Analysis of the Internal Environment at Qantas Airways Limited

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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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...national/august-2012/Pages/ceo-interview-qantas.aspx
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

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