SWOT Analysis
Strength
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Improving Margins: As economic showing a significant progress, Qantas margins are also improving.
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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.
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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
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Entering New Markets of low‐budget airlines with potential huge customer.
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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
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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,
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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.
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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
Qantas is having a strong competition with other airlines especially Virgin which is also one of the airlines of Australia. They were having a dispute over some petty matters but now they have resolved their arguments. The government now is also offering their support to Qantas so that it can improve its profitability.
Qantas capitalized on by increasing its domestic share of the market from 55% to approximately 80%. Qantas management had effectively filled the gap left by Ansett by moving planes from the depressed international routes to the company’s expanded domestic market and by leasing planes from overseas to expand its aircraft fleet by
Qantas is Australia’s largest domestic and international airline. Although Qantas is primarily a passenger airline, air freight is also an integral part of its core business. Other Qantas operations include catering, tourism and E-commerce devoted to transport and travel. In order to have an effective business and operations process, a company, like Qantas must be aware of the influences that can affect it. By being aware of the influences it enables the business to make decision and choices that can get the most out of each influence, by doing this it can assist the business in its endeavours for success.
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.
1) Qantas Airways Limited is the national airline of Australia, it is also the largest airline in Australia. The Qantas Group’s principal business is providing domestic and international air transport services for passengers. Additionally, Qantas owns several subsidiary companies such as Jetstar and QantasLink that also operates flights to domestic and international locations, and Q Catering, a premium full service flight caterer.
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
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
The assignment assesses the trajectory of the Qantas airline that witnesses heavy financial losses due to a grave situation. In August 2011, Qantas witnessed a disputed terrain that culminated in international division. The experts believe that Qantas domestic, Qantas Link and other variants of Qantas gave an excellent performance in the recent phase. However, Qantas International faced escalating losses that amounted to $200 million. The Qantas airline faced severe industrial crises in the recent time. At the other end of the spectrum, the unions could not accept the reforms that the Qantas airline began to deliberate (Adler and Mantin 2015). The unions maintained that the Qantas airline is gradually drifting the international operation in a different location. The management made such arrangement to identify cheap labour and other resources. At the same time, the unions comprehended the graveness of the situation. They claim that the airline transgressed the deliberation of the 1992 Qantas Sales Act, which specifies that the carrier’s base should remain within Australia. The Qantas refutes to provide improved work and payment balance (Ancell 2016). The organizations like Australian and International Pilots Association (AIPA) attempted to adopt industrial action against the particular airline. The conflict assumed a rigorous character, centring the issue.
At the moment Australian passenger airline industry is dominated by thee large domestic carriers: Quantas, Jetstar and Virgin Blue.
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.
Qantas has become Australia's largest domestic and international airline, it was registered initially as the Queensland and Northern Territory Aerial Services Limited (QANTAS) which broadly viewed as the nation's top leading long distance airline and is top airline brands in Australia. Qantas have built a good reputation in safety, operational reliability, building and support, and customer services. Qantas is at the forefront of the universal civil aviation industry, will be continuing providing outstanding service to their customers. Qantas first priority is safety and forms the foundation of every single sound decisions and activities inside the company.
Qantas Airways Limited is the largest and oldest Australian airline group, founded in 1920, to provide the operations of customer and freight travel services, throughout both the international and domestic aviation transportation markets (Qantas Airways Limited, 2017). Qantas is the third oldest airline in the world, after KLM and Avianca, and known greater widely, as the leading long distance airline in the world. One of Australia’s most iconic brand names, Qantas, accounts for occupying a substantial market share in the air travel industry, in which 2015 averaged 28% for Qantas international markets, and July 2016 accounted for 39% annual share of capacity in the Australian domestic market (anna.aero, 2016 ). The Qantas group
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,
There has been a positive growth in world airline traffic up to the global economic crisis of 2008 and THY moreover has maintained to outpaced growth in
Launched just 8 years ago, today, the Jetstar Group consists of a network of value-based air carriers that deliver high quality air passenger services for budget-minded travelers across Australia, New Zealand and the Asia Pacific region. Beginning with just 400 employees, the company currently employs more than 7,000 people and carries about 20 million passengers a year. To gain some insights into how the Jetstar Group achieved this impressive growth in such a short amount of time, this paper provides a review of the relevant literature concerning the air passenger industry in general and the business strategy used by the Jetstar Group in particular. A summary of the research and recommendations for this company are provided in the paper's conclusion.