Qantas Internal Analysis Essay

On October 22nd, 2001, the Industrial dispute between QANTAS and its employees was initiated with the offering of a new Enterprise Bargaining Agreement. This proposed an 18-month wage freeze for employees plus a sliding scale profit share scheme. Ten out of twelve unions under QANTAS accepted the terms of the agreement, barring the unions of manufacturing employees (AWU and AMWU). They were holding out for a 4-6% pay rise. On the 8th May 2002, some ten months later, the dispute was resolved when QANTAS agreed to an across the board 6% pay increase. This essay provides an in-depth analysis into the dispute, including causes, the resolution process, the role of stakeholders, and costs and benefits for all concerned.

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

There will now be a look at the profitability aspect of Qantas airways operations. The following ratios have been selected for the last two most recent years of 2015 and 2016 these are the Gross profit margin, return on equity (ROE), and Return on Assets (ROA). The Ability to make profits and secure returns for investments are key indicators of a company’s financial viability (Birt, Chalmers, Maloney, Brooks, & Oliver, 2012). This is illustrated by the large increase in earnings per share seen in the market performance section. In the data,

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

A new entrant means competitor undermining the profits (Aarons, Waalewijn, 1999, pg4) of Jetstar, which is an established business. Therefore, threat in the future for Jetstar is determined by present barriers to entry. The biggest factor that prevents a newcomer entry in this industry is the cost of entry. The airline industry is one of the most expensive industries, due to the cost of buying and leasing aircrafts, safety and security measures, customer service and manpower (http://www.investopedia.com/features/industryhandbook/airline.asp, March 25, 2011). Other factors include high capital cost and government restrictions. Deregulation of the Australian Domestic airline market and realisation of Virgin Blue taking over the Domestic Market helped the formation of Jetstar in 2004 which was followed by birth of Tiger Airways in 2007. Introduction of Jetstar as a Cost-

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’ 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).

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

Qantas was founded by the Paul McGinneses, Hudson Fysh, Fergus McMaster and Authur Braird in Winton, Queensland on November 1920. Qantas is one of the largest airline in Australia and one one the oldest airline in the world. The story began when Paul Mc Ginnes and W Hudson Fysh heard of the award of $20,000 prize offered by the Government for the first Australians to fly in 30 days from England to Australia. The company was established under the name of The Wstern Queensland Auto Aero Service Limited, abbreviated to the ‘ QANTAS’.

84). I would run series of all these media advertisements, highlighting the Qantas inflight facilities and luxury features available, along with emphasising the airline providing high quality safety and environmental standards, and customer services. These forms of mass advertising will enable visual attraction of new and existing customers, towards the premium level of air travel services.

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.

Both of those identified problems shows the needs of change and develop for airlines companies. To keep the competitive advantages and have a better performance in this battle, Qantas have to grow and change.

Over the past quarter century, there have been a substantial amount of new entrants into the airline industry. There was a substantial quantities of capital required to set up an airline (Hanson, 2011). These costs have

Firms will offer loyalty to programs to frequent flyers. There will always be people needing to travel, therefore the customer base will be never removed from either Qantas or Virgin.

At the present time Qantas is one of the leading long haul airline companies and at the same time well-known brand in Australia.