qantas industry
Table of Contents
Table of contents 1
Executive Summaries 2
Introduction 3 Analysis 4
Recommendation 8
Conclusion 9 Refferences……………………………..…………………………………………………………………………………………………………10
Executive Summary
Michael Porter once said in an interview:
“The airline industry is one of the biggest business that exist today. But it’s sticks to the bottom of the list when it comes to profitability.”
-Michael Porter, Harvard Business Review, youtube.com
The airline Industry is the one of the largest business in the world today. But like any other business it has its challenges. The first is the cost of running the airlines itself. An aircraft requires whole crews of engineers to maintain its functionality. And then there’s the market. Competition comes from various international airlines, each offering a different route and different types of services. Those two factors comes to a conclusion: Any airlines who can offer less in terms of ticket pricing will win the market. This causes a new trend within the industry: The Low Cost Carriers. The new trend is highly popular for the new players who seeks to break into the Industry. By offering a price that is less than the current popular or flagship airlines, these new players profit from people who seek a cheaper way to fly. They usually operate within the domestic market of a country, using the country’s tourism as part of its marketing strategy. This creates a distortion within the airline industry. Other “full cost” airlines had no choice but to drop their prices or create a new branches that cater to that market segment in order to compete.
It has not been a good year for Qantas. The Airline has claimed its first quarter loss. The timing of the loss comes as very odd, as the first quarter is usually the time they make their profit. Competition is also a huge problem for Qantas. Its on-going capacity and price war with Virgin Blue is making the airline slumped even
Table of contents 1
Executive Summaries 2
Introduction 3 Analysis 4
Recommendation 8
Conclusion 9 Refferences……………………………..…………………………………………………………………………………………………………10
Executive Summary
Michael Porter once said in an interview:
“The airline industry is one of the biggest business that exist today. But it’s sticks to the bottom of the list when it comes to profitability.”
-Michael Porter, Harvard Business Review, youtube.com
The airline Industry is the one of the largest business in the world today. But like any other business it has its challenges. The first is the cost of running the airlines itself. An aircraft requires whole crews of engineers to maintain its functionality. And then there’s the market. Competition comes from various international airlines, each offering a different route and different types of services. Those two factors comes to a conclusion: Any airlines who can offer less in terms of ticket pricing will win the market. This causes a new trend within the industry: The Low Cost Carriers. The new trend is highly popular for the new players who seeks to break into the Industry. By offering a price that is less than the current popular or flagship airlines, these new players profit from people who seek a cheaper way to fly. They usually operate within the domestic market of a country, using the country’s tourism as part of its marketing strategy. This creates a distortion within the airline industry. Other “full cost” airlines had no choice but to drop their prices or create a new branches that cater to that market segment in order to compete.
It has not been a good year for Qantas. The Airline has claimed its first quarter loss. The timing of the loss comes as very odd, as the first quarter is usually the time they make their profit. Competition is also a huge problem for Qantas. Its on-going capacity and price war with Virgin Blue is making the airline slumped even