). This is, perhaps the
reason why Qantas is striving hard to improve their technical services in hope to attract customers with new
technology and hopefully to improve the damaged

Advantical Analysis Of Qantas Airways Limited
Rivalry among Competitors: High.
Domestically Qantas Airways Limited has only one competitor in the market, that being Virgin Australia Holdings
Limited creating a duopoly. As they are parent companies of smaller airlines. Both companies offer a cheaper
airline option (Qantas' jetstar and Virgin's Tiger airways) as well as a more corporate option (Qantas and Virgin
airlines).
Threat of new Entrants: The threat of new entrants within the airline industry is very low. This is due to the high
barriers to entry found within the market. The major barrier being the high capital investment required in order to
start a new airline. With planes costing millions of dollars as well as starting up routes. The industry is also very
heavily regulated by the Australian government through the Civil Aviation Safety Authority and Airservices
Australia. Airlines need to hold an Air Operators Certificate under the Civil Aviation Act 1988, as well as meet
standards set out by the Civil Aviation Safety ... Show more content on Helpwriting.net ...
Firms will offer loyalty to programs to frequent flyers. There will always be people needing to travel, therefore the
customer base will be never removed from either Qantas or Virgin.
Bargain power of Suppliers: There are multiple suppliers to the airline industry. They are the aircraft
manufacturers, the catering companies who supply the food and drink for the flights, the petrol companies and
finally the airport themselves.
When looking the aircraft manufacturers (Boeing and Airbus), the bargaining power is low. This is due to the
airline industry being the only major source of income for these companies, this is also a costly product to both
manufacture and purchase, costing millions. Airline companies are generally locked into favourable contracts with
these companies and show loyalty to

Jetstar Case Study
Jetstar Airways is an Australian low–cost airline headquartered in Melbourne, Australia.[3][4] It is a subsidiary of
Qantas, created in response to the threat posed by low–cost airline Virgin Blue (now known as Virgin Australia).
The airline operates an extensive domestic network as well as regional and international services from its main
base at Melbourne Airport,[5] using a mixed fleet of Airbus A320 family and Airbus A330 aircraft. Parent
company Qantas also has stakes in sister companies Jetstar Asia Airways and Valuair in Singapore, Jetstar Pacific
Airlines in Vietnam and the new Japanese carrier Jetstar Japan. Jetstar shares its parent's strong competition with
Australia's biggest low–cost carrier Virgin Australia. Both Tiger ... Show more content on Helpwriting.net ...
Jetstar Airbus A330–200 about to land at Sydney
In July 2007, Qantas acquired a 18% stake in Vietnam's Pacific Airlines, to increase to 30% by 2010. The airline
was relaunched on 23 May 2008 as Jetstar Pacific. On 1 August 2008 Jetstar announced that it had signed an
agreement with the Northern Territory Government to make Darwin International Airport an international hub with
plans for seven aircraft to be based in Darwin. Under the agreement Jetstar would be required to base three aircraft
at Darwin by June 2009, with a further four by June 2012, with the Territory Government to provide A$5 million to
set up the hub and a further A$3 million for promotion of the new routes.[12] On 28 April 2009, Jetstar
commenced daily direct services from Auckland to Gold Coast and Sydney. On 10 June the same year Jetstar
commenced domestic New Zealand flights between Auckland, Wellington, Christchurch and Queenstown. Jetstar
replaced Jetconnect on these routes using Airbus A320 aircraft. From 1 February 2011, Jetstar started its co–
operation with the oneworld alliance, allowing people booking an itinerary with a full oneworld member to include
a Jetstar flight in the itinerary. However, the flight must be sold via Jetstar's corporate parent Qantas, under a QF
flight number.[13] In August 2011 Jetstar's parent Qantas announced that it will set up a new airline to be called
Jetstar Japan,

Case Study Of Qantda
Introduction of Fruity Fro–yo
Fruity Fro–yo is a premium global frozen yoghurt franchise, founded by Peter Cheng in 2007. The first store to be
established was located in Mona Vale and ever since they have gradually expanded as a business, with stores
located in the likes of Singapore, Fiji, Vanuatu, and throughout Australia.
Introduction of Qantas
Founded in 1920, Qantas has grown to be Australia's leading domestic and international airline. The company has
built "a reputation for excellence in safety, operational reliability, engineering and maintenance, and customer
service." Today, Qantas offers services across 182 destinations in 44 countries, which include Australia, Asia and
the Pacific, the Americans, Europe, the Middle East and Africa.
Within this report it will discuss the different ... Show more content on Helpwriting.net ...
– Sesonal demands means that Qantas must operate to a flexiblity performance objective to be able to adjuct to
major increases in passenger demand.
– Jetstar, with its variable fare (and baggage/catering options) structure demonstrates flexibility in product and
prouct mix. Jetstar is Qantas' response to the competition of low cost carriers.
Customisation
= Being ABLE TO PROVIDE MORE OPTONS
– Means giving Qantas customers more options by varying the product in minor ways
– Its membership is the Oneworld Alliance means I can offer services to more than 680 destinations in 134
countries
– Variation in product is done by offering jetstar as a no frills alternative and offering different classes of seating.
Cost
= Being PRODUCTIVE
– Qantas has an interest in keeping their costs as low as is compatible with the levels of quality, speed,
dependibility and flexibility that their customers require.
Supply Chain

Understanding The Communication Audit And Goals, Before...
Table of content
1 Introduction.................................................................................2
2 Definition....................................................................................2
2.1 What is communication audit?.....................................................................2
2.2 What is communication audit trying to achieve?.........................................2
3 Qantas........................................................................................3
3.1 Identify Qantas's current target audiences and their perception and
motivation............................................................................3
3.2 Identify Qantas' goals ..............................................................3
3.3 Methods to assess perception of current communication......................4
3.4 Identify issues and opportunities...................................................4
3.5 Identify the effectiveness of Qantas' internal and external communication...4
3.6 Identify and comparison with ... Show more content on Helpwriting.net ...
How supportive is the internal environment for public relations activities?
What is the goal or mission of the organization?
What the issues raised from their previous performance?
What are the strengthen or weakness of the current situation?
What sort of measures the organization need to take to address these issues? Etc.
2 Definition
2.1 What is communication audit and?
"A communication audit is a systematic research method, which will identify the strengths and weaknesses of your
current internal and external communications."
An effective communication audit will help organization find out how they deal with their communication with
their stakeholders in the past and identify the current internal and external issues within and without the
organization.
2.2 What is communication audit trying to achieve?
First identify the issues in the real world scenario. By researching and evaluating the organization, give a report of
the present situation that the organization is facing to with SWOT methods. Also identify who is the stakeholder

and what's their perception about the what Qantas has done so far. By the end, this audit will also provide a
recommendation and steps to fix the issues thus creating another flying start for the organization.
3 Qantas
Australis's largest Airline, Qantas, serves both international and domestic air flights, has over 8200 flights every
week with 33,600 employees and 8 million

Financial Analysis : Qantas Airlines
FINANCIAL ANALYSIS
SUBMITTED BY:
PRIYA BINDRA–12978038
ALISHA DESHAR–13058812
AVTAR SINGH BHANGRA–13032771
TABLE OF CONTENTS
EXECUTIVE SUMMARY......................................................................................................................................3
INTRODUCTION..........................................................................................................................................................4
BUSINESS PERFORMANCE................................................................................................................................5
COMPETITORS 6
DISCLOSED AND PAID DIVIDENDS 7
OTHER ITEMS 7
FINANCIAL STATEMENT ANALYSIS.............................................................................................................7
CONCLUSION 13
APPENDIX..............................................................................................................................................................15
Qantas Cash Flow Statement for the year 2016 15
Profitability ratios 16
Liquidity ratios 16
REFRENCES................................................................................................................................................................17
EXECUTIVE SUMMARY
Qantas Airlines Limited is an ... Show more content on Helpwriting.net ...
Nonetheless as stated, the 2016 Annual Report reported a significant improvement Profit before Tax which is
almost 60% higher than the 2014 and 2015 results.
INTRODUCTION
This report's main purpose is to provide an overall analysis of the performance of Qantas Airlines Limited which
despite being Australia's largest local and international airline, QANTAS has been struggling with financial matters
since 2011 due to specific adjustments in the guidelines of accounting such as the assets impairment. It has also
forged an alliance with the Emirates Airlines which is based in the United Arab Emirates. There has been a notable
concentration on the reduction of the size of its fleet and number of jobs to mitigate the losses it suffered in 2004.
While Qantas airlines are its primary business, Qantas limited comprises five sectors including JetStar Group,
Qantas Freight, Qantas Loyalty, Qantas Domestic and Qantas International. This company offers, in addition to
transport of people and freight, logistic services. These include trucking services from state to state. It provides
these services to not only international air cargo courier services but also small and medium size businesses and
individuals. The company also offers these trucking services to a range of baggage services.
The Company's main strategy is delivery of sustainable returns to shareholders while focusing largely on safety.
However, the advantageous

Qantas Swot Analysis Essay
SWOT Analysis
Strength
Improving Margins: As economic showing a significant progress, Qantas margins are also improving.
Diversified Business :
Qantas range of subsidiary business operates in different sector but all of them supporting airlines industry's
activity, such as catering, baggage handling and engineer. This also helped them to control supplier and aircraft
maintenance cost.
Oneworld Alliance
Oneworld Alliance is a management company founded by Qantas, American Airlines, British Airways, Canadian
Airlines and Cathay Pacific. Purpose of this centralized management company is to helping each other with non‐
core business activity such as marketing, engineering/maintenance, and online ticketing to reduce cost thus give ...
Show more content on Helpwriting.net ...
Entering New Markets of low‐budget airlines with potential huge customer.
Introduction of A380 :
The world's biggest jumbo jet is an attraction of its own. It offers an ultimate comfort for passenger especially
during long haul flight. Airbus A380 still excited people and plenty of customer chose Qantas for an experience of
flying in world's largest, luxurious and technologically advanced aircraft.
Threat
Consolidation in Airline Industry
Long haul route between Australia and United States is Qantas' second‐most important international market. It's
now come under threat since the merger between United Airlines and Continental to form world's largest airline.
United Airlines‐Continental now aiming Australia market,
Volatility in Fuel Prices
Oil price instability in 2008 resulted in sky rocketed airline tickets. Together with global economic crisis, airlines
were in the next in line of collapsed list. Qantas survived by slashed numbers of its employee, but numerous
worlds' major airlines were not so lucky.
Shrinking Aviation Industry
Aviation industry got hit real hard as a result of global financial crisis. Nov '08 IATA' traffic data showed a 4.6%
drop in international passenger traffic and 13.5% drop in international cargo and stated that the worldwide aviation
industry "shrinking by all measures". During this hard time, Qantas made a

Airlines in Australia
A STRATEGIC ANALYSIS REPORT
[pic]
Content
1. Executive Summary 3
2. PESTEL Analysis 4
Political 4
Economic 4
Social 4
Technology 4
Legal 4
Environmental 5
3. SWOT Analysis 6
Strengths 6
Weaknesses 6
Opportunities 6
Threats 6
4. Competitive Analysis 7
a. History and competition/joint ventures 7
b. Industry size, routes, hubs and passenger numbers 9
5. Financial data 2008 14
6. Jetstar 15

New Mission Statement 15
New Value Statement 15
Strategic Objectives 15
Key Strategies 15
1. Executive Summary
In this strategic analysis report I as senior manager of Jetstar have developed PESTEL analysis, SWOT analysis,
competitive analysis, created new mission and value ... Show more content on Helpwriting.net ...
|
|Increasing number of destinations |Economic crisis – people saving and not spending for travelling|
|Increasing number of planes |Natural disasters – Islands volcano, earthquakes, tsunami |
|Increase frequency of flights |People worried about safety – terrorist attacks, diseases |
|Increase marketing |(swine flu, H1N1 influenza) |
|Improve technology |People using more other kinds of transport – cars, buses, |
| |trains |
4. Competitive Analysis
At the moment Australian passenger airline industry is dominated by thee large domestic carriers: Quantas, Jetstar
and Virgin Blue.
a. History and competition/joint ventures
Jetstar
Jetstar Airways is an Australian

Airline Industry Analysis 3
[pic]
The World Airline Industry
A European Perspective
(Case Study)
MCS–M–160
International Strategy
Student Name: Siyuan Li
Student ID: 2800712
Unit Coordinator: Robin John
Question 1
Through PESTEL analysis, identify the major external environmental drives influencing the airline industry. Since
the end of the case (2003), to what extent have these driving force changed?
Question 4
Analysis the business model of the low cost airline, discuss their competitive strategies, and their future prospect in
the Europe airline industry?
Contents
Introduction..................................................4
PESTEL Analysis...........................................5
Future Development on
Airline Industry ............................................8 ... Show more content on Helpwriting.net ...
People were afraid of flying, which led to a decline in passenger traffic.
Terrorists
The world airline industry was severely shaken by the terrorist events of 11th September 2001, and this is directly
result in a catastrophic fall in personal air travel. After that, the security level was increased at all the airport, that
result in high cost put into airline industry, due to more personnel and further expensive security applications.
More security leads to increase waiting times, makes air transportation less attractive.
Economical
Economical can be another major factor for the airline industry. Airlines ' profitability is closely tied to world

economic growth and international trade. Due to the rate of war and terrorist event, the growth rate of economy
dramatic slowdown, capacity in Europe outstrips demand, which gains the low yield to the airline industry. The
airline industry is now faced with significant capacity overhang and high cost platform, especially in the US. The
report shows that, two major airlines American Airline and United airline losses of more than US$ 3billion for
2002, which makes world airlines get struggle.
Moreover, oil prices increasing also affecting their profits. The price of fuel increasing which lead to the more
money will put into ticket. Therefore the passenger demand will decrease. In recent, especially for the

Essay on Qantas Case Study
QANTAS
CASE ANALYSIS REPORT
MARK ANTHONY ANDRIJCICH
STUDENT NUMBER – 10513924
MGMT3347 – STRATEGIC MANAGEMENT
SEMESTER 2, 2011
TUTORIAL 4 – MONDAYS, 15:00
ROOM BUSN:161 – THE CULLITY TUTORIAL ROOM
TUTOR – DOUG MOFFAT
INDIVIADUAL CASE ANALYSIS REPORT
TABLE OF CONTENTS
EXECUTIVE SUMMARY....................................................3
EXTERNAL ANALYSIS OF QANTAS..............................4 ––Industry ––General Environment Analysis ––Six
General Elements ––Demographic ––Economic ––Global ––Political/Legal ––Socio–Cultural ––Technological
––The Industry Environment ––Michael Porter's 5 Forces That Shape Strategy ––Competitive Environment
INTERNAL ANALYSIS OF ... Show more content on Helpwriting.net ...
It operates in the low–cost airline segment through Jetstar. It is also engaged in providing time bound freight
services. Other services offered by Qantas include international and domestic holiday tours, catering, ground
handling, and engineering and maintenance services. The company also offers group flight training, and leverages
its infrastructure and competency for operational training. It also provides services for defense sector in aircraft
and engine maintenance, among others. Qantas is headquartered in Mascot, New South Wales, Australia (Qantas
2011b).
EXTERNAL ANALYSIS OF QANTAS
INDUSTRY
Qantas Airways Limited is in the airline and aviation industry–both domestic (Australian) and international. Its
main business is the transportation of passengers using two complementary airline brands–Qantas and Jetstar
(Qantas 2011a)
GENERAL ENVIRONMENT ANALYSIS
DEMOGRAPHIC
Growing Size of the Middle Class. The size of the middle class is growing globally and many of them like to travel
internationally as often as their work life and bank balance allows (Hanson 2010).
ECONOMIC

The Global Financial Crisis (GFC). The late–2000s financial crisis is considered by many economists to be the
worst financial crisis since the Great Depression of the 1930's (Reuters 2009). The impact of the GFC on airlines
has been severe, putting the industry in major trouble that may be prolonged (Hanson 20011, p. 439; Qantas 2009).

Marketing Situational Analysis Report
GSBS 6005
Situational Analysis Report
VIRGIN AUSTRALIA
Executive summary.................................................
1. Introduction.......................................................
2. Product line.......................................................
3. Market analysis................................................... 3.1 Target market analysis 3.2 Market share 3.3 size and growth
4. Market mix strategy analysis...................................
5. Competitor analysis.............................................. 5.1 Analyze Qantas 5.2 Analyze Tiger
6. Macro environment analysis....................................
7. SWOT.............................................................
8. Issue identification................................................ 8.1 Market risk issue 8.2 Profit issue
9. Conclusion..........................................................
10. Reference lists...................................................
Appendix: SWOT analysis of Virgin Australia....................
EXECUTIVE SUMMARY
This report is ... Show more content on Helpwriting.net ...
At the initial stage, Virgin Australia Airline only offered a sole class both in domestic airlines and short hauls
international airlines. Afterwards, Virgin Australia began to operate the long–hauls international airlines and
developed more classes. At 2007, Virgin Australia planned to add long–hauls international airlines to the original
product line, and launched a premium economy class to both short and long hauls international airlines in 2008.
Until now, the product line of Virgin Australia's international airlines becoming more diversified. For short–hauls
international airlines, the jet aircrafts of Virgin Australia augmented a business class service. Some aircrafts also
aggrandized premium economy class, this class only a little bit expensive than economy class. However, premium
economy class can make more pleasant experience for all customers, such as the seat pith in premium economy
class is wider than economy class. According to the data published by Virgin Australia airline, the seat pith of
premium economy class is more than 34 inches, but the seat pith of economy class only has 31 inches. Moreover,
same with the short hauls international flight, Virgin Australia also expanded business class and premium economy
class in long hauls international airlines. However, the different is the long hauls international airlines have more
humanized services. It added certain new items to original product line. For example, in business class, the seats
are

Why Is Qantas So Important To The Australian Aviation...
The Australian aviation industry faced toughest operating environment in the past 2 years driven by increased
capacity in the domestic and global market, weak consumer sentiments after repetitive plane crashes, the ever
rising and unstable oil prices and the economic uncertainty prevailing due to global economic crisis. Qantas
introduced transformations in the form of maximising cost reduction, right–sizing fleet and network by reducing
the staff, working existing assets harder, deferring growth, aligning capital expenditure to financial performance
and accelerating simplification which are hard yet necessary precautions to be maintained for a profitable and
sustainable future (Anon., 2014, p. 5). Qantas recorded $204 millions of benefits in the second half of 2013/14 due
to the transformations even though Qantas recorded a loss of $646 million loss before tax, associated with an
increase in fuel price by $253 million compared to 2012/13 and revenue decline of $550 million. Demand reduced
drastically in the domestic market with decrease in consumer spending as an impact of low business activity in
mining and government sectors (Anon., 2014, p. 6). Qantas introduced leaner, focussed and sustainable
transformation reducing unit cost by 3%, and only if there is relative international and domestic capacity growth, ...
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The statutory loss after tax of $28.3 million is an improvement of $74.8 million on the corresponding period, and
has positive group yield growth and domestic yield growth. The Underlying Cost per Available Seat Kilometre
declined in the current period as a result of company's cost reduction program (Anon., 2015). Though the
international revenue was down domestic yield increased, Virgin increased its domestic revenue for the corporate
and government sector yet did not pay any dividend (MA,

Competitive Strategy for Low Cost Airlines
Proceedings of the 13th Asia Pacific Management Conference, Melbourne, Australia, 2007, 431–436
Competitive Strategy for Low Cost Airlines
Hongwei Jiang
RMIT University, Australia
Abstract The aim of this paper is to identify challenge faced to Low–Cost Carriers (LCCs) or Low–Cost Airlines
and provide new insights into the development and competitive strategy for LCCs. LCCs are still a relatively new
phenomenon in Australia since Virgin Blue and Jetstar came to the market. There are over 30 LCCs have been
launched since 2002 worldwide. In fact, LCCs have been very successful in the USA and Europe since 1990s. For
example, in 1994 less than 3 million passengers flew on LCCs. In 1999, five years later, this figure had risen to
about 17.5 ... Show more content on Helpwriting.net ...
Today, Southwest Airlines operates more than 3,100 daily flights to 62 cities across the United States, and registers
yearly more than 80 million passengers. What began as a small Texas airline, Southwest now has grown to become
one of the largest airlines in the United States1. European history of low–cost airlines is much younger, but those
airlines are for sure trendsetters of the 1990s. The expansion of LCCs in Europe coincided with the final
deregulation of the market during the 1990s. Genuine lowcost operations began in Great Britain in the 1990s with
the Irish company Ryanair (founded in 1985 and started operating flights in 1986), which was patterned on
American Southwest Airlines. Following Great Britain, LCCs have successfully developed on the Continent
(Grotte, 2005). In the year 2005, there are 60 low–cost airlines operating in Europe2. Prior to 2002, there were no
significant low cost scheduled carriers operating in the Asia Pacific rim. The initial slow development was in part
due to the perception that the low cost model adopted in the United States and Europe could not be replicated in
Asia, because of the longer aircraft stage lengths, lack of secondary airports and regulatory restrictions preventing
access to international markets. The latter being particularly relevant given

Benefits Of The Client Virgin Australia
Introduction
In this business report, the management problem and research needs of the client Virgin Australia will be
presented, as well as research about the company and its industry in order to proceed with market research in
solving the management problem. Virgin Australia has many sources of information to be consulted, and they have
no limitations on the type of research methods used. The budget for this project is approximately $60,000, and this
project is to be completed by 1 July 2016.
Business Overview
Air travel is a very competitive industry, with people choosing flight as a time–efficient mode of travel to get to far
away destinations for leisure or work purposes.
Virgin Australia Airlines is Australia's second largest airline after its main competitor Qantas. Formerly known as
Virgin Blue, it was founded by British businessman Richard Branson and former Virgin Blue CEO Brett Godfrey
in 2000. It is primarily a domestic flight service, with short–haul international flights to neighbouring countries and
islands such as New Zealand and the Cook Islands launched in 2011. After being listed on the Australian Stock
Exchange in 2003, Virgin Australia expanded their focus to gaining a greater share of the corporate market. They
introduced a new frequent flyer program, online and self–service check–in, and flexible airfares to attract the
business traveller. Virgin Australia aimed to increase the quality of their service to compete with new competition
from Qantas' new

Qantas History Essay
History
Qantas was founded by the Paul McGinneses, Hudson Fysh, Fergus McMaster and Authur Braird in Winton,
Queensland on November 1920. Qantas is one of the largest airline in Australia and one one the oldest airline in the
world. The story began when Paul Mc Ginnes and W Hudson Fysh heard of the award of $20,000 prize offered by
the Government for the first Australians to fly in 30 days from England to Australia. The company was established
under the name of The Wstern Queensland Auto Aero Service Limited, abbreviated to the ' QANTAS'. the first
scheduled air service between Charleville and Cloncurry was in November 1922.
Its first head office was destroyed by fire in Longreach and now occupied in Brisbane since 1929.
Industry and product service ... Show more content on Helpwriting.net ...
Types of services of Qantas
In–fight entertainment systems installed on its aircraft, passengers could watch movies, read newspapers and listen
to music that are provided in all classes. The airline's inflight magazine is Qantas The Australian Way.
Cabin
Firstclass is available in the Boeing 747,International Airbus A330–200s, the A330–300 and Airbus A380.
Premium economy class is only available on Airbus A380 and all Boeing 747–400 aircraft . It can be seen as a
higher economy class but does not offer complimentary access to the Qantas premium lounges. Finally, all Qantas
mainline passenger aircraft is also provided economy class.
Directors
Leigh Clifford,AO – Chairman and Independent Non–Executive Director – November 2007.
Mr Clifford is a Director of Bechtel Group Inc. and Chairman of Bechtel Australia Pty Ltd, the Murdoch Childrens
Research Institute and the National Gallery of Victoria Foundation. Mr Clifford was Chief Executive of Rio Tinto
from 2000 to

Jetstar Airlines History
TABLE OF CONTENTS
History of Jetstar Airline––––––––––––––––––––––––
Task 1–––––––––––––––––––––––––––––––––––––––––––––––––––
Task 2–––––––––––––––––––––––––––––––––––––––––––––––––
Task 3–––––––––––––––––––––––––––––––––––––––––––––––––––
Plagiarism–––––––––––––––––––––––––––––––––––––––––––––––––––––
Task 1
Explanation –
The Jetstar group is a network of value based airlines that provide affordable Austrlia,Newzealand and pacific
region.It is launched in 2004 and they have flown over 130 million passengers and become the largest low cost
carrier in the asia pacific by revenue .Their business mission is to offer 24/7 low fares enable more people to travel
to different places,more often .In the beginning they started with 400 emplyees but now they have more than 7,000
multilingual employees and embassadors across asia pacific today.They have group consists of five airline are Jet
star Australia and Newzealand (Wholly owned by quantus group). Jet star asia in Singapore ,Jetstar pacific in
vietnam,Jet star Japan and Jetstar hongkong. Jetstar brand airlines have combined fleet of more than 110 aircrafts.
Performance of Jetstsar till now –
Jetstar understands the importance of getting you to your chosen destination on time, every time .We strive to
operate every flight and meet every departure and arrivel time shown in our publisihed schedule and to do so
without compromising safety. Jetstar uses the computerized Aircraft

Change Model
The aim of this essay is to critically analyse the background of the Qantas and its decision to launch Jetstar on May
2004 that operated around 800 flights a week across network of 14 destinations within Melbourne, Sydney and
Brisbane. Secondly, this essay will evaluate how Data Collection Feedback Cycle change model is used to gather
major information and to critically analyse it. Thirdly, this essay will critically evaluate the background of Qantas
and Virgin Blue and will also highlight various reasons that eventually led the Qantas group for the launch of the
Jetstar. Fourthly, this essay will also critically analyse the revenue and profit performance of Qantas prior the
introduction of Jetstar i.e. 2002. Fifthly, it will continue to ... Show more content on Helpwriting.net ...
However, Impulse facing a major trouble in the cash flow agreed on May 1, 2001 to hand over its operations to its
biggest rival, Qantas Airways. As per the deal Impulse stopped its passenger service under its own name on May
14 and leased 21 aircraft as well as cabin crews and pilots to Qantas. The deal led the stock of Qantas heaved by
26% closing at $3.40 per share giving Qantas a significantly stronger position in the Australian market (Gaylord,
2001). Qantas, Australia's leading domestic and international carries launched a budget airline called Jetstar in May
2004 (Qantas annual report, 2004). With Jetstar Qantas's aim was to cover the low fare segment of the aviation
industry, which came into existence in the year 2000 with its competitor, Virgin Blue. Virgin had been successfully
eating up QANTAS market share by attacking it from below as a no frills provider. In 2001 the collapse of Ansett
in domestic market, led Qantas to lease extra flights, add hundreds of special flights in order to help stranded
travellers due to Ansett crisis. At the time Qantas flew more than 50,000 former Ansett passengers for free and
other 65,000 on heavily discounted fares. Due to this Qantas was able to deliver a profit before tax of $631m and
net profit after tax of $428 million at the end of 2002, 30 June, despite of the fact that the

Qantas Life Cycle

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