Qantas and Emirates: Strategic Alliance Analysis Essay

This report largely focuses on constructing a situational analysis of Qantas Airlines. An organisations situational analysis refers to an analysis that consists of ascertaining the key factors that will be used as a basis for development of marketing strategy. (Elliot 2014). Situational analysis consists of the environment analysis (both internal and external environment), competitor’s analysis and finally the swot analysis.

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.

At the moment Australian passenger airline industry is dominated by thee large domestic carriers: Quantas, Jetstar and Virgin Blue.

Overall, Qantas Airway is a strongly established airline company in the world; however it will need strategic planning in order to tackle potential threats.

Qantas’ mission is based on their goal to be, “the world’s best premium airline, offering a genuinely global network, providing outstating travel experience, working with strong partners- and putting safety first at all times.”(Qantas, 2013). Qantas is faced with competition within the domestic airline industry from Virgin Australia and Tiger airways and international competition comes from several major airline operators including Virgin Australia, Singapore Airlines and Cathay Pacific (Fisher and Waschik, 2002 p. 317). Hill, Jones and Schilling (2013) describe competitor analysis as focusing upon the overall industry in which a firm competes, to attempt to understand objectives, strategies, assumptions and capabilities. This can be considered through an industry environment analysis of the competitive forces model.

QANTAS operates an average of 450 domestic flights daily and around 540 international flights every week,

The Qantas Group has a strong sense of obligation to support the societies in which they operate. Partnerships, charitable fundraising, volunteer works by employees and emergency humanitarian aid are being undertaken throughout the year. In short, Qantas works hard to uphold its position as a responsible corporate entity and an iconic Australian company. Some of their initiatives and programs are:

Over the last decades of airline industry, due to the oil crisis, 9/11 attacks, SARS outbreak and the intense competition within the airline industry, airline companies have faced the challenge such as airline companies bankrupted(Lin & Fang,2003), so the airline companies decide using the “strategic alliance” to run their business, not only can collaborate with other airline companies to increase the domain of the operation but also cut down the cost to increase the operational performance and profitability. (Tang&Tseng, 2010)

The Australian government is taking measures to help Qantas Airways Limited to tide over the difficulties. British Airways and Qantas Airways Limited are considering a potential merger, which is considered the most ambitious initiatives in accelerating the integration process of world 's aviation industry (Duval, 2008). It was a truly global airline step, because the two sides’ route network coverage matched well. If the two companies successfully merged, the two sides will reduce the waste of resources brought about by coincidence, by the combined route network expansion, in a number of key revenue synergies and will further consolidate the

Airline companies co-operate with their alliance partners through code sharing, franchises, block space agreements and frequent flyer programs to reach out to their global customers

According to ACCC chairman Rod Sims ‘The ACCC considers that the alliance is likely to result in public benefits through enhanced products and service offerings by the airlines, and improved operating efficiency” and this was perhaps one of the biggest impacts of this partnership on both airlines. It is certain that the new look of the premium product offered through this partnership will not only give existing customers a unique flying experience but also because of its premium appearance and distinctiveness will certainly attract more

The deregulation in the 1990s has greatly altered the structure of the aviation industry in Australia as well as internationally (Kain & Webb 2003). This deregulation in air fares, passenger numbers and quality of service has facilitated the rapid growth of low-cost carriers (The Department of Infrastructure and Regional Development 1995). While these changes in policies have been relatively beneficial in the consumer’s perspective, it created many challenges for legacy airlines such as Qantas. The entrance of low- cost carriers threatens legacy airlines’ market share since they are more flexible in service provision and that allows them to make a lot more profit. Moreover, Virgin Blue as a successful low-cost carrier

Through the formation of alliances, airlines have created economies of scale through extensive use of a

In less than twenty years, the global industry has gone through tremendous change. Several airlines had gone out of business that had been on top of the industry for years. One of the remarkable changes had been airline alliances. The case focuses on the airline industry and how airlines are forming alliances and joint ventures. It then introduces the partner firms Air France KLM , and Delta . Air France KLM had over 25 collaborative agreements with other carriers and was a founding member of Skyteam, one of the leading airline groups. Air France KLM and Delta Airlines formed revenue

The Global Airline Alliances is an important part of the airline business industry in the 21st century, this includes: the increase of airline performances, provides great benefits for the employees, customers and for the marketing industry. There are three main alliances in aviation today, this includes, Star Alliance, Oneworld and Skyteam.