Qantas Strategy

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Qantas Aggressive New Strategy
Alejandro Trujillo BA 514 April 26, 2012

2 Table of Contents

Introduction .................................................................................................................................... 3 Qantas Group structure .................................................................................................................. 4 Expansion Into Asian Market ......................................................................................................... 5 Jetstar Japan ....................................................................................................................... 6 Jetstar Hong Kong ............................................................................................................. 6 New Premium Asian Airline .............................................................................................. 7 Fleet Renovation Plan .................................................................................................................... 7 A320 ................................................................................................................................... 7 Boeing 787 ......................................................................................................................... 8 Airbus A380 ....................................................................................................................... 8 Qantas - Premium Airline .............................................................................................................. 9 Conclusion ................................................................................................................................... 10 References .................................................................................................................................... 11

3 Introduction Australia is a vast country with unforgiving terrain. This was a fact recognized by two former war pilots Wilmot Hudson Fysh and Paul McGinness, who knew that the only efficient way to connect their country was to fly across it. So after securing enough financial backing, they created the Queensland and Northern Territory Aerial Services, or Qantas, in 1920. Another easily recognizable fact is how far Australia is from everything else, so the newly formed airline quickly expanded into international service, flying to Singapore by 1935. Having Australia’s geographical characteristics on their side, complemented by the strong will of its founders and financial support, the airline quickly expanded becoming not only the predominant airline in its country, but more importantly, a symbol for Australia all over the world. The airplanes with the kangaroo painted prominently on their fuselages became widely recognized around the world and provided an unequivocal message about their origin. Qantas has been successful at positioning themselves as a business and premium leisure travel airline for many years, however due to the changing market conditions, high fuel prices, increased domestic and international competition, and a difficult relationship with its unionized workers, the airline is going through one of its most challenging times in decades. Despite reporting a profit of AU$249 million after taxes for the year ending on June 30, 2011 (Qantas Annual Report, 2011), current Qantas CEO Alan Joyce has decided to face these challenges aggressively (too aggressive for some), and has laid out a plan that covers a wide range of initiatives such as a strong expansion into the Asian market, fleet renovation, reinforcing the Qantas brand as a premium airline, and the not uncommon airline industry practice of job cuts. The purpose of this research paper will be to explain and analyze each one of the aforementioned core areas of Joyce’s plan, by dividing it in the following sections: Qantas Group structure, expansion into Asian market, fleet renovation plan and...
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