Qantas Airways Limited Swot Analysis

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.

1) Qantas Airways Limited is the national airline of Australia, it is also the largest airline in Australia. The Qantas Group’s principal business is providing domestic and international air transport services for passengers. Additionally, Qantas owns several subsidiary companies such as Jetstar and QantasLink that also operates flights to domestic and international locations, and Q Catering, a premium full service flight caterer.

Government Policies –All businesses operating in Australia are subject to policies applied by the three different levels of government - local, state, and federal. Government policies have a big impact on Qantas. For example their economic policies (monetary, fiscal policy) have a direct impact of the level of economic activity and therefore demand for its service. The federal government’s new policy the Fair Work Act is a lot more pro worker which has increased Qantas’ operating costs. All businesses must be aware and understand all government policies in order that they are abiding by the law.

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. .

Qantas’ financial performance has been very successful in recent years with the business recovering strongly from GFC and a large decrease in revenue to ear 377 million in 2010. The effective financial performance has been the result of effective profitability, liquidity, efficiency, return on capital, good solvency and growth including the establishment of a new airline (jet star).

Management practices at Qantas are more flexible and adapted to suit challenges in society such as the reaction to terrorism, the introduction of viral disease and the ever changing market and customer requirements.

Qantas is the oldest airline in the English speaking world. It was founded by the three aviation pioneers Hudson Fysh, Paul McGinness and Fergus McMaster as the Queensland and Northern Territory Aerial Service in 1920 and has grown from one aircraft which offered air taxi services and joyrides to a

“We continue to work towards returning Qantas’ international performance to profitability in the short term. Our

Qantas is one of the most recognised and longest running Australian companies. It is the world’s second oldest airline, and has a successful history to uphold (Qantas Web Site, 2008).

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

Qantas is established in the Queensland outback in 1920 and after that it has become biggest domestic and international airline and strong brand in the Australia. It is enrolled as the Queensland and Northern Territory Aerial Services Limited (QANTAS) and the group two airlines brands are Qantas and Jetstar those provides transportation services of the customers. Qantas created its strong brand reputation through deliver safe and secure services, focus on customer services, maintain reliability of operations and focus on maintenance, engineering and technology (Qantas Airways Limited, 2014). Quanta main business aims or objectives are:

Domestic market Virgin Australia, including Tiger Australia (Virgin owns 60% of Tiger now), occupies 35% of the domestic market share in Australia, and its major competitor Qantas, including its subsidiary Jetstar, accounts for a majority of 61% of the domestic market share in January 2014.Qantas (QF) has grown by 18% over 5 years (Jan 2008 vs. Jan 2014) while Virgin Australia

In 2011, Qantas suffered complications from inside and outside the brand. Several job cuts and structural changes, their focus on returns to stock holders and not its responsibilities to the share - holders all added to their external issues. The external issues that rose were the increase of new competitors, changes in consumer decision making, the high demand of customers for lower rates and better quality. Lastly, Australians began their international travels with other international brands. 2016 has proven to be a turnaround year for Qantas relying largely on the lowered prices of oil and the falling Australian currency. Qantas recovered from a $2.8 billion loss in 2014 to a net profit of $688 million within six months. The turnaround has been described as “one of the most remarkable in history”

Owned by parent company Qantas, the Jetstar Group is comprised of a network of value-based air carriers that deliver passenger services across Australia, New Zealand and the Asia Pacific region (About Jetstar, 2012). The Jetstar Group's most recent five-year strategy has been to "turn the international business around [by] reducing investment in underperforming business areas and directing capital towards growth opportunities" (Qantas Reports Strong Full-Year Profit in Challenging Conditions, 2011). In addition, the Jetstar Group intends to "focus on improving the customer experience, develop a stronger and broader alliance

Emirates CEO, Tim Clark specified that he has been closely monitoring Qantas until he saw an opportunity for both companies through a strategic alliance, mentioning that Qantas had a problem with its international segment where Emirates could help with (Joyce, 2013). The 5 year strategic alliance does not restrict to code-sharing as it includes collaboration on scheduling, pricing and sales while taking equity in each other company is out of the question, mostly because of the uneven powers between organisations (World News Australia, 2013). Since 2011, Qantas started to restructure its marketing and