Essays on Australian Airline Industry Value Report

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The paper "Australian Airline Industry Value" is a wonderful example of a report on management. The airline industry has witnessed a quick transformation following the introduction of new players in the air travel market. Australian industry had for a long term experienced monopoly in the area before the introduction of other competitors. Qantas Airways has been forced to reconsider its growth strategy in order to cope with increased competition (Reynolds 2010, p. 113). Passengers have enjoyed increased growth in product quality and the provision of a range of varieties.

Price wars among airlines have further expanded the benefits to passengers (Economic Insights 2012, p. 4). Expansions in international air travel have promoted growth in the whole sector globally including Australia. The attractive Asian market has promoted alliances and partnerships being forged to take advantage of the growing market. Jetstar is a low-cost carrier introduced by Qantas as a strategy of expansion. Jetstar counters the low-cost strategy employed by Virgin Blue. Air Australia Airways and Virgin Blue Holdings have also positioned themselves as low-priced options for passengers. This report analyzes the vital areas in the three carrier efforts to survive in the Australia market, and expand internationally. General and Task Environmental analysis Matrices of the companiesCompanyEnvironmental analysisQantas Airways LimitedQantas Airways Limited is engaged in the transportation of passengers.

The Qantas Group is involved in airline-related businesses besides its Jetstar and Qantas flying operations (Qantas 2011). These constitute of Airports, Qantas Engineering, Qantas Freight, Q Catering, Qantas Holiday, Qantas Defense service, and Qantas Flyer program. The main strategy of QANs is to grow profitably its flying brands, low-cost Jetstar and Qantas. Qantas seeks to develop and strengthen its leading positions in premium markets.

Jetstar looks forward to expanding locally and penetrate the leisure market internationally. QANs also possess Frequent Flyer and Freight businesses (Qantas 2011). The company’ s look term strategy is restructuring its business internationally in an effort to do away the growing losses. The strategy being used by the company is the reduction of the capital intensity of the business through entering into partnerships with certain sectors’ carriers, which are not economical.

References

Datamonitor 2010, Airlines in Australia, Datamonitor Asia Pacific, Sidney.

Economic Insights 2012, The Big Issues for 2012, CommSec.

Qantas 2011, Qantas annual report, 2011.

Reynolds, FA 2010, “Characterization of airline networks: A North American and European comparison.” Journal of Air Transport Management, Vol. 16, No. 3, pp. 109-120.

Reynolds, F A 2001, “Traffic distribution in low-cost and full-service carrier networks in the US air transportation market.” Journal of Air Transport Management, Vol. 7, No. 5, pp. 265-275.

Virgin Blue Limited 2010, Virgin Blue Limited Annual report, 2010.

Wasserman, S & Faust, K 1994, Social network analysis: Methods and applications, Cambridge University Press, Cambridge.

Wittmer, A 2011, Comparing Airline Network Structure: The case of Australia, Institute of Public service and Tourism, Unoversity of St. Gallen, Switzerland.

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