This paper will critically analyze the background of Qantas which decided to launch Jet Star, the new low cost carrier, in 2004. Secondly, this paper will critically analyze the revenue and profit performance of Qantas’s domestic airline against its main competitor Virgin Blue in 2010, 2011, and 2012. Annual report for each organization will be used to support this statement, and also used to determine whether Qantas’s domestic airline was an acquisition of future growth potential. Thirdly, the CEO report within its annual report will be analyzed attentively. Fourthly, this essay will critically analyze Fifthly, this essay will critically analyze whether Qantas decision to introduce Jet Star in 2004 has been a strategic success by 2012 against a set of key performance indicators established prior to the introduction of Jet Star and reported in the newspapers and within Qantas annual report between 2007 and 2012.
This paragraph will provide the background of Jet Star, and also critically analyze Qantas decision to launch the low-cost airline under Jet Star brand in 2004. Jet star is the low-cost airline in Australia which is a part of Qantas group, where Qantas focuses at the premium and business market while Jet star focuses on leisure markets. Jet star aims to have the lowest fare on every route that operates among its competitors. (Ref- http://www.jetstar.com/mediacentre/facts-and-stats/jetstar-group). Whilst Virgin Blue announced the commencement in November 1999, and in 2004 it has become one of the world’s most profitable airlines with one third of Australian market (ref------ http://www.theage.com.au/articles/2004/05/21/1085120117445.html). Virgin Blue has announced their figure in 2004 which confirming that Virgin Blue campaign to gain market share from Qantas is on track. The number of Virgin Blue’s passengers has increased 45 percent, comparing to the same month in previous year. http://www.smh.com.au/articles/2004/02/24/1077594832520.html The...
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