...Name Professor Corse Date Qantas and Jetstar Airlines Table of Contents 1.0 Introduction………………………………………………………………………………2 2.0 Strategies that Jetstar Airlines want to Execute……………………………………….....2 2.1 Market Conditions………………………………………………………………........2 2.2 Immediate Priorities…………………………………………………………………..4 2.3 Reshaping and Broadening Jetstar Airlines…………………………………………..3 2.4 Earning and Rewarding Loyalty……………………………………………………...3 3.0 How the Strategic Choices by Qantas Affect Human Resource Planning……………….4 4.0 Change to Workplace Laws……………………………………………………………...4 5.0 Impetus for Modification of Employee Relations……………………………………….5 6.0 Human Resource Planning………………………………………………………………6 7.0 Recommendations for Developing Human Resource Strategies………………………..8 8.0 Conclusion……………………………………………………………………………….8 Works Cited…………………………………………………………………………………9 Strategic Management 1.0 Introduction Strategy formation is critical designing, emergent learning, and intuitive visioning. It is concerned with perpetuation as well as transformation and involves social interaction, personal intuition, cooperative, and conflictive. Strategic management has to feature synthesis before negotiating during the process and after programming. All these things must respond to what may appear to be a demanding environment. Decisions relating to employment relations strategies are often likely to be viewed differently from strategic considerations of various organizations. This work...
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...153 CHAIRMAN’S REPORT CEO’S REPORT FINANCIAL PERFORMANCE BOARD OF DIRECTORS REVIEW OF OPERATIONS CORPORATE GOVERNANCE STATEMENT DIRECTORS’ REPORT FINANCIAL REPORT SUSTAINABILITY REPORT FINANCIAL CALENDAR AND ADDITIONAL INFORMATION Broadening our horizons 002 QANTAS ANNUAL REPORT 2012 Broadening our horizons Building on unique Australian qualities – and the skills of its 33,600 people – the Qantas Group is broadening its horizons to secure a successful and profitable future. 003 004 QANTAS ANNUAL REPORT 2012 Heading For the Qantas Group, 2011/2012 was a year of transformation. We recorded an Underlying Profit Before Tax* despite significant challenges. We continued to build Qantas’ strong domestic network, Jetstar and Qantas Frequent Flyer. And we launched a five-year plan to turn around Qantas’ international network. FOR THE YEAR ENDED 30 JUNE 2012 *For explanations of non-statutory measures see the Review of Operations. 005 Building a stronger Qantas for our people, our customers, our shareholders and Australia The Qantas Group has a broad portfolio and a clearly defined strategy, with the following core goals: — Build on the Group’s strong domestic businesses through a clear focus on the customer. — Turn around Qantas International through the “four pillars” of targeting global gateways, growing with Asia, improving the customer experience and ensuring disciplined financial management. — Strengthen Jetstar’s rapid presence across Asia...
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...Title Jetstar Asia Airways 1. Introduction This report will be analyzing Jetstar Asia Airways Pte Ltd. The report consists of the PESTEL model and Porter's 5 Forces model for an in-depth analysis of Jetstar Asia Airways Pte Ltd. In the report, there will recommendations on diversifications strategies for the company and a conclusion summarizing up the report. Jetstar Asia Airways Pte Ltd is based in Singapore. It is owned by Westbrook Investments and Qantas Group Holdings (Jetstar, 2014). Jetstar Asia Airways first flight was to Hong Kong on 13 December 2004 (Jetstar, 2014) and main objective of the company is to be the top in providing flights with low prices to consumers within South East Asia. Jetstar Asia Airways owns eighteen jets and provide daily frequent trips to 23 countries such as Bangkok, Thailand. They are the largest low cost carrier in the Asia Pacific by revenue (Jetstar, 2014). 2. Discussion 2.1 General Environment Analysis 2.1.1 Political Factor Political factors are decisions and policies the government implement, which would have a major influence over companies (Gomez-Mejia, L., & Balkin, D. , 2012). For example, the government in Singapore, Ministry of Manpower, exercise some degree of control and influence over the hiring and firing of employees. Singapore Changi Airport charges landing charges for $1,200 per landing. There is also parking charges for aircraft with is charged from range of $49-97 depending on the span of aircraft...
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... more often. The Jetstar Group is a value based, low fares network of airlines operating in the leisure and value based markets. The Group consists of: • Jetstar Airways in Australia and New Zealand (wholly owned by the Qantas Group) • Jetstar Asia based in Singapore. The company is managed by Newstar Holdings, majority owned by Singapore company Westbrook Investments (51 per cent), with the Qantas Group holding the remaining 49 per cent of shares • Jetstar Pacific based in Vietnam (27 per cent held by Qantas with other shareholders including its largest shareholder, State Capital Investment Corporation) The Jetstar Group is the largest low cost carrier in the Asia Pacific by revenue and has flown over 75 million passengers since it launched in 2004. In the past financial year ended June 2011, the Jetstar Group carried almost 20 million customers. The Jetstar Group has grown from 400 employees in 2004 to more than 7,000 staff across the Asia Pacific today. Collectively the Jetstar Group offers up to 3,000 flights a week to 56 destinations in 17 countries and territories across the Asia Pacific region with a fleet of 79 aircraft. Jetstar Group CEO is Bruce Buchanan who is a founding executive of Jetstar. CEOs of the Jetstar network of airlines include David Hall (Jetstar Australia and New Zealand), Chong Phit Lian (Jetstar Asia) and Le Song Lai (Jetstar Pacific). About Jetstar in Australia Jetstar’s headquarters are in Melbourne, Australia. Jetstar forms an integral part...
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...Building a stronger Qantas Annual Report 2011 4 6 8 10 14 16 22 31 49 110 120 Chairman’s Report CEO’s Report Financial Performance Board of Directors Information on Qantas Review of Operations Corporate Governance Statement Directors’ Report Financial Report Sustainability Report Financial Calendar A STRONG PERFORMANCE IN CHALLENGING CONDITIONS THE QANTAS GROUP IN 2011 In 2010/2011 the Qantas Group reported a strong result in a complex and challenging global operating environment, with increased revenue across all business segments. The result was achieved while overcoming a series of natural disasters and operational disruptions, and despite the underperformance of Qantas’ international business. THE AVIATION INDUSTRY IS CHANGING THE QANTAS GROUP IN 2011 The Qantas Group faces a unique range of challenges and opportunities. We are in a strong position to address the challenges and realise the opportunities – but we must take decisive action, as we have throughout our history. SAFETY IS ALWAYS THE QANTAS GROUP’S FIRST PRIORITY WE INVEST $1.5 BILLION IN AIRCRAFT MAINTENANCE EACH YEAR SAFETY FIRST From our response to the QF32 incident to the risks posed by volcanic ash disruptions, we never compromise on the highest standards of safety. A safety-first culture across the Group ensures that risks are identified and addressed swiftly and decisively. We invest hundreds of millions of dollars in training to ensure that when incidents do occur our people react...
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...strategic analysis report relating to Jetstar Airlines o A competitive analysis of the market/s including: A brief description of the history of the company and a history of the main competitors. Include joint venture alliances where applicable. History of the company Jetstar’s mission is to offer all day, every day low fares to enable more people to fly to more places, more often. The Jetstar Group is a value based, low fares network of airlines operating in the leisure and value based markets. The Group consists of: Jetstar Airways in Australia and New Zealand (wholly owned by the Qantas Group). Jetstar Asia based in Singapore. The company is managed by Newstar Holdings, majority owned by Singapore company Westbrook Investments (51 per cent), with the Qantas Group holding the remaining 49 per cent. Jetstar Pacific based in Vietnam (majority owned by Vietnam Airlines with the Qantas Group holding 30 per cent). Jetstar Japan, a partnership between the Qantas Group Japan Airlines, Mitsubishi Corporation and Century Tokyo Leasing Corporation. Jetstar Hong Kong, a partnership between China Eastern Airlines and the Qantas Group (subject to regulatory approval). The Jetstar Group is the largest low cost carrier in the Asia Pacific by revenue and has flown over 100 million passengers since it launched in 2004. In the past financial year ended June 2012, the Jetstar Group carried more than 20 million customers. The Jetstar Group has grown from providing employment...
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...organisation is Jet Star? Jetstar is a value based carrier network providing all day every day low fares with an open approach to air travel serving in excess of 50 markets across the Asia and Asia Pacific region. We believe in fostering a culture that is focused on our customers - ensuring we deliver the lowest fares and provide a travel experience that is refreshing and enjoyable, alongside our commitment to all day every day low fares both to our passengers and our staff. The Jetstar Group includes wholly owned Qantas subsidiaries operating from Australia and New Zealand, Express Ground Handling and partner carriers including Jetstar Asia and Valuair in Singapore and Jetstar Pacific in Vietnam. Jetstar is Australia's low fares carrier and fare leader now operating to 19 Australian domestic destinations and an existing 11 short and long haul overseas destinations. Jetstar Group airlines employ directly 7,000 staff across the Asia Pacific region. Mission Statement Jetstar's mission is to enable more people to fly more often and also to extend air travel to those who have previously never been able to afford to fly by offering customers low fares, all day, every day. About Jetstar / Valuair in Singapore Jetstar Asia and Valuair are part of the Jetstar Group's value based network which aims to provide all day every day low fares to South East Asia's most popular leisure destinations. The creation of the airline came six months after Jetstar first commenced its domestic...
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...QANTAS, JETSTAR AND VIRGIN AUSTRALIA A TALE OF CHANGING STRATEGIES Topic code and name | BUSN 3055 | Word count | 2020 | 1. Differentiated pricing is among the widely practiced Revenue Management tactics in which a firm offers its products/services at differentiated prices to distinct markets. And this tactic has been noticed by airline industry for more than four decades. Revenue Management also known as Yield Management has been well recognized as an essential practice in many businesses, and it is defined as the set of strategies adopted by a business to improve its profitability (Philips, 2005). It is among the most important applications of management science and operation research (Bell, 1998). Qantas, Australia’s foremost domestic and international carrier, established Jetstar in May 2004 as a budget airline. Its purpose is to cover the low-cost segment of the market, which began in around the year 2000 with the launch of a competitor, Virgin Blue. Until the time Jetstar began operations, Virgin Blue had been successfully eroding Qantas’s air market share, indeed with the collapsing of Ansett Airlines (Easdown, 2002), and capture around one-third of domestic airline market. In response, Jetstar was also designed to be a no-frills carrier, predominantly targeted at the leisure market. (Case Study) Market segmentation is a strategy that involved dividing the target market into subsets of consumers who have common needs and priorities. As in airline industry...
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...Qantas Airways STRATEGIC DIRECTION * Qantas Airways Limited may have won the capacity war between itself and Virgin Australia, but the cost has been considerable. The company now needs to consider drastic measures that were previously out of the question, such as selling low cost carrier Jetstar or its highly profitable loyalty programme. Much of Qantas Airways Limited’s future, however, is in the hands of the Australian Parliament, and whether or not it dismantles the 1992 Qantas Sales Act to allow majority foreign ownership. KEY FACTS Summary 1 Qantas Airways Limited : Key Facts Full name of company: | Qantas Airways Limited | | | Address: | 10 Bourke Road, Mascot, New South Wales 2020, Australia | Tel: | +61 (02) 9691 3636 | Fax: | +61 (02) 9490 1888 | www: | www.qantas.com | Activities: | Operator of a scheduled airline, a low cost carrier, air freight carriers and a loyalty programme | Source: Euromonitor International from Australian Stock Exchange, Qantas Annual Report Summary 2 Qantas Airways Limited: Operational Indicators | 2011 | 2012 | 2013 | | | | | Net sales | A$14,894 million | A$15,724 million | A$15,902 million | Net profit | A$552 million | A$95 million | A$192 million | Number of employees | 32,490 | 33,600 | 33,265 | Source: Euromonitor International from Qantas Annual Report COMPANY BACKGROUND * Qantas is publically traded on the Australian Stock Exchange, but with limitations that were imposed on the...
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...marketing strategy used by Jetstar Asia Business model of Jetstar Asia Upon its official launch in December 2004, Jetstar Asia launched an all-out aggressive expansion plan to operate numerous flights connecting Singapore to the major cities of the South-East Asia region like Jakarta, Pattaya, Surabaya, Shanghai, Taipei, Hong Kong, Manila and a few other cities in India. Jetstar’s targeted market would be a 'combination of business and leisure travellers' according to the company. Jetstar believed that their success would wholly be dependent on its ability to cultivate the targeted market and also have the advantage of serving highly populated major areas and cities by being the first Low-Cost Carrier (LCC) to do so by the addition of new routes to the destinations that are frequented by its targeted market. Unlike any conventional LCC which aims to only make air travel more accessible and more affordable to their target market by taking away all of the frills & entertainment on board to cut cost. Jetstar Asia employs a modified Low-Cost Carrier model which not only offered low fares by cutting away as much frills & entertainment costs as possible. While the same time offering some services and comfort typical of Full-Service Carriers (FSC) such a ‘Business class’ on-board its long-haul flights which offers meals and beverages, in-flight entertainment and seats covered in premium leather. Therefore it can be seen from their operations, Jetstar Asia did not position itself...
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...BLUE SKY MAN Industry Segmentation In the airline industry, market segmentation can be based on providing flights to domestic or international destinations and product segmentation would include the different types of fares they are offered, such as economy, business and also first class. dustry will be low as there are high barriers to entry. Due to high cost of planes, entering airline industry requires high capital investment to commence operations. The airline industry is extremely capital intensive, due to the cost of buying and leasing aircrafts, safety and security measures, customer service and creating a brand people can trust. In order to achieve economic of scales, many airlines creates alliance with each other therefore creating efficiency in joint purchase of aircraft, cost of maintenance and parts thus save hundreds of millions of dollars such as the Jetstar/AirAsia alliance. This creates further barriers whereby new entrants will not be able to compete in term of cost and price. (1) Power of suppliers to the industry - Medium to High The airline supply business is mainly dominated by Boeing and Airbus therefore they have high supplier power. For this reason, there is not a lot of competition among suppliers. Also, it is also unlikely that of a supplier integrating vertically. Airlines are also unable to materially affect fuel prices from suppliers as the oil market dictates the fuel costs. They also aim to use their combined scale to help...
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...February 2010 Jetstar Customer Guarantee As part of our low fares, good times promise, Jetstar is committed to providing you with the best flight experience for the best price. You also have our absolute commitment that your safety is our highest priority. We strive to make every part of your experience with us as straight-forward and as pleasant and enjoyable as possible. That’s why we have over 7,000 people doing their very best, all day, every day to get you to where you want to go. Unfortunately, there are times for every airline when things don’t go to plan, often because we have your safety as our highest priority. If you are inconvenienced as a result, we think it’s important to know what you can expect from us, and that you know we will always be helpful, fair, open and consistent. That’s why we’ve created our 10 point Jetstar Customer Guarantee, so that in the unlikely event something does affect your journey with us, you know exactly what to expect. 1. 2. 3. 4. Your safety is our highest priority We commit to provide the lowest fares with our ‘Price Beat Guarantee’ Our team are always here to help, 24 hours a day, 7 days a week We’ll let you know your choices if your flight is changed before you travel 5. We’ll keep you updated and provide options if things don’t go to plan on the day 6. You will get what you paid for 7. You can have confidence in how quickly we will respond to an issue 8. You can have confidence in how quickly we will refund your money 9. We share...
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...Qantas, known as Queensland and Northern Territory Aerial Services, is the flag carrier airline of Australia. Its main hub is based in Sydney Airport, also known as Kingsford-Smith Airport. In the last decade, Qantas had faced many strategic challenges such as increasing competitions in both domestic and international markets, industrial disputes and the struggle to maintain profits during the global economic crisis. This essay would highlight the biography of Qantas's current status and evaluate the effectiveness of the solutions used to solve the challenges. Currently, Qantas operates in Australia and the Asia Pacific region and is part of the Oneworld alliance. It is able to fly across to 200 destinations in more than 45 countries. This also includes Qantas’ own regional carrier QantasLink and low-fare carrier Jetstar. Moreover, its vision is to be the leader in providing premium and low cost service through Qantas and Jetstar brands respectively (Qantas, 2014). In addition, Qantas has a flexible fleet plan, owning 128 aircrafts that includes 20 Airbus 330, 12 Airbus 380, 66 Boeing 737, 15 Boeing 747 and 15 Boeing 767. It has 33.36K employees and 93% are based in Australia (Qantas, 2014). It also owns a 29% stake in Jetset Travelworld, an Australian travel agency (Benns, 2009). Furthermore, cargo, catering and tourism operations also provide revenue that will sum up Qantas’ total revenue to more than A$15.9 billion (Macroaxis, 2014). The carrier's great strength...
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...exploded in 2008. The world economic recovery is still facing uncertainties. Negative Medium Market Declining trend in terms of older-style, full-service airline demands. Customers are more price-sensitive. Negative Medium The Asian market is really growing compared with the stagnant markets in North America and Europe. Positive Medium Politics Asia is not at a stage in terms of a common single market and is subject to different restrictions in different countries. Negative Low / Medium Law Very complex in terms of cross-border ownership laws. Negative Low / Medium Society An ongoing trend for greater environmental concerns. Especially people with a high awareness for global warming try to travel environmental friendly and are looking for suitable travelling substitutes. An increase in services to leisure destination lifestyle of the new generation. In today’s fast-paced global business environment, timetables took precedence over service and for a discerning business traveler, scheduling is critical. Negative Medium Overall Negative Low to Medium 2. Porter’s 5 Forces Model Overall: Low to medium Potential New Entrants — Low Potential threat from new entrants are: a. Foreign Carriers enter into Australian Market b. Regional Carrier Start Up. E.g. Virgin Blue There are very few barriers to entry to the airline industry, but those that exist are particularly high: There are high financial...
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...worker: -Does not need to face customers (i) People handling booking system (ii) People handling luggages (Transfer or luggage to plane etc) 2. Flexible work and the flexible firm – does Jetstar need more “flexibility” than other airlines? Does it need more flexibility than companies in other industries? Why? Answer: Must write yes and no. Yes, it has more flexibility because it is budget. (Compared to non-budget airlines) For example, there are 10 000 passengers on board but only 50% of the food are prepared. So if there are not enough food, crew cannot prepare and cook in the plane. To show flexibility, they can make the food portion smaller and sell it at cheaper price. Numerical flexibility example: If there is not enough passengers for a flight to operate, they can delay the flight and combine the passengers from the other flight so that they will not suffer a loss. Manufacturing industry does not have much flexibility: Quite standard (mechanisms, robotics). Service industry, flexibility is very important - Hospitality. Airline needs lots of flexibility based on higher low season - numerical flexibility. E.g. Having stand-by workers for short or long period. 3. Flexible work and the flexible firm – does Jetstar need more “flexibility” than other airlines? Does it need more flexibility than companies in other industries? Why? Answer:...
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