Jetstar Analysis

Maintain Qantas frequent flyer as a driver of loyalty across group and as a leading loyalty program.

The boards of directors are implicating new strategies to help Qantas renew in the post maturity stage. These strategies are:

This report will consider the appropriateness of the services offered in Jetstar for leisure travelers in its discussion, and will draw a conclusion on how certain concepts of these strategies can be utilized by managers at JS. Also, the interpretation of the different product strategies JS can implement. Lastly, the report will provide recommendations that could be implemented by JS for improvement to better understand the buyer’s characteristics.

Customer service is a valuable influence on quality. Qantas delivers the expectations of customers by representing civil and accommodating staff members. Qantas has implemented a series of operational strategies to enhance the speed of their service. These vary from booking flights online, online check in, check in kiosks and Q Bag Tags. Dependability at Qantas is based on the consistency of on-time departures and arrivals. Flexibility is relevant to Qantas’ responses to the changes in market demand. Flexibility is demonstrated through Jetstar’s variable fare. Qantas offers customisation through its participation in the Oneworld Alliance, where it can provide its services to over 680 destinations in 134 countries. Qantas has worked on developing less costly and more efficient opportunities for its consumers by launching new discount airlines: Jetstar and Jetstar

Rivalry among industry competitors has caused attention to be focused on tariff levels. Airfare prices were at an all time low in 2009. This suggested a strong competitive rivalry based on price differentiation. This price differentiation will cause a dramatic loss in revenue if these prices continue to drop and this would lead to a reduced competitiveness. In an effort to safeguard revenue and reduce expenditure, Qantas has developed a strategy to deal with a change in the external competitive environment. .

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

Qantas capitalized on by increasing its domestic share of the market from 55% to approximately 80%. Qantas management had effectively filled the gap left by Ansett by moving planes from the depressed international routes to the company’s expanded domestic market and by leasing planes from overseas to expand its aircraft fleet by

Another strategy that Qantas has used to respond to globalisation is through product differentiation. Qantas maintained it’s competitive advantage by providing a service which was unique and different to those of it’s competitor. Qantas was known for having ‘the best safety record of any airline in the world’. The airline was also ‘true-blue’ Australian and was Australian owned. This made the business different and attracted customers towards Qantas giving it a competitive edge over it’s foreign competition. Following the deregulation of Qantas, the business has started to lose sight of what it really was. The business has recently decided to implement another

Flight Centre describes itself as a global discount flight specialist. Taking into consideration the relative size of the Australian and international operations as well as the availability of information on global environment and competitive factors, for this analysis, it is more appropriate to consider the Flight Centre’s industry environment as “The Australian international and domestic airline

Virgin Australia which was formerly called Virgin Blue is the Australia’s second largest airline. The airline was started in 2000 by British business tycoon Sir Richard Branson and former Virgin Blue CEO Brett Godfrey. The airlines started as low-cost carrier, but went on to become a “new-world carrier” (Virgin Blue media release, 2011). This low cost airline went on to become a full-service airline by 2012 with the name of Virgin Australia. Since the year 2000 the airlines grew rapidly and posed threat to Qantas airline and over the years Virgin Blue looking at the marketing trends and characteristics of the aviation industry grew into a Full Service Airline and is considered a four star airline by research consultancy firm Skytrax.

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

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.

Jetstar Airways is an Australian low-cost airline headquartered in Melbourne, Australia.[3][4] It is a subsidiary of Qantas, created in response to the threat posed by low-cost airline Virgin Blue (now known as Virgin Australia). The airline operates an extensive domestic network as well as regional and international services from its main base at Melbourne Airport,[5] using a mixed fleet of Airbus A320 family and Airbus A330 aircraft. Parent company Qantas also has stakes in sister companies Jetstar Asia Airways and Valuair in Singapore, Jetstar Pacific Airlines in Vietnam and the new Japanese carrier Jetstar Japan. Jetstar shares its parent's strong competition with Australia's biggest low-cost carrier Virgin Australia. Both Tiger

Airline companies are becoming more and more competitive as the low budget discount airlines are becoming popular. It is key for airlines to differentiate themselves among the various airlines to choose from, and United Airlines wanted to ensure that it offered products and services for all marketing segments. “United realized that it needed to develop a customer-centric future strategy and galvanize its organization to improve the customer experience for its most valued customers” (Prophet, 2012, para. 1). This paper discusses the marketing plan for the newly merged

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