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Executive Summary

This is an analysis report of Qantas Airways Limited (Qantas Group) basis on the 2011 annual report. For the auditing purpose, the report will mainly focus on auditing perspectives. First of all, an overview of the company and industry, it gives an idea of what the business conditions in which they face with. By using the SWOT tool, we ensure the analysis is matched with the real business situations. Moreover, the report will discuss different categories of laws which would be applicable the Qantas Group and also the potential level of the reliance that placed on the control environment of the Qantas Group. Furthermore, the report will briefly give a planning materiality bases and percentage regarding to our analysis.
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Threat of Substitute Products – Moderate: Air transport provides a fast, efficient and convenient travel system. Even though people might choice high-speed railway, vehicle for their short-distance trip, air transport might be the first choice for their long-distance trip, they could also choose the cruise which is slowly instead.
Bargaining Powers of Suppliers—High: The aircraft is the basic equipment for the operation of an Airline Company. But there are only a few aircraft manufacturers in the world, for example, Boeing and Airbus. These aircraft manufacturers have a strong bargaining power for both the purchase and maintenance of aircrafts. At the same time, as the fuel is another basic material for the operation of an Airline Company, the fuel price has an enormously influence on the airline business. Because the fuel price is out of control by the airline industry, so the fuel providers also have a strong bargaining power as well.
Bargaining Powers of Buyers – High: The buyers have a strong bargaining power because of the low switching cost and the development of the web booking system. Through the web booking system and some ticket agencies, customer can compare the prices of each airline company then choose the lowest price.
1.4. SWOT Analysis of Qantas Group
 Excellent and globally brand name and logo awareness;
 Two brands (Qantas and Jetstar) provide different services that satisfy the different demand of customers;
 As
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