Essays on Marketing Macro Environment - Airline Industry in Australia Case Study

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The paper "Marketing Macro Environment - Airline Industry in Australia " is a good example of a marketing case study.   The Airline industry in Australia is slowly growing and statistics show that it has faced certain challenges in the past five years. The major airlines today in terms of domestic and regional flights are the Qantas, which is the largest, followed by Virgin Australia, Jetstar and Tigerair. The airline industry being an industry like any other has experienced several factors in terms of the macro-environment that has brought about various threats and opportunities (Forsyth 2005).

Likewise, the individual structure and composition of each airline and the services offered contribute significantly to the decisions made and the actions taken in the course of addressing certain issues (BITRE 2012). Looking at the collective analysis of the background information, growth, and the current state of market, threats and opportunities, this paper will enable a better understanding of the state of the industry today. 1.1 Background and Structure The Australian airline industry has faced turbulent times in the past years starting from the decline of international tourism in the aftermath of the 2001 terrorist attacks on the USA.

In addition to this, the major wars in Iraq and Iran as well as the outbreak of diseases such as SARS (Severe Acute Respiratory Syndrome in Asia and Canada. The industry has slowly been under major restructuring from when there were only two major airlines Qantas and Ansett Australia and the entrance of Virgin blue and Impulse Airline (Forsyth 2005). Today, however, it is certain that the airline industry has greatly changed and that many such as virgin Australia have improved its market share enough to offer great competition to Qantas.

Looking at the internal components of every airline in Australia, it is important to note that the structure of most is the same in terms of the facility charges, expenses, administration, passenger services, flight services, airline responsibilities and maintenance. Figure 1: Showing the overall composition of Most of Australian Airlines. Source: Wensveen J., 2010. The Airline Industry: Trends, Challenges, Strategies. New York, USA In terms of size and growth, looking at the analysis carries out from 2015 to 2016; it is clear from the table below that there is considerable growth in terms of passengers, revenue, available seats and the trips. Table 1: Showing summary of the annual growth, 2015-2016 in the Australian industries Summary of annual RPT activity   2015 2016 Growth Total passengers carried Revenue passenger kilometers Available seats Available seat kilometers Load factor Aircraft trips 57.34 million 67.59 billion 76.81 million 88.63 billion   76.3 % 633.6 (000s     58.04 million     68.50 billion     77.43 million     89.36 billion   76.7 %   638.1 (000s)         1.2 %         1.3 % 0.8 %       0.8 %       0.4 *       0.7 % In this instance, therefore, evaluating the given figures in relation to the macro environment and other forces shaping this industry will give a better analysis of the position of the Australian airline industry today. 2.0 Forces That Shape the Australian Airline Industry 2.1 Marketing Macro Environment The Macro-economic factors refer to the external and uncontrollable issues that generally affect the performances and statistics of a particular industry (BITRE 2012).

In the Australian Airline industry, there are a number of factors that provide an opportunity or act as threats in the course of operation (Freed 2016). The broad categories, in this case, include the environmental, political, economic and financial issues, infrastructural issues and social factors.

References

Australian Government, 2016. Report on Australian airline activity(BITRE). https://bitre.gov.au/publications/ongoing/domestic_airline_activity-time_series.aspx

Bureau of Infrastructure, Transport and Regional Economics (BITRE), 2012, Avline 2010–11, Canberra ACT

Forsyth, P., 2005. Competition versus predation in aviation markets: a survey of experience in North America, Europe and Australia. Aldershot, Hampshire, England, Ashgate in association with the German Aviation Research S

Freed J., 2016 The Australian Domestic Aviation Demand weakest in the world: IATA: http://www.smh.com.au/business/aviation/australian-domestic-aviation-demand-weakest-in-world-iata-20160204-gmm8nq.html#ixzz48wxUowTF

Kain, J. and Webb, R., 2013. Turbulent Times: Australian Airline Industry Issues 2003. Information and Research Services, Department of the Parliamentary Library.

Nancarrow, D., 2011. Australia gets a new budget airline. The Sydney Morning Herald.

Peoples, J., 2012. Pricing behaviour and non-price characteristics in the airline industry. Bingley, Emerald. http://www.myilibrary.com?id=340646.

Pond S., 2016. Guardian, Sustainable Business. Australian biofuels could transform airline industry and create jobs. http://www.theguardian.com/sustainable-business/2016/apr/21/australian-biofuels-could-transform-airline-industry-and-create-jobs

Senator, S.S.F.F.F., 2007. for Victoria, 2007.,–Family First Dissenting Report: Inquiry into the Qantas Sale (Keep Jetstar Australian). Amendment Bill.

Wensveen J.,2010. The Airline Industry: Trends, Challenges, Strategies. New York, USA

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