Qantas Groups’ performance over the 2007 to 2011 period has been relatively poor mainly as a result of the global financial crisis adversely affecting the firm’s international operations. Strategically, Qantas is likely to continue to dominate the domestic airline industry with the success of Jetstar prompting expansion into the Asia Pacific region. The most significant threats facing Qantas include high fuel prices, the value of the Australian dollar and industrial action. A comprehensive financial analysis reveals that compared to other airlines, Qantas is showing strong signs of recovery despite there being inherent weaknesses in its liquidity. A review of the firm’s annual report revealed the presence of various …show more content…
The company employs approximately 32,500 people globally and owns a fleet of 254 aircraft. The flying businesses of Qantas are grouped under two major brands – Qantas and Jetstar. While Qantas brand operates Australian domestic and international flights across a broad network with four travel classes which mainly targets the premium markets. The Group’s low-fare airline, Jetstar has experienced considerably growth in recent years and operates domestic routes in Australia and New Zealand as well as international leisure markets. In the following section, a SWOT analysis is applied to access the position of Qantas in the airline industry.
Strengths: Qantas has a prolonged and highly reputable history in the airline industry and has once been considered to be the safest airline in the world. The brand image developed by Qantas has provided an assurance of quality to passengers and has been awarded a 4 star rating under Skytrax, which has allowed the business to be successful for years. The extended coverage of the renowned Qantas Frequent Flyer program has allowed passengers to be rewarded in major retailers in Australia, such as Woolworths and Optus. This can increase the switching cost of passengers and further increases their brand loyalty to Qantas. Moreover, being a member of the Oneworld alliance, Qantas has a strong network and has been exposed to many international frequently flyer programs.
Weaknesses: A number of accidents by Qantas in the last few years