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Business of Qantas
Australia's largest airline is named as QANTAS and it is taken as a symbol of national pride by many Australians. On 16th November 1920, it started its operations as the Queensland and Northern Territory Aerial Services Limited (QANTAS) in Queensland. To date, QANTAS is known to be one of the strongest brands in Australia and regarded as world's best long distance airline. Nearly 140 destinations in nearly 40 countries are covered by the airline while carrying almost 40 million passengers (Fleisher and Bensoussan, 2007). QANTAS is the market leader on the domestic front. However, Virgin Blue is considered to be its competitor that started its operations in August 2000. Internationally, this airline is leading the market in regards of flights to and from Australia, but having tough competition from Malaysian Airlines, Emirates, Air New Zealand and Singapore Airlines.
Annual report of QANTAS highlights many fact and figures which indicates that the airline has experienced a rise in profits by 58%, and making profit before tax of $1,032.1 million for the year which ended in June 2007. Jetstar, one of the brands of QANTAS, has been offering services since May 2004 which is centered about cost differentiation. The strategy behind the formation of Jetstar allows QANTAS to meet the varying customer demands, and compete with low budget airlines while capturing the wider market. Generation Cabins and seating has been provided by the airlines to the customer. Moreover, premium economy will be in operations on international B747-400. Jetstar offers cost effective services to the customers by...
It also provides with exceptional customer service (Qantas Annual report 2009).
Strategic planning and Qantas
Qantas has recently had its credit rating reduced to sub-investment grade by the ratings agency Standard & Poor, making access to capital more expensive. QANTAS asked for assistance from the federal government but got a response of 'get your house in order'. This paper outlines the strategic choice QANTAS has to make 'to get their house in order'. To achieve success, planning should be the integral process for any company. QANTAS and other airlines are striving hard to make good plans in order to attain their goal. QANTAS also did some good planning in this regard. The following section will discuss their plans and some suggestions, reviews and ideas to improve for better results.
Summary:
Steven Creedy wrote an article "Qantas looks to extend lead with upgrade" which showed that some planning theory is being announced by the CEO of QANTAS airline. There is a budget set up of millions of dollars to improve the flights, lounges and other services offered by the airlines in order to overcome their competition with Virgin Blues. It is also stated that the airline is soon introducing a new technology for passengers to check in.
Moreover, QANTAS promises to beat all the competitors including Virgin Blue and that's what makes QANTAS stand out in the local market. Upgrading includes improvement of aircraft, food, on-board entertainment, services, lounges and infra-structure. Additionally, QANTAS has plans of offering…
References
Creedy, S., 2010, Qantas looks to extend lead with upgrade: check-in, The Australian, 29 July, p. 23.
Fleisher, C and Bensoussan, B., 2007, Business and competitive analysis methods, Wharton School pub, ACM Online Book Program.
Qantas Group, 2009, Annual report 2008-2009, accessed from http://annualreport.qantas.com.au.
Schermerhorn, JR, Davidson, P, Poole, D, Simon, A, Woods, P & Chau, SL., 2011, Management: foundations and applications, 1st edition, Wiley, Milton, QLD
Qantas Airlines External Environment Threat of New Entrants -- Medium Supplier Power -- Medium Buyer Power -- High Threat of Substitute Products - Low Competition -- High Strengths Weaknesses Opportunities Threats Qantas's Strategy for Competitive Advantage Recommended Strategy Cutting Costs Finding New Innovation External Environment Threat of New Entrants -- Medium Australia has deemed that it is good for the public if any international airline that is foreign owned is allowed to operate in Australia's domestic markets. While this may be good for the overall level of
Jetstar also now gives customers with more expensive tickets priority boarding, although it plans to retain unallocated seating for reasons of efficiency. The airline buys the points from its parent but strategically recovers costs by prompting people to buy more expensive tickets and attracting back customers (Creedy, 2005). The carrier's frequent-flyer scheme has produced a revenue gain that offset its cost, such as big business routes, an immense amount
Ultimately, the airline has been able to extract concessions from its other unions and can expect to do the same with the AMWU. Qantas should deal with the issue of worker unhappiness through non-financial means, such as fostering an organizational culture change. The airline industry is facing a difficult operating environment. Qantas must find new ways to cut costs in order to remain competitive. The recent mechanical failures are not
This is a poor use of the company's capital, since the global economy remains weak and since Qantas faces intense competition on numerous fronts. While increasing the debt component of the capital structure would lower the overall cost of capital, it would also increase the risk that the company faces. The operating environment is turbulent, not just from competition but from high fuel costs as well. This implies that
The steep reduction in revenue at Virgin Blue resulted in a reduction in their efficiency ratios. Given that the company continued to expand in size with only a minor expansion in revenue, their efficiency suffered. There is evidence of overcapacity, an issue that they have addressed in the interim with service cuts (Associated Press, 2009). Financial Stability -- Short-Term Both companies are liquid at present. Qantas, however, has seen the more
Qantas Airlines Strategic Management of Qantas in the Light of Global Financial Crisis The Global Economic/Financial Crisis, also known as GFC has influenced the performance of all organizations negatively in the current business environment. Besides increasing the costs of operations, GFC threatens the use of human resources in different organizations. With such a premise, this study analyzes the influence of the crisis on the performance, sustainability, and competitiveness of most of the