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Qantas company report
How has the global market affected Qantas
External environment analysis of Qantas
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Qantas Airways Limited (Qantas) is an Australian based airline group, engaged in the operation of both domestic and international air transportation services. Qantas, with revenue of almost sixteen billion dollars in the 2013 Australian financial year (Qantas Airways Limited, 2013), competes in four main market segments with business units including Qantas Domestic, Qantas International, Jetstar and Qantas Loyalty. Within these business units, Qantas also operate a range of synergistic subsidiaries including Q Catering, which provides food and beverage services of all its airline business along with Q Freight, Australia’s largest independent air freight services Supporting the airline operations is the investment or partnership in a range of infrastructure holdings, including terminals and passengers lounges throughout the world (Qantas Airways Limited, 2014).
Qantas has maintained a consistently strong share in the local market, holding some 65% of the domestic travel business and 85% of corporate travel markets (Qantas Airways Limited, 2013). Conversely, the airline has faced increasing international market share pressure, with increased competition, particularly on North Atlantic routes on which it has traditionally held a monopoly. A sustained spike in fuel and consequent overhead prices, the reduced competitiveness of an ageing fleet, along with increased labour costs through a heavily unionised workforce, have all combined to deliver a severe blow to the airlines overall profitability. In recent years, the power of the unionised workforce to hold the airline to ransom was evidenced by the ultimate grounding of the fleet in 2011 by Chief Executive Officer, Alan Joyce, as he locked out the disputing workforce and subjected p...
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O'Sullivan, M. (2012, June 25). Ditching sale act won't end turbulence for vexed Qantas. Sydney Morning Herald. Retrieved from http://www.smh.com.au/business/ditching-sale-act-wont-end-turbulence-for-vexed-qantas-20120624-20wjr.html#ixzz24djAbsU3
Qantas Airways Limited (2013). The Transformation Continues: Qantas Annual Report 2013. Retrieved from http://www.qantas2013.reportonline.com.au/
Qantas Airways Limited (2014). Accelerating Change in the 1990s | Qantas. Retrieved March 22, 2014, from http://www.qantas.com.au/travel/airlines/history-1990/global/en
Qantas Airways Limited SWOT Analysis. (2014). Qantas Airways SWOT Analysis, 1-8.
Singer, M. (2011, October). Airline that stops a nation. Sydney Morning Herald. Retrieved from http://www.smh.com.au/travel/travel-news/airline-that-stops-a-nation-20111029-1mpgc.html
The main factors, which caused Qantas to change was that, the business was under government ownership until 1995, with a classical/scientific management structure. Meaning the business maintained a:
... amid nations (Gerber 2002, p. 29). Although there has been a major decrease of barriers to trade liberalisation concerning flight amenities in the last century, there are imperative uncontrollable external factors a business must assess and weigh before entering international borders and becoming a prosperous globally identified firm (Ramamurti & Sarathy 1997). Qantas, a highly esteemed patriotic and iconic Australian brand has demonstrated accomplishment intercontinentally. The ultimate success of their business, in order to sustain competitiveness in their global market, will rely heavily on their continuous assessment of combined political and legal reforms, economic dynamics, sociocultural influences, technological modifications and environmental concerns and their interlocking marketing strategies to gain the most beneficial opportunities that come their way.
No matter how a business operates, change is inevitable and affects all businesses. CAMERON SMITH investigates the changes Qantas have had to undergo in order to keep up with their competitors, whilst navigating the challenges of low cost of fares.
The industry for Qantas Airways Limited is a company that guides a long distance in airline, which is in international and domestic location. Qantas Airways Limited is a company that established as a world airline that comes from Australia.
Qantas is the oldest airline in the English speaking world. It was founded by the three aviation pioneers Hudson Fysh, Paul McGinness and Fergus McMaster as the Queensland and Northern Territory Aerial Service in 1920 and has grown from one aircraft which offered air taxi services and joyrides to a vast, complex fleet operating all over the world. By 1930 Qantas’ air routes had expanded to reach up to North Eastern Australia and was later purchased in 1947 by the Australian Federal Government.
...onclude, the strategies used by Qantas in dealing with these influences have all been relatively effective. The use of technology has been the most effective in providing the business with a competitive advantage and has very little downsides when compared to other strategies. Operations management has dealt with globalisation effectively and greatly reduced costs and provided the business with a competitive advantage at the expense of the business reputation and individuality. Strategies which involve product differentiation have been used very effectively and are beneficial to Qantas. However the more cost leadership strategies that Qantas uses, the more likely that the business will lose it’s own individuality as the “Red Kangaroo”. In general, Qantas has been able to keep it’s business running relatively successfully and has dealt with it’s influences very well.
In my discussion I will use the Australian airline industry to present how oligopolies operate, and to show the different behaviours and strategies that arise from the interdependence of firms. I will mainly concentrate on the domestic airline market in Australia. The domestic airline market consists of a duopoly of two firms, Qantas and Virgin Blue. Since Qantas and Virgin are the only two Airlines supplying domestically in Australia, they account for all of the profits in the market and consequently they are in direct competition with each other. Because only two firms are competing, each firm must carefully consider how its actions will affect the other, and how its rival is likely to react. Thus, strategic considerations regarding the behaviour of competitors in this duopoly are essential in order for Qantas and Virgin to set prices.
Qantas is one of the reputed and oldest airlines in the world. Qantas was born in Winston, Queensland in the year 1920. The abbreviation is Queensland and Northern Territory Aerial service limited. It is headquartered at Sydney one of the largest building block in Australia, it is worth 50 million Australian Dollars.
British Airways (BA) is the main and largest carrier airline of the United Kingdom. It’s headquarter is located in Waterside. The British Airways Group was established in 1972. It included British Overseas Airways Corporation (BOAC) and British European Airways (BEA). In 1974 British Airways was formed after the dissolution of BOAC and BEA (British Airways, 2015).
Clark, P. (2010, June 8).Europe airlines struggle for take-off as rivals gain speed. Financial Times, p.15.
Tom, Y. (2009). The perennial crisis of the airline industry: Deregulation and innovation. (Order No. 3351230, The Claremont Graduate University). ProQuest Dissertations and Theses, , 662-n/a. Retrieved from http://search.proquest.com/docview/304861508?accountid=8364. (304861508).
Since its first grand opening in 1971, Southwest Airlines has shown steady growth, and now carries more passengers than any other low-cost carrier in the world (Wharton, 2010). To expand the business operations, Southwest Airlines took over AirTran in 2010 as a strategy to gain more market share for the Southeast region and international flights. However, the acquisition of AirTran brought upcoming challenges both internally and externally for Southwest Airlines. In this case analysis, the objectives are to focus on the change process post the merger with AirTran, and to evaluate alternatives to address the impacts of the merger. II.
Several large scale, interrelated conditions have affected the airline industry over the past several years in such a manner that every carrier has had to respond in order to remain viable and competitive.
1. Issues 2. American Airlines’ objectives 3. The airline industry 4. Market 5. Consumer needs 6. Brand image 7. Distribution system 8. Pricing 9. Marketing related strategies 10. Assumptions and risks
British Airways Plc (British Airways or BA) is a full service premium airline with a global route network flying to approximately 400 destinations worldwide. The company provides scheduled air services at both domestic and international level. Its services include flights for passengers and cargo. The company provides air transportation services for over 40 million customers a year and serves 35 million cups of tea, 36.5 million meals and 3.7 million bottles of wine for the passengers. The company operates extensive international scheduled airline route networks in association with its joint business agreement, code share and franchise partners.