Qantas Case Study

Question One: Outline the methods of expansion used by the company. Qantas which was founded in 1920 was first only a domestic airline. Eventually the company began travelling internationally and started expanding itself into the global market. Qantas today has become Australia’s national airline and one of the world’s leading long distance airlines. To become one of the worlds’s leading airlines; Qantas expanded into the global market in numerous ways. Qantas became involved in global alliances for example: one world alliance – which is a global airline service bringing together 11 of the world’s biggest airlines. One world alliance helps to create loyal customers with frequent flyer points to help create airline recognition. One world alliance is a part of Qantas’s code sharing agreements. A code sharing agreement is a commercial agreement that grants passengers access to two different airlines through one ticket. Qantas has used code-share to access itself into a bigger market without the risk of much loss. Another example of the expanding methods used by Qantas was gaining possession of Australia’s first low frills airline Compass Airlines in 1997 after the company chairman was thrown into jail & also acquiring impulse airways in 2001. The merging of these two companies became the basis of jetstar airways. Jetstar is one of the subsidiary companies created by Qantas apart from Qantaslink, Q catering & Qantas Freight etc which were all created as a response to competitor virgin blue airlines. One of the outcomes of the subsidiary companies was stated by Qantas chairman in an annual meeting stating “the subsidiary companies provided significantly improved returns...” These significant returns have kept the company Australia’s leading airline.

Question Two: