Qantas was founded in Queensland in 1920 as Queensland and Northern Territory Aerial Services. It is one of the largest and oldest air hoses in the universe. Since Qantas was privatised in 1993, it has been runing on international and domestic paths. Qantas is Australia ‘s largest full service air hose transporting 28 million riders in 2011/12 on 5,050 flights per hebdomad in Australia, New Zealand, Asia, North and South America, Africa and Europe ( Qantas, 2012 ) . It is a founding member of the oneworld confederation. The Qantas Regional Airlines Group, a wholly-owned group of subordinates including QantasLink and Network Aviation, services 57 metropolitan and regional regular rider conveyance finishs across Australia and Port Moresby in Papua New Guinea, every bit good as 19 dedicated fly-in-fly-out charter finishs. Qantas has antecedently been owned by the Australian authorities. In 1993 a 25 % interest was sold to British Airways. Qantas was privatised in 1995. Although Qantas is chiefly a rider air hose, air cargo is besides an built-in portion of its nucleus concern, as is the Frequent Flyer plan. Other Qantas operations include catering, touristry and E-commerce. ( Qantas Airways Limited 2012 )

This study will try to analyze and discourse some of the selling theories Qantas has applied and what benefits it obtained strategically from using the theory in its selling scheme. To ease this, several methods will be used including a SWOT and Pestle Analysis, every bit good as a TOWS analysis.

Environmental Scan ( Industry / Market analysis )

The landscape of the Australian domestic market was everlastingly changed following the prostration of Ansett Australia in 2001. While there are presently 35 air hoses which have a current Air operator certification issued by the Civil Aviation Safety Authority ( CASA ) , the Australian domestic market truly merely has 2 major participants in it Qantas ( who owns QantasLink and Jetstar ) and Virgin.

The international market is nevertheless a batch more competitory with closer to 40 international air hoses runing through Australian international airdromes.

We Will Write a Custom Essay Specifically
For You For Only $13.90/page!

order now

This is reflected in informations provided in the Qantas one-year study for twelvemonth ended 2012 in respects to their 2011/12 Passenger Distribution, with Australian domestic travel doing up 78 % of the concern with International doing up 22 % ( Qantas Airways Limited 2012 )

PESTEL Analysis

Political factors:

Previous authorities ownership has bred a protectionist attitude of workers and brotherhoods within QANTAS ; this has led to jobs with just work Australia, because of ongoing work stoppage action from the brotherhoods.

Deregulation of the air hose industry in the 90 ‘s, and the unfastened skies policy

Carbon Tax opinion

Economic Factors:

Strikes by brotherhood and workers, give the company a bad name, which in bend influences people ‘s perceptual experience of the air hose, reduces the figure of people going with QANTAS and hence reduces turnover and net income.

Bing a public company stockholders expect a return, there has been no dividend paid in the last 3 old ages, and portion monetary values have continued to fall since late 2007 and last twelvemonth made a $ 450 million loss

SARS, Terrorism, GFC, currency cross rates ; all affect people ‘s disbursement wonts and pick of finish, be it for concern or pleasance.

The C revenue enhancement will besides impact net income,

Social Factors:

Wagess and conditions affect people ‘s willingness to work.

QANTAS continues to patronize national sporting squads, and events.

Technological factors:

Aircraft design, weather it more legroom in first / concern category or even bigger planes that allow more paying riders

Self-check-in, get oning base on balls on a nomadic phone, electronic bag tickets

Environmental Factors:

World renowned care plan, keeps planes in best working order

New planes = better fuel economic system = less emanations

New planes = less noise pollution

QANTAS has a C beginning plan

Legal Factors:

Fair work Australia determination

Publicly listed company must stay by relevant authorities, concern and revenue enhancement Torahs

Customer Analysis

The Qantas group caters to 2 clearly different markets. Qantas caters chiefly to concern travelers with some leisure riders, whereas Jetstar caters predominately to leisure travelers.

Domestic Competitor Analysis

Virgin Australia is the subordinate of the Virgin group of companies and began operation in 2000. Its original proprietor and laminitis was British man of affairs, Sir Richard Branson. The Virgin Group owns 46 per cent of Virgin Australia while Patrick Corporation acquired 50 per cent of the air hose in 2001-02.

Since the winding-up of the Ansett group in early 2002, Virgin has provided the lone existent competition for Qantas. Virgin operates chiefly on the busiest parts of the web, offering single-class, no-frills, low-priced air travel, chiefly between selected capital metropoliss and other centres. To incorporate costs, Virgin operates merely one aircraft type, a Boeing 737 jet fleet, while crew costs are minimized through work agreements which require crew to hold a comparatively broad scope of accomplishments and to execute a comparatively wide array of work undertakings. In this regard, Virgin has many of the features of the new strain of low cost air hoses emerging worldwide.

When established Virgin focused its selling attempts on riders whose travel dispositions were comparatively sensitive to do degrees but were non so concerned with travel times and service frequence consideration, such as leisure travellers. However, as its path web and service frequences have expanded, it has shown an increasing market orientation towards travellers who are more concerned about travel times and service frequences and less concerned about menu degrees, such as concern travellers.

Stakeholder analysis

In a concern context Qantas is a comparatively alone concern, given that until late it was a authorities owned administration. Up until denationalization in the 1990 ‘s, the company used to hold a monopoly on many international flight waies, with small examination over how it was doing a net income. However as air hoses around the universe became more profitable, and the Australian industry was deregulated, Qantas was necessarily turned into a listed company. During this, Qantas ‘s cost base continued to mount due in portion to its antediluvian labour construction and pay costs which day of the month back to being a authorities owned administration.

Bing a publically listed company, owned by stockholders, Qantas ‘s chief aim has to be doing a net income. Its end must be to supply a satisfactory return to stockholders, this has n’t happened in the last 3 old ages, with no divined holding been paid, and a loss of $ 244 million announced. They besides need to bring forth adequate net income in modesty to fund growing and the gaining of new aircraft. ( ‘S & A ; P downgrades Qantas ‘ 2012 )

The Qantas Airways Group has extended commercial and ownership links with a figure of regional bearers. Qantas besides has code-sharing and confederation agreements with international bearers through the one universe confederation. This is the 2nd largest of the five ‘airline confederations ‘ , or the groupings of allied air hoses that underpin the globalisation of the air hose industry Qantas besides has strong international equity links with British Air passages. Qantas Domestic is now the lone supplier of countrywide, ‘full-service ‘ scheduled air services. Qantas Airways Limited, together with its subordinate QantasLink and JetConnect, whose path web covers Oceania, the South-East Asia, East Asia, India, the United Kingdom, Germany, the United States, Canada, South Africa and other topographic points. Its international air power hubs are Sydney airdrome and Melbourne airdrome, and Qantas operates its international flights to link the Brisbane, Perth, Singapore international airdrome, Los Angeles international airdrome and London Heathrow airdrome. Its domestic air power hub is Sydney, Melbourne, Perth, Brisbane airdrome, every bit good as major metropoliss such as Adelaide, Cairns and Canberra airdromes. ( Qantas Airways Limited 2012 )

SWOT Analysis, Strengths, Weakness, Opportunities, Threats,


One of the universe ‘s most recognizable trade names

2nd oldest air hose in the universe

Employ stopping point to 36,000 people of which 95 % are based in Australia.

Australia ‘s largest Full service air hose.

Excellent safety record

Fly to 70+ finishs

Frequent circular plan


Anterior authorities ownership

High labor costs

Ongoing brotherhood differences

Publicly listed

Near monopoly on domestic paths ( 65 % market portion )

High domestic orientation


Subsidiary air hoses ( Jetstar )

Expanding international paths

Industry confederations

Joint ventures




Rising fuel costs

Carbon revenue enhancement

Environmental concerns

Rivals with lower cost base

“ Quality ” of the full service being offered

Current selling Activities

Cleavage, Target and Positioning,


– Qantas appears to provide chiefly to concern travelers ( both domestic and international ) , with offerings of first and concern category, Full service flights, and Business sofas at most airdromes.

– Jetstar nevertheless appears to provide more to the vacation traveler


– Qantas – Corporate travelers, mineworkers ( FIFO ) , those that are prepared to pay excess to acquire the place they want on the flight they want, with the flexibleness to reschedule

– Jetstar – Cheap flights to popular vacation finishs


– Qantas is positioned as a globally recognizable trade name with best in the concern safety record, offering flights to both Domestic and International finishs

– Jetstar as a domestic operator with flights into Asia

Merchandise, Place, Promotion Price ( 4Ps )


– Qantas, sells the experience of winging, Qantas nine, Frequent Flyer rank, business/ foremost category sofas at airdromes, Strategic confederations, ( new trade merely struck with Emirates )

-Jetstar, sells the vacation finish with a inexpensive flight to acquire you at that place. After all the less you spend on travel the more you can pass at the finish

Topographic point

– Qantas, has Valet parking at capital metropolis airdromes, they now have history directors and a assortment of statement options all catering to the corporate traveler. They fly to big figure of regional ( mining ) countries

– Jetstar flies to capital metropoliss and holiday finishs ( Cairns, Proserpine, Phuket, Bali, Fiji, and Auckland )


– Both use a good mix of Television, print, sponsorship, direct selling, web based selling, and individualized communicating.

Monetary value

-Qantas charges a premium, for full service ( some may reason that it ‘s non justified or warranted ) ; they besides have a high cost base

-Jetstar actively sells on the “ Cheap Flights ” mantra

TOWS Analysis

Opportunity ‘s

Subsidiary air hoses ( Jetstar )

Expanding international paths

Industry confederations

Joint ventures




Rising fuel costs

Carbon revenue enhancement


aˆ? One of the universe ‘s most recognizable trade names

aˆ? 2nd oldest air hose in the universe

aˆ? Employ stopping point to 36,000 people of which 95 % are based in Australia.

aˆ? Australia ‘s largest Full service air hose.

aˆ? Excellent safety record

aˆ? Frequent circular plan


aˆ? expand FFlyer plan to subordinate air hoses

aˆ? more code sharing on international paths

aˆ? expand confederations


Upgrade fleet to newer more fuel efficient engines

Enact C beginnings

Promote the usage of local labor

Sell the experience of full service winging


Anterior authorities ownership

High labor costs

Ongoing brotherhood differences

Publicly listed


aˆ?Share redemption to privatize

aˆ? banish brotherhood work force


aˆ? Extremist civilization alteration of work force

aˆ? need to do a net income to promote stockholder investing

Keies to Success and Critical Issues

Qantas is a alone concern given it was born from Government ownership. Sadly as is the instance with most authorities sell offs the jobs associated with authorities ownership are frequently transferred along with transportation of ownership.

For Qantas to last it needs to get down doing a net income, so it can pull investing, and in bend expand. Unfortunately with net income downgrades, no dividend payments, and a $ 250 Million loss, this is n’t traveling to go on rapidly or easy. ( ‘S & A ; P downgrades Qantas ‘ 2012 )

Extremist Change and Incremental alteration are extensively talked about in any organizational behavior text. In Qantas state of affairs incremental or evolutionary alteration has been happening since the company ‘s origin. Although possibly non rapidly plenty, and Dunphy and Stace ( 1998 ) inquiry whether alteration can be incremental? They go on to speculate that incremental alteration may non be speedy plenty to maintain gait in today ‘s concern universe. The consequence from this is normally forced Radical alteration.

On October 29, 2011 Qantas CEO Alan Joyce took the bold measure and grounded the full fleet in response to ongoing industrial differences with brotherhoods. Two yearss subsequently Fair Work Australia ( FWA ) swung into action, ending work stoppage action and giving the 2 parties 21 yearss to screen it out. ( Cooper 2012 )

Giving the going public some certainty, that there plane will be on clip and in one piece must be a top precedence to Qantas direction. To this extent I am of the sentiment that no sum of selling will assist win over the public. All the clip Qantas is allowed to keep to redeem by the Transport Workers Union ( TWU ) , they will be making irreparable harm to the trade name. An understanding was forced upon both parties by Fair Work Australia, coercing the brotherhoods back to work. ( Hurley-Smith 2012 ) TWU


I'm Niki!

Would you like to get a custom essay? How about receiving a customized one?

Check it out