Qantas Marketing Audit Essay

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Qantas is the world's second oldest airline, having been founded in the Australian outback in 1920. It is Australia's largest domestic and international airline. The name comes from the initial letters of the words in the original registered title—Queensland and Northern Territory Aerial Services Limited.
The Qantas Group employs approximately 32,500 people and operates a fleet of over 250 aircraft, comprising Boeing, Airbus and Bombardier aircraft from full-size long-haul aircraft to smaller short haul aircraft. The Group offers services across a network spanning 182 destinations in 44 countries
(including those covered by code share partners). International Air Transport Association (IATA) data for 2009 shows Qantas was the world's
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Reflecting this, the need to cut costs is a central tenant of the Group's strategy for Qantas. According to the airline, the cost base is around 20 per cent higher than key competitors.3 It simply does not have the low cost structure of many of the competitors, especially the Asian competitors. Neither does Qantas have the well positioned hubs of the competitor Asian and Middle Eastern carriers. Accordingly Qantas is having to undertake its marketing in an environment where competitors, such as Emirates, Etihad, and Singapore Airlines
(with great hubs) are tackling them head-on. Given the above, a large number of Qantas routes, primarily to Asia and Europe, are loss-making.4

In contrast, a central tenant of the JetStar strategy is to grow the brand in Asian markets through standalone operations, joint ventures and strategic alliances, as much as possible and as rapidly as possible. Jetstar is one of the world's fastest growing and most profitable low-fares airlines, set for significant future growth.5
Management perceives that part of the solution for the Qantas division of the international business is offshore maintenance of aircraft, employment of overseas flight
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