Airlines in Australia - Strategic Analysis
A STRATEGIC ANALYSIS REPORT
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Content
1. Executive Summary 3
2. PESTEL Analysis 4
Political 4
Economic 4
Social 4
Technology 4
Legal 4
Environmental 5
3. SWOT Analysis 6
Strengths 6
Weaknesses 6
Opportunities 6
Threats 6
4. Competitive Analysis 7
a. History and competition/joint ventures 7
b. Industry size, routes, hubs and passenger numbers 9
5. Financial data 2008 14
6. Jetstar 15
New Mission Statement 15
New Value Statement 15
Strategic Objectives 15
Key Strategies 15
1. Executive Summary
In this strategic analysis report I as senior manager of Jetstar have developed PESTEL analysis, SWOT analysis, competitive analysis, created new mission and value statement for Jetstar and developed 3 strategic objectives and 2 key strategies for the next 3-5 years.
2. PESTEL Analysis
Political
• Australian government policy and legislation currently permits airlines that are 100% foreign-owned to operate domestic airline services within the country. Australian international airlines are still subject to ownership rules limiting foreign ownership to 49%.
Economic
• Recovering from economic crisis.
• The fuel price has been steadily increasing over the last years and therefore affects the profit of airline industry.
• High operating costs, including excessive government taxes and charges
• Rising costs for security.
• Low profit margins- airlines through the years have earned a net profit margin of between 1% and 2% compared to an average of 5%
• Aviation market in Australia continued to be volatile, characterized by relatively flat growth, low margins and financial pressure.
• High rivalty among competitors - Virgin Blue took about a third of the domestic market from Qantas, but Qantas fought back by launching Jetstar.
Social
• Population in Australia is a growing, but also aging. The Generation Y represents about 4.5
[pic]
Content
1. Executive Summary 3
2. PESTEL Analysis 4
Political 4
Economic 4
Social 4
Technology 4
Legal 4
Environmental 5
3. SWOT Analysis 6
Strengths 6
Weaknesses 6
Opportunities 6
Threats 6
4. Competitive Analysis 7
a. History and competition/joint ventures 7
b. Industry size, routes, hubs and passenger numbers 9
5. Financial data 2008 14
6. Jetstar 15
New Mission Statement 15
New Value Statement 15
Strategic Objectives 15
Key Strategies 15
1. Executive Summary
In this strategic analysis report I as senior manager of Jetstar have developed PESTEL analysis, SWOT analysis, competitive analysis, created new mission and value statement for Jetstar and developed 3 strategic objectives and 2 key strategies for the next 3-5 years.
2. PESTEL Analysis
Political
• Australian government policy and legislation currently permits airlines that are 100% foreign-owned to operate domestic airline services within the country. Australian international airlines are still subject to ownership rules limiting foreign ownership to 49%.
Economic
• Recovering from economic crisis.
• The fuel price has been steadily increasing over the last years and therefore affects the profit of airline industry.
• High operating costs, including excessive government taxes and charges
• Rising costs for security.
• Low profit margins- airlines through the years have earned a net profit margin of between 1% and 2% compared to an average of 5%
• Aviation market in Australia continued to be volatile, characterized by relatively flat growth, low margins and financial pressure.
• High rivalty among competitors - Virgin Blue took about a third of the domestic market from Qantas, but Qantas fought back by launching Jetstar.
Social
• Population in Australia is a growing, but also aging. The Generation Y represents about 4.5