Essays on Situational Analysis of Qantas Airways Case Study

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The paper "Situational Analysis of Qantas Airways " is a perfect example of a marketing case study.   Qantas Airways is operated as one of the listed public Qantas group. The Airways are the national airline of Australia where its main hubs are in Melbourne and Sydney while the secondary hubs located in Brisbane and Perth. This airline operates a large domestic and international network through utilizing its large fleet of both the wide-body and narrow Airbus with services to the Americas, New Zealand, Asia, Europe and South Africa. QantasLink subsidiary provides regional services within Australia.

The market for air transport in Australia is proportionately large. It has the world’ s fourth-largest market for domestic traffic, and the world’ s seventh-largest market overall. This situation is a reflection of the vast expanse of the Australian continent, the long distances between its major cities and the lack of alternative modes of transportation. The domestic Australian market is largely concentrated around a core network of high-density routes between its major cities (Hill, & Westbrook, 1997). Australia airline industry was heavily regulated between the years the 1950s and 199s such that the domestic traffic was reserved to privately held Ansett airlines and the government-owned the Australian airlines (Song, et al 2004).

Qantas, which is also a government, owned operated internationally as Australia’ s flag-carrier. In February 1993, the government recapitalized Qantas by $1.35 billion to reduce its debt and make the company be viewed as worthy to invest by the private investors. The company was floated on the Australian stock exchange in 1995, raising $1.45 billion for the government. In parallel, the government opened up competition on international air transport.

The Ansett gained access to the Asian destinations exceeding its competition with Qantas on lucrative international routes and improving its ability to feed its domestic network with international travelers (Lindgardt, et al 2009). Qantas domestic operations comprise three complementary airlines. These airlines include the Qantas, QantasLink, and the Jetstar. The objective of the group was to maintain its combined share of the market at 65 per cent. In the year 2004, Qantas domestic flew 17.7 million passengers. The full-service airline operated the two-class flights on all its routes, offering in-flight meals and entertainment, and a network of Qantas Club airport lounges.

The international airline of the Qantas group consisted of three subsidiaries in 2004. The subsidiaries included the Qantas, Australian airline, and Jetconnect. Jetstar Asia, expected to start in December 2004 would be the fourth international airline business group. Qantas had a 31 per cent share of the international passenger traffic to and from Australia while it held favorable positions on the trans-pacific routes. Australian airline was Qantas international leisure carrier. The strategic aim was to complement the Qantas international network in the market where the main airline, with its higher cost, would not profitably operate.

Australian was targeting international holidaymakers in Australia and Asia, flying Japanese tourists to Cairns and on to the gold coast. Qantas group’ s main activities are conducting international and domestic air transportation services, selling international, providing freight services and domestic holiday tours. It also conducts associated support activities such as information technology, catering, ground handling and engineering and maintenance. The Qantas group flies to more than 150 destinations in about 40 countries. Overall, the company’ s fleet includes about 220 aircraft (Gillen, 2006).

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