Qantas Airways Ltd is Australia's national carrier and a dominant player on the Australian market and specifically ranks ninth in global (Air transportation, 2013). Qantas has an integrated global marketing strategy based on a consistent brand positioning across all markets with excellent brand image in safety record and reputation in the industry as the provider of on-time quality air travelling services to its passengers (Qantas On-Time Performance, 2014). However, the airline has experienced a tough business environment due to interaction between external and internal environment forces that lead to number of strategic issues, therefore the purpose of the report was to critically analyse the key strategy issues through strategic analysis tool like SWOT and PESTLE.
Contents About the Qantas and Expedia SWOT Analysis of Qantas PEST analysis of Australia Other travel Agencies selling the Fares for Qantas Reviews about Qantas and Expedia Market segment of the Airline Rate Structure of the Airlines Pricing Strategies Positioning of the Airline Mean Absolute Deviation Graphic Representation of Data Recommendation for Increasing the Revenue References Appendix ABOUT THE QANTAS AIRLINE Qantas is the largest domestic and international airline of Australia. It was registered originally as Queensland and Northern Territory Aerial Services Limited (QANTAS). It is one of the strongest brands of Australia and world’s leading longest distance airline. The main business of Qantas group is transportation of customer using two complimentary brands QANTAS and JET STAR. Qantas is also the part of one world alliance.
Rivalry: The competition between Air Canada, a traditional carrier, and West Jet, low cost carrier is rigorous in Canadian airline industry. Though Air Canada is Canada’s domestic and international airline and has dominant hold in the Canadian market, West jet is giving the airline tough competition with its effective price point, profitable routes with greater focus on domestic market. The rivalry competition is moderate to
Qantas Airways (integration between Jetstar and Qantas), is the flag carrier of Australia, which well-known as the famous low cost airline with the strongest band and one of three oldest airlines in the world. Its nickname is “the flying kangaroo”. From the beginning that the company uses the biplane that can serve only one or two passengers, but now the airline can support the demand of the passenger by using bigger plane such as AIRBUS A380 that can carry the passenger around 450 per flight. The successful of Qantas airline are not only the machine but it comes from the manpower that attempt to institute the Queensland and Northern Territory Aerial Services Ltd (QANTAS) from the past the airline flight with the big problem is war by have
2).However all these faltered when Qantas’ past marketing manager took over during 2011. The airline is financially weak and its share price has slumped. Virgin Australia Airlines has a strong market value and image owing to its innovative ideas and creative thinking. It operates a rapidly growing fleet basically comprising of Jets and Airbuses. The low average fleet age helps the company to reduce maintenance cost of the aircrafts.
GLOBAL AIRLINE ALLIANCES (GALs) ANALYSIS AND AIRLINES NETWORK DEVOLOPMENT ABSTRACT Since the mid of 1990s, worldwide airlines have been enrolling in one of the three current and largest global airline alliances (GALs), STAR ALLIANCE is the very first airline alliance founded in 1997, then it was followed by ONEWORLD alliance in 1999, and SKYTEAM in the year 2000, during the expansion of these GALs, airlines from different contents started belonging in to join, GALs provided transportation for over two-thirds of all international traffic. This research studies the reasons that cause airlines to join collaborative scheme as a way for network development and to increase profitability by connecting the international traffic. The evolution of
Most of JetBlue’s primary competitors including Southwest Airlines and Delta Airlines are larger and have financially very strong and established brand name. Many of the competitors enhanced their services and dropped prices to give tough competition. In addition, there has been a lot of merger and acquisition activity within the industry which caused fares to reduce further putting pressure on revenues and earnings of JetBlue. Geographic Risk: JetBlue when expanding into Latin America is also subjected to high risk. These countries are emerging markets, and face risks due to political and economic instability, underdeveloped legal systems, strike from third party service providers etc.
Delta has highest ACSI score of 71 among the legacy carriers and is recognised as the "most admirable airline" by Business Travel News and "Airline of the Year" by Air Transports World. Delta Express offers competitive salary package to motivate loyalty among its employees. Some of the Delta departures in Orlando airport mainly from Delta Express which covers the whole wing in the airport terminal. Delta Airlines focusses on employee development and innovation, to ensure management act accordingly. The company also operates point-to-point service that is not part of the mainline network.
STRATEGIC MANAGEMENT Assignment # 1 Answer 1: Based on my research, I have selected 2 airlines - Spirit Airlines (utilizes Low cost provider strategy) and Singapore Airlines (Utilizes Differentiation Strategy). I have highlighted the differences below: Spirit Airlines Singapore Airlines 1. Recruitment and Selection a) Low cost recruitment with less focus on experience b) Main source is campus recruitment & LinkedIn c) Focus on mass recruitment with more emphasis on quantity Clausen, S. (2016, February 17). Recruiting & retaining FP&A talent in a low-cost environment (Video file). Retrieved from https://channels.theinnovationenterprise.com/presentations/recruiting-and-retaining-fp-a-talent-in-a-low-cost-environment 1.
Global Airline Strategic Alliances are “long term partnership[s] of two or more firms who attempt to enhance competitive advantages collectively vis-à-vis their competitors, by sharing scarce resources including brand assets and market access capability, enhancing service quality, and thereby, improving profitability” (Oum, Park and Zhang, 2000, p. 5). According to the 2007 Airline Alliance Business Survey (AABS) (the latest available data) there are some 120 main passenger airlines co-operating in close to 500 alliances worldwide (Flight Global, 2014). These alliances include Star Alliance (including major players, such as Swiss Airlines, All Nippon Airways and Lufthansa), Sky Team and One World Alliance. The level of co-operation recorded