Case Study Of Jetstar

The purpose of the report is to critically review the appropriateness of the services in Jetstar (JS) for the target segment which is identified as leisure travelers. Through extensive research, this report evaluates ideas of

Lastly, competitive rivalry for Jetstar is high. There are many competitors and they are not just from other budget airlines but full service airlines as well. This is because many full service airlines recognised the threat of the presence of budget airlines. Therefore, they started to provide low switching cost to lure customers that wants to enjoy the comfort and quality of a full service airline at just a small increase in ticket

Jetstar Airways Proprietary Limited are a completely owned subsidiary of the Qantas Group, they operate across 19 different Australian destinations, and 17 overseas destinations. They were established in May 2004. Jetstar’s fleet across Australia and New Zealand is made up of 80 aircraft. Their focus is on providing a low-cost or “value based” airline, and commit to doing so by ensuring a “price beat guarantee” where, if challenged, they pledge to beat rival airlines by 10% (JetStar, 2015). Their current brand slogan is “Low Fares Forever”.

This method involves selling products below production cost. This attracts customers to the business, who then purchase other products. Ultimately, this improves profits, brand loyalty, and market share. Qantas has used this strategy during the launch of its subsidiary, Jetstar, in 2006. For example, flights from Melbourne to Sydney was offered at $19. These low airfares attracted customers away from its competitors, such as Virgin Blue. This had seen

Rising fuel prices has a huge impact on the airline industry. In an article published by the New York Times in 2007, oil prices were hovering ‘near $100 a barrel’ which caused the International Air Transport Association (IATA) to ‘slash’ their predicted profits for 2008 from ‘$7.8 billion to $5 billion’ (Clark, 2007). In 2008 high fuel prices were ‘dominant factor’ in the losses that faced the industry, and continued to same effect in 2009 (Dunn, 2009). Diagram 2 shows how fuel price has increased and fallen over the last 5 years.

The purpose of this memorandum is to address the profitability issues at Continental Airlines and to estimate the costs for 2009 to forecast the future outlook of the company. To address these issues, I used regression analysis to observe what effect the 11% reduction in flying capacity would have on the firm’s future operating costs. I also used the results from the regression analysis to verify the costs that, if reduced, would further comply with the implementation of cost-cutting initiatives and operational efficiencies that the company is striving for. Lastly, I consolidated the data to forecast Continental’s financial outlook for 2009, then provided insight

According to Hubbarb, Rice and Beamish (2008) organisation resources can be defined as the tangible and intangible assets of the organisation. Tangible assets are those items that are easy to identify and both fixed and current assets for example machinery, buildings, lands and inventory. For Qantas Jetstar Domestic, the tangible resources would be the 10 new aircrafts and with up to 64 daily services that is going to be adding on to the business from September 2012(Saurine 2012). The reason for Jetstar for doing this is because they just owned the title of the most late-running planes of all major Australian domestic airlines in the past year (Saurine 2012) therefore this is one of their strategy to try to keep up

Over the years, company sustained low operation costs and tickets prices following well-developed strategy. Among other measures, it was able to keep prices low by flying only one airplane type, minimizing service and maintenance expenses, and convincing employees to cut gate turn-around times and make the airline more efficient (Fitzpatrick, 2005).

Launched just 8 years ago, today, the Jetstar Group consists of a network of value-based air carriers that deliver high quality air passenger services for budget-minded travelers across Australia, New Zealand and the Asia Pacific region. Beginning with just 400 employees, the company currently employs more than 7,000 people and carries about 20 million passengers a year. To gain some insights into how the Jetstar Group achieved this impressive growth in such a short amount of time, this paper provides a review of the relevant literature concerning the air passenger industry in general and the business strategy used by the Jetstar Group in particular. A summary of the research and recommendations for this company are provided in the paper's conclusion.

JetBlue’s strategic plans continue to find ways to remain as affordable and as cost efficient for both the company and the costumer by controlling monitor fuel cost and offering newer jets as they reduce the cost fuel. The newer jets run at better speed, decreasing the cost and actual air travel time. JetBlue has associated itself with the program Nextgen. Newer methods are developing to reduce fuel waste and to reduce air traffic (Jetblue.com/green, 2012). Containing the cost to a smaller budget will continue to keep JetBlue ahead in the airline market, and still allows them to stay at a low cost.

The airline industry has always been a fiercely competitive sector. Since the invention of low-cost carriers, also known as no-frills or

There are two major strategic issues facing JetBlue. The first is that the company is growing very rapidly. This brings with it a number of critical challenges, such as recruitment and selection, maintaining the corporate culture, and maintaining high service levels. Secondary goals associated with this are maintaining safety standards, finding profitable routes to occupy and avoiding a unionization drive. Growing a company this rapidly is possible given the strong initial financing that the company has, but challenging in that the faster the airline grows, the more difficult it will be to find the right people and the right routes. The company can grow rapidly while plucking the low-hanging fruit but these tasks become more difficult over time.

In July 2007, Qantas acquired a 18% stake in Vietnam's Pacific Airlines, to increase to 30% by 2010. The airline was relaunched on 23 May 2008 as Jetstar Pacific. On 1 August 2008 Jetstar announced that it had signed an agreement with the Northern Territory Government to make Darwin International Airport an international hub with plans for seven aircraft to be based in Darwin. Under the agreement Jetstar would be required to base three aircraft at Darwin by June 2009, with a further four by June 2012, with the Territory Government to provide A$5 million to set up the hub and a further A$3 million for promotion of the new routes.[12] On 28 April 2009, Jetstar commenced daily direct services from Auckland to Gold Coast and Sydney. On 10 June the same year Jetstar commenced domestic New Zealand flights between Auckland, Wellington, Christchurch and Queenstown. Jetstar replaced Jetconnect on these routes using Airbus A320 aircraft. From 1 February 2011, Jetstar started its co-operation with the oneworld alliance, allowing people booking an itinerary with a full oneworld member to include a Jetstar flight in the itinerary. However, the flight must be sold via Jetstar's corporate parent Qantas, under a QF flight number.[13] In August 2011 Jetstar's parent Qantas announced that it will set up a new airline to be called Jetstar Japan,

The Airline industry has experienced continual problems with rising costs with both fuel and maintenance which has caused them to increase their fees to the consumers to pay for those rising costs. This paper will help explain what an airline such as Delta does to help alleviate such costs without forcing its consumers to flip the bill through high fees that consist of tickets, baggage fees and food. The costs of doing business in aviation today have spiraled out of control making it very expensive for both airlines and the

The future of the industry is in JetBlue’s “cheap chic” style. Airlines need to maintain a cost effective price point while also not appearing cheap. Small