Jetstar and Its Competitive Advantage

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  • Topic: Qantas, Airline, Jetstar Airways
  • Pages : 19 (5216 words )
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  • Published : July 22, 2012
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Applied Strategic Management Report

Name : Lalithaa Letchumanan
IC Number : S8852820D
Course : International Business and Management
Batch : BMGE10906A
Lecturer : Dr Eric Kuan

Executive Summary

The following report examines the organizational environment for the Australian Airline industry with particular emphasis on the task and general environment followed by analysis and findings of Jetstar Airways business-level strategy focusing on the airline’s competitive advantage. Upon concluding the research for the task environment, the main forces shaping the Australian Airline industry was the cost of fuel, this being such a key factor because it make s up such a big bulk of the expenses incurred by airlines and the subsequent increased competition since it deregulation in the 1990’s. The main general environment factors were that of the swine flu pandemic, being that people did not want to travel unless it was absolutely necessary, Jetstar Airways competitive advantage is discussed through the use Porter’s five forces model. Both these analyses have resulted in the findings that Jetstar has succeeded in their attempt to become a market leader in the airline industry, in particular the low-cost carrier category. Although both investigations found positives and negatives about the organization, the positives adversely outweigh the negative

Chapter 1.0 – Introduction

The company i am going to talk about is Jetstar International.

Picture 1.0 – Jetstar Logo

The Jetstar Group is a network of value based carriers providing all day every day low fares across the Asia Pacific region. Jetstar Group comprises of Jetstar Australia and New Zealand operations which run Australian domestic and short/long haul international services, Jetstar Asia and Valuair operations whose partner airlines are based in Singapore supporting Jetstar’s reach into 22 Asian destinations and Jetstar Pacific which run domestic operations in Vietnam

Collectively, Jetstar Group of airlines operate more than 2400 weekly flights to 14 different countries serving 55 markets across Australia, New Zealand and the Asia Pacific Region

Jetstar Group of airlines has a total employment of 7000 people across the 3 regions.

Jetstar Group Chief Executive Officer, Bruce Buchanan is a founding executive of Jetstar

About Jetstar Asia ( Singapore )

Jetstar Asia is part of the Jetstar Group’s value based network which aims to provide all day everyday low fares to South East Asia’s most popular leisure destinations.

Jetstar Asia is a majority Singapore owned and based company. The company is managed by Newstar Holdings Pte Ltd, majorority owned by Singapore Company Westbrook Investments Pte Ltd (51%) together with Qantas Group. (49%)

Jetstar Asia operates 12 A320 aircrafts and has 2 A330 aircrafts based in Singapore. Jetstar Asia flies to 23 destinations in the Asia Pacific

Jetstar Asia Chief Executive Officer is Chong Phit Lian.

About Jetstar (New Zealand)

Jetstar first launched in New Zealand in December 2005. Jetstar New Zealand now operates 47 weekly return services from Australia to Auckland, Christchurch and Queenstown

Domestic New Zealand operations were launched in June 2009 and now represent more than 20% of the market share, with 116 weekly return domestic flights between Auckland, Christchurch, Wellington and Queenstown.

A fleet of 8 Airbus A320s based in New Zealand support Jetstar’s expanding New Zealand flying business

Jetstar Pacific (Vietnam)

Jetstar Pacific is Vietnams first value based carrier. The carrier transformed from Pacific Airlines to Jetstar Pacific in May 2008. Jetstar Pacific is held 27% by the Qantas Group, with the remaining held by Vietnamese investors including the State Capital Investment Corporation (SCIC) which is the largest shareholder. Jetstar Pacific operates 7 aircraft fleet made up of 5 Boeing 737s and 2 Airbus A320s which fly to 7...
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