Qantas Airline Analysis
QANTAS CASE ANALYSIS
* Introduction
Qantas or as it is nicknamed “The Flying Kangaroo” is the largest airline service that runs continuously and the second oldest in the world. It was established in 1920 as Queensland and Northern Territory Aerial Services Limited and first flew internationally in 1935 (Hanson, 2011). The growth of Qantas has been substantial with the most significant progression being the Australian government selling its domestic carrier Australian Airlines to Qantas in 1992 and the announcement of privatisation soon after (Hanson,2011). Throughout this journey of growth there has been extensive changes including flight costs, pay disputes, strikes and shutdowns, industrial action by pilots and technical staff. It has also had an impact on other airline companies, most notably the big competitor Ansett Australia. In the last quarter century there has been the launch of other competitors in particular Virgin Blue in 2001 and under the Qantas banner the primarily domestic low-priced Jetstar in 2004. This dropped the market share of Qantas to approximately 60 per cent and it is continually trying to sustain success. An analysis of Qantas and various strategies will be explored through this study. * External Analysis
Industry
Qantas is in the airline industry but in addition to this core business of transporting passengers and airfreight, it operates various subsidiaries. Qantas Link and Jetstar are airline companies under the same banner and Qantas also has association with inflight catering, holiday and travel and defence services.
After the privatisation in 1992 and foundation of Virgin in 2001 the Australian Airline Industry competiveness increased dramatically. Tiger Airways and Strategic and Alliance Airways are now established which is added pressure on Qantas and its profitability success. Civil Aviation Authority governs the industry and it has had problems with Qantas for example the shut down in Easter season 2000 (Hanson,
* Introduction
Qantas or as it is nicknamed “The Flying Kangaroo” is the largest airline service that runs continuously and the second oldest in the world. It was established in 1920 as Queensland and Northern Territory Aerial Services Limited and first flew internationally in 1935 (Hanson, 2011). The growth of Qantas has been substantial with the most significant progression being the Australian government selling its domestic carrier Australian Airlines to Qantas in 1992 and the announcement of privatisation soon after (Hanson,2011). Throughout this journey of growth there has been extensive changes including flight costs, pay disputes, strikes and shutdowns, industrial action by pilots and technical staff. It has also had an impact on other airline companies, most notably the big competitor Ansett Australia. In the last quarter century there has been the launch of other competitors in particular Virgin Blue in 2001 and under the Qantas banner the primarily domestic low-priced Jetstar in 2004. This dropped the market share of Qantas to approximately 60 per cent and it is continually trying to sustain success. An analysis of Qantas and various strategies will be explored through this study. * External Analysis
Industry
Qantas is in the airline industry but in addition to this core business of transporting passengers and airfreight, it operates various subsidiaries. Qantas Link and Jetstar are airline companies under the same banner and Qantas also has association with inflight catering, holiday and travel and defence services.
After the privatisation in 1992 and foundation of Virgin in 2001 the Australian Airline Industry competiveness increased dramatically. Tiger Airways and Strategic and Alliance Airways are now established which is added pressure on Qantas and its profitability success. Civil Aviation Authority governs the industry and it has had problems with Qantas for example the shut down in Easter season 2000 (Hanson,