Analyzing the Success of Qantas Airlines: A Case Study
1Profile of Qantas
The Qantas Group has a long history in the Australian airline industry. It began its operations in 1920 as the second oldest airline in the world. Passenger and mail services started in 1920. When the Australian Government bought Qantas in 1947 to operate as the nation's flag carrier, Qantas was restricted to flying only internationally, while the domestic market was heavily regulated.
After deregulation of the industry in the early 1990's, Qantas was able to re-enter the domestic market in Australia.
Through continual restructuring and reorganisation, the Qantas Group is changing to reflect the demands of the market and keep the business profitable by generating revenue from various business areas. As well as operating the core flying business, Qantas operates a number of profitable subsidiaries to support the airline.
The core flying business of the Qantas Group includes Qantas, for the business and full service economy traveller, QantasLink, for the regional flyer, Australian Airlines, for the leisure market in Asia and Jetstar, for the low-budget traveler. Qantas operates carriers to cater for various segments in the market, rather than concentrating on one brand to appeal to many.
It has also been announced that Jetstar International will begin operations late 2006, with flights to start in major cities in Asia. This carrier will replace Australian Airlines and will extend the domestic Jetstar network in Australia (Media release, Jetstar Web site).
Qantas also operates Flying Services Businesses and airline-related businesses. The Flying Services Businesses consists of the Qantas Engineering Technical Operations and Maintenance Services (ETOMS), one of the largest aircraft engineering and maintenance organisations in Asia-Pacific (Galvin, P., & Twyonials, S., 2005). Airports and Catering are also successful subsidiaries.
Associated airline businesses include Qantas Freight, including a joint venture with Australia Post, the wholesale
The Qantas Group has a long history in the Australian airline industry. It began its operations in 1920 as the second oldest airline in the world. Passenger and mail services started in 1920. When the Australian Government bought Qantas in 1947 to operate as the nation's flag carrier, Qantas was restricted to flying only internationally, while the domestic market was heavily regulated.
After deregulation of the industry in the early 1990's, Qantas was able to re-enter the domestic market in Australia.
Through continual restructuring and reorganisation, the Qantas Group is changing to reflect the demands of the market and keep the business profitable by generating revenue from various business areas. As well as operating the core flying business, Qantas operates a number of profitable subsidiaries to support the airline.
The core flying business of the Qantas Group includes Qantas, for the business and full service economy traveller, QantasLink, for the regional flyer, Australian Airlines, for the leisure market in Asia and Jetstar, for the low-budget traveler. Qantas operates carriers to cater for various segments in the market, rather than concentrating on one brand to appeal to many.
It has also been announced that Jetstar International will begin operations late 2006, with flights to start in major cities in Asia. This carrier will replace Australian Airlines and will extend the domestic Jetstar network in Australia (Media release, Jetstar Web site).
Qantas also operates Flying Services Businesses and airline-related businesses. The Flying Services Businesses consists of the Qantas Engineering Technical Operations and Maintenance Services (ETOMS), one of the largest aircraft engineering and maintenance organisations in Asia-Pacific (Galvin, P., & Twyonials, S., 2005). Airports and Catering are also successful subsidiaries.
Associated airline businesses include Qantas Freight, including a joint venture with Australia Post, the wholesale
References: Creedy, S., 2006. Jetstar recalls Ansett 's air force. The Australian. 5 May 2006. Galvin, P., & Tywonial, S., 2005, Qantas: the high-flyer of the airline industry?, Case study 7 on the textbook website. Hall, J., 2006. Qantas to wield axe as profit slides. The Australian Financial Review 17 February 2006. Hall, J., 2006. Qantas warns its pilots of a hard landing. Australian Financial Review 16 March 2006. Hill, C.W., Jones, G.R. & Galvin, P., 2004. Strategic Management: An Integrated Approach. Milton, Qld: John Wiley & Sons Australia. Kain, J., Webb, R., 2003. Turbulent Times: Australian Airline Industry Issues 2003. Parliamentary Library. http://www.aph.gov.au/LIBRARY/pubs/rp/2002-03/03RP10.htm King Rochfort, S., 2006. Qantas rides through storm: slashed expenses help airline to cope with fuel prices. The Sydney Morning Herald 17 February 2006. Street Talk. 2006. Fly-buys: MacBank to see who wants seats. The Australian Financial Review 22 March 2006. Tourism Australia. 2006. No Leave, No Life - Australian employees stockpile 70 million days of Annual Leave http://www.tourism.australia.com/NewsCentre.asp?sub=0315&al=2226 : site last accessed 3 May 06 Virgin Blue Web site