Jetstar Essay

In the local region, Qantas managed to outweigh its competitor by gaining a toll of 65% compared to its competitor. Evidently this shows Qantas is the number one preferred airlines compared to other competitor airlines like Virgin, Tiger Airways and Emirates airlines. However the situation is not the same in South East Asian region as Qantas only managed to obtain about 15% of market share compared to likes of Air Asia who leads the market share with 60% in this region. Conversely, this is not a concern for the airlines as the airlines managed to generate revenue of 5 billion dollars, with a predicted passenger growth of 4.9% which is equivalent to 2.9 billion passengers by 2034.

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

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.

“Aviation is a major contributor to Australia’s tourism industry. As an island continent with no land borders, Australia relies almost exclusively on air services to bring international visitors to the country, with over 99 per cent of inbound tourists arriving in Australia by air.” (Australia, 2014)

Jetstar initiated Australian household operations on 25 May 2004. Headquartered in Melbourne, the minimal effort, worth based transporter presently works up to 2,400 flights a week to 52 destinations, on local Australian and New Zealand administrations, universal administrations from Australia to New Zealand (started June 2009) and into Asia, and additionally inside of Asia. Jetstar is today one of the two biggest minimal effort bearers in Asia, where the Qantas Group has extended the Jetstar brand with direct interests in Jetstar Asia (situated in Singapore) and Jetstar Pacific (Vietnam). The orange star in the Jetstar Australia logo symbolizes Epsilon Crucis, the littlest and just five-point star in the Southern Cross, as spoke to on the

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.

The following report examines the organisational environment for the Australian Airline industry with particular emphasis on the task and general environment followed by analysis Jetstar Airways’ business-level strategy focusing on the airline’s competitive advantage.

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

3,4- The Airline industry and the market The airline industry is large, specially in the United States, mainly due to the “ Deregulation” of the industry. In 1938, the Civil Aeronautics Board was created to control the growth of the air transportation industry. This board had the authority to control entry, exit, prices and methods of competition. In the late 1970 this structure was found inefficient and in 1978 deregulation took place. Due to the deregulation of the industry competition intensified, prices dropped, and the number of people travelling increased. Many new companies emerged and regional airlines saw deregulation as an opportunity to expand. Due to the rise in competition, by 1986 mergers started to take place and in 1987 64.8% of the market was controlled by the four largest airlines. The demand for air travel is determined mainly by price, studies revealed that half of the leisure travellers and on quarter of business travellers did not have a preference for a particular airline, which means that prices determined the

The Jetstar group is a network of value based airlines that provide affordable Austrlia,Newzealand and pacific region.It is launched in 2004 and they have flown over 130 million passengers and become the largest low cost carrier in the asia pacific by revenue .Their business mission is to offer 24/7 low fares enable more people to travel to different places,more often .In the beginning they started with 400 emplyees but now they have more than 7,000 multilingual employees and embassadors across asia pacific today.They have group consists of five airline are Jet star Australia and Newzealand (Wholly owned by quantus group). Jet star asia in Singapore ,Jetstar pacific in vietnam,Jet star Japan and Jetstar hongkong. Jetstar brand airlines have combined fleet of more than 110 aircrafts.

JetBlue was established in 1999, and was the third airline start-up for founder and CEO David Neeleman. Neeleman managed to gather $130 million, the most ever raised for a start-up airline, from investors that included Chase Capital and financier George Soros. With the large start-up capital he purchased new Airbus A320 jets equipped with satellite TV, a first in the industry. In 2004 the company ordered an additional 30 new A320 aircrafts from Airbus. The airlines first flight was from New York to Fort Lauderdale in 2000. During the year, the airline added nine more destinations in California, Florida, New York, Utah, and

While the cost of fuel represents one of the biggest outlays within the aviation industry - average fuel costs amount to some 29% of running costs (IATA, 2016) – one would expect to see savings made on the bottom lone by airlines passed onto the consumer / passenger in the form of reduced fares. This however, has not proved the case across all carriers, indeed the place where savings are most obvious to those looking to travel is almost exclusively within the low cost model operators such as Ryanair and EasyJet, while in

• Lower-cost airlines are finally finding the ingredients to succeed in intercontinental and business travel markets, validated by the operations of JetBlue, AirAsia X and Virgin Australia.