...INTRODUCTION Qantas is the acronym of the Queensland and Northern Territory Air Services. Qantas is the world's second oldest airline and was founded in the Queensland outback in 1920. It is Australia’s largest domestic and international airline and is recognised as one of the world's leading long distance carriers. It has pioneered services from Australia to North America and Europe. The Qantas Group today employs approximately 32,500 people and offers services across a network spanning 182 destinations in 44 countries (including those covered by codeshare partners) in Australia, Asia and the Pacific, the Americas, Europe, the Middle East and Africa. [16] The Qantas Group’s main business lies in the transportation of passengers via two complementary airline brands – Qantas and Jetstar. The Sub-divisions of the brands are shown in the figure below: In addition to the airline brands, the Qantas Group operates Qantas Frequent Flyer and Qantas Freight. The Group has additional equity interests in airline and airline-related businesses. Qantas is also a partner with Australia Post in two jointly controlled entities: Australian air Express and Star Track Express, a national road freight business. [12] The Qantas Group’s long term vision is ‘to operate the world’s best premium airline, Qantas, and the world’s best low fares carrier, Jetstar.’ [13] To achieve this, the Group is focused on five key elements: * Safety is our first priority * Right aircraft, right...
Words: 4229 - Pages: 17
...Strategic Management on Qantas Airway Qantas Airway Strategic Management BUSM 3125 Group Assignment 2 Jonathon Reid Sindra Hao Ming Lee – S3301727 Table of Content Executive Summary 3 Background Information 4 SWOT Analysis 5 PESTEL Framework Analysis 6 Porter’s Five Forces Analysis 9 Qantas’ Strategic Capabilities 12 VRIN Model 14 Qantas’ Value Chain 16 Qantas’ Generic Strategies 17 Conclusion 19 Reference List 20 Executive Summary This report is going to provide a fundamental analysis inboth external and internal factors that influence Qantas Airway in competing in the aviation industry. The PESTEL framework is applied to identify how issues in the political, economic, social,technological, environmental and legal environment may affect the industry within which Qantas operates. Moreover, Porter’s five forces model also helps identify the attractiveness of the airline and aviation industry related to five competitive forces: the threat of entry, the threat of substitutes, the power of buyers, the power of suppliers and the intensity of rivalry among competitors in the existing industry (Johnson, Whittington & Scholes 2011). The external analysis is essential to determine Qantas’ opportunities and threats. Whereas the internal analysis includes understanding Qantas’ resources and competences that are likely to provide sustainable competitive advantage, identifying Qantas’ competitive position using VRIN model (value, rarity, inimitability and non-substitutability)...
Words: 3104 - Pages: 13
...Title: Qantas and Emirates Alliance Strategy Course Name: Strategy Development and Initiatives Course Code: MGMT20112 Course Coordinator: Daniel Abell Lecture Name: Daniel Abell Tutor: Daniel Abell Students: Ruth Calasan s0235265 Tracy Nguyen s222275 Felipe Gutierrez s0234289 Due Date: 19/08/2013 Date Submitted: 26/08/2013 Word Count: 3500 Words Executive Summary Last 06 September 2012, Qantas had entered a 10-year partnership with Emirates that will go beyond the code-sharing and collaboration in terms of coordinated pricing, sales, and scheduling and benefit-sharing model which aims to jointly deploy one or more resource combinations. An in-depth analysis has been done on what are the internal and external factors that influence Qantas to form an alliance with Emirates. These factors are: Deregulation of open skies creating economic environment and open equal opportunities for all air carriers Excessive capacity, fuel cost, foreign currency exposure and threat of new entrants. Changes in customer taste and destinations, power of customers and growth of airlines alliances. Heavy investments in railways and telecommunication tools Consumer protection and passenger rights Growing percentage of global emission Airport slots allocations Similarity of resources and services such as Singapore Airlines and Cathay Pacific Improving services for better price Improving power of negotiation between the alliance and suppliers During the analysis...
Words: 7700 - Pages: 31
...Strategic Management Name Course Tutor Date Executive Summary These have been unstable times for the Australian airline industry. It has been faced with a marked decline in global tourism after the September 2001 terrorist attacks in the United States. Recently, there has been traffic loss which is attributed to the war in Iraq and severs acute respiratory syndrome (SARS) occurrences in parts of Canada and Asia. In addition, to this mayhem the industry has gone through main structural changes since 1990s. There were four airlines on the essential routes but currently they are two. In 2000, the local trunk routes were controlled by Ansett Australia and Qantas Airways with new competitors Impulse Airlines and Virgin Blue rising in niche market. Currently the industry has irregular two airline structures, with Qantas leading since its occupation of Impulse Airlines in 2001 and the Ansett group’s following collapse in September 2001. On the contrary, Virgin Blue is not a member of an association, its service frequencies are reserved in comparison with those of Qantas, and its local network is not as extensive as that of Qantas is dynamic. In reaction to Virgin blue success, Qantas is taking steps to expand its allocation of the budget travel market, while Virgin is now in quest of expansion past its vacation traveller position by developing its business travel market. The government is showing a liking for administrative way outs such as a certain number of local airline...
Words: 3528 - Pages: 15
...analysis and design and the organisation reflected in this paper is Qantas engineering (QE) which resides under the Qantas Airways Ltd Group. Qantas has recently undergone a huge transformation with the reduction of 5000 jobs. Competition paves the way to downsizing and reorganisation changes which meant that QE was going to reduce its workforce from 500 to 180 engineers. The main cause for this reduction in engineering was benchmarking the QE organisation with engineering organisations of other major competitor airlines such as Emirates airlines, Singapore airlines and British airways, retirement of ageing aircraft, reliability and on-wing performance of newer engines / airframes due to improvement in materials and computers/ programs that simplified administrative tasks. The most significant reason was that Qantas was losing its domestic market share to Virgin Australia and this meant that Qantas had to lower its cost base in order to compete. This reduction in workforce meant that existing engineers had to be flexible & adaptable to learn and pickup engineering functions that redundant staff had been doing all these years. There was clearly a failure to analyse jobs before the transformation and redesign work in line with the new company strategic plan. Table of contents Introduction 6 Background 6 External factors 7 Transformation 7 Recommendations 9 1. Organisational management and planning 9 2. Communication 10 3. Technology 11 Conclusion...
Words: 2482 - Pages: 10
...Question?? Accounting for decision making of Virgin Australia Holdings and Quantas Airways ltd. Report Review analysis the Topic Frame is: Introduction The presented report is aimed to present understanding and interpretation of different financial ratios in the context of judging the financial performance of an organization. The financial ratio revealed on the basis of different financial records and figures for a particular organization, indicates the existing status of the company. In addition to this, there are a number of different types of financial ratios for a company which are aimed to show different aspects of financial performance of the organization namely profitability, Efficiency, and financial stability of the organization for a long term. From the perspective of an investor or a share holder, it is quite crucial to have proper information regarding existing financial ratio of the company before making worthy investment within an organization (Gitman, and McDaniel 2008). In context to this, the paper shade some intensive lights over thorough interpretation of different ratios of two prominent airlines companies namely Virgin Australia Holdings Ltd, QANTAS Airways Ltd. The primary objective of the paper is to reflect financial performance of both the organizations for last two financial years (i.e. 2010 and 2011) on the basis of the interpretation and review of financial ratio of both the organizations. Analysis of financial performance...
Words: 3139 - Pages: 13
...EXECUTIVE SUMMARY This report aims to determine whether Qantas is suitable to be included in a diversified share portfolio aiming to maximise investor returns over the long term. Analysis began with a broad view of the airline industry, both international and domestic. Porter’s Five Forces framework is utilised to determine the strengths of buyers, sellers, potential entrants, competitors and substitutes. Overall the airline industry is characterised by high barriers to entry however these barriers are reducing and competition is increasing, particularly in the low-cost segment. Qantas was then examined utilising SWOT analysis to highlight the strengths, weaknesses, opportunities and threats particular to the airline. Qantas has a strong competitive position with a recognisable brand and loyal customer base through the use of the Frequent Flyer program. However, expansion into the Japanese domestic market could jeopardise future profitability. Other threats could arise from further technology failures, natural disasters and labour disputes. Accounting analysis of Qantas focused on the treatment of the Frequent Flyer program, hedging accounting and the adjustment of estimates relating to aircraft. It appears that management has applied prudent estimates which accurately reflect the financial position whilst allowing some flexibility. Discounted cash flow analysis was utilised to determine intrinsic equity and firm value. Key assumptions included the cost of equity, market...
Words: 3596 - Pages: 15
...Airlines has not made a loss in the past eighteen years despite the airline market being turbulent due to the high fuel costs. This has been due to the airlines long term strategies. The airline recently signed a deal with the Australian carrier Qantas Airways in a bid to expand its routes to Australia. The controlling role employed by Emirates was to expand and tap Australian market thereby expanding its routes. High level management was involved as the deal involved signing a ten year contract with Qantas Airways. The contract situation was a non-cybernetic control. Etihad Airways signed a billion dollar deal with Sabre for the Sabre software solution. This was in an attempt to migrate all its business operations to the Sabre software platform. The role of this control was to simplify management process, auditing and analyzing of important aspects of the airline operations with the aim of minimizing operational costs. The control was top management oriented as it is the airline’s biggest technology investment. The decision to migrate the entire business operations to the Sabre Software is a cybernetic decision. Comparing the given case of Northrop Grumman and Etihad Airways it is clear that both companies are focused easing management by employing solutions and contracts that will make operations of the companies easier and smooth. Etihad aims at reducing costs and meeting the customers need by acquiring the Sabre software, where as Northrop on employee perfomance. The two...
Words: 352 - Pages: 2
...Strategic Management Group Project Virgin Atlantic Airways Limited Instructor: Mr. Audun Fiskerud Presented by: Mikael Tving Therkildsen - Jacob Brodersen – Jonas Ravn Nielsen - Gary Chuyu Fang Executive summary This report strategically analyses the Strategy Business Unit (SBU), passenger transfer service, for Virgin Atlantic Airways Limited. The strategic analysis contains investigation of certain key business areas of Virgin Atlantic, such as: defining whom the Virgin Atlantic customer is; understanding of the external environment issues of the airline industry; competitor analysis, and analysis of the Human Resources within the organization. Through the analysis of Virgin Atlantic Airways Limited, some issues for the company were uncovered. Especially two main issues should be considered as potential problems for Virgin Atlantic’s business unit and so action needs to be taken within these areas: 1. Lacking economy of scale (size of the company). 2. Increasing environmental awareness among customers. 1. Virgin Atlantic lacks economy of scale because of the size of the company and limited routes available. To be able to compete effectively and gain greater profits through economy of scale, Virgin Atlantic has to expand by opening new routes. The implementation of this will require strategic financial planning and adjustment of the company structure. It is likely that this process will take several years; however, this change is necessary to increase Virgin...
Words: 8756 - Pages: 36
...Introduction QANTAS is operating mainly domestically and internationally in air transportation company for various types of travelling, such as leisure and business, cargo and logistics facilities as well as support operations which includes: information technology, catering, ground handling, engineering and maintenance (Qantas Annual Report, 2013). Qantas Group also has dual brand strategy. It operates under Jetstar Airline, as a subsidiary. Jetstar is operating under a low-cost business model and it competes with local market airlines, such as Virgin Australia and Tiger. As for the Qantas airlines, it is positioned as a premium full-service carrier, providing hi-end experience for business class and corporate customers. They all have a major influence on the business, its strategy and therefore its performance. This business strategy gives Qantas Group its quite unique and competitive advantage situation of having two well known companies in the superior and low fares segments at the Domestic and International markets (Qantas Annual Report, 2013). The demographics of Australia is taking optimistic atmosphere within the business with the increase of Generation Y and retiring Baby boomers. Schedules become more significant over service quality in current constantly changing business environment around the world. Also, with the rise of ecological concern, consumers are searching for eco-friendly transport methods. However,...
Words: 2349 - Pages: 10
...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...
Words: 2271 - Pages: 10
...Australian airlines have been impacted by the global crisis. This specific article in the Financial Times Review(Clarke & Smith, 2011), discusses that strategically Qantas was facing hard times due to the environment of the global financial crisis and it had embarked on an implementation plan to decrease internal and external flights to counter the effect of hiking oil prices and operational cost. However, in the United Arab Emirates, has been experienced growth and this has a direct concern to the threat of competition to Qantas (Vesperman, Wald & Gleich 2008, pp. 388-394). All these factors above are a contributed force to Qantas to remain competitive. This paper seeks To address the approaches that should be engaged by Qantas that are necessary to ensure ongoing competitive advantages for the future of the airline industry within this hypercompetitive environment. 2. Strategic Management and Strategic Competitiveness Strategic management is a continuous process that involves reviewing and directing the activities of a business and the environment threats and opportunities within which it operates. Strategic management has grown from an initial emphasis on planning to become a broad management approach that helps organisation, align its direction with its objectives to attain strategic competitiveness. Strategic competitiveness refers to the A competitive advantage is achieved when a firm produces at lower operation costs compared to the other players...
Words: 1516 - Pages: 7
...Operational Procedures! 3.3 Personnel needs and uses! 3.4 Proximity to supplies! ! 4.0 Management! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! 5.0 Financial Forecast! 6.0 Critical Risks! ! ! ! ! ! ! ! ! ! ! 6.1 Potential Problems! ! 6.2 Obstacles and Risks! ! 6.3 Alternative Courses of Action! 7.0 Evaluation! ! 8.0 References ! ! ! ! ! ! ! ! 1.0 Executive Summary ! Qantas is Australia’s largest domestic and international airline. It provides more than 750 international services a week to Asia, the Pacific, North and South America, Europe and South Africa. In 2008 Qantas recorded a net profit of $970 million. Its unit costs are down 2.3% mainly as a result of increased use of technology, outsourcing, relocation staff overseas, casualisation of the workforce and taking advantage of new flexibilities (AWA’s) in certain parts of the workforce. Experiences in international markets demonstrates the intricacies for Qantas operating as a global business, however Qantas has managed to deal with these complexities particularly well. Nevertheless, despite its well sustained management and business profitability, Qantas is hardly immune to the global financial crisis, and has announced capacity reductions, profit downgrades and job cuts, including 90 senior executive jobs, 500 managerial jobs, and an addition 1500 jobs, which are expected to save Qantas about $24 million a year. Qantas has to adapt new Financial Strategies in order to obtain economies of scale, and insure...
Words: 3015 - Pages: 13
...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...
Words: 2203 - Pages: 9
...• A 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...
Words: 1297 - Pages: 6
