Strategies for Qantas Domestic 2019-2022

This document discusses the strategies for Qantas domestic flights from 2019 to 2022 and explores how the company can increase its market share in Australia. It provides recommendations on which domestic routes the company should focus on and how they can identify, agree, and leverage innovative strategic partnerships to grow their market share. The document also includes a project communications plan and references.

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Running Head: BUSINESS CONSULTING PROJECT
Business Consulting Project
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Strategies for Qantas Domestic 2019-2022
Qantas is one of the oldest airlines in the world it is also the largest in Australia. The
history of Qantas started from a fragile plane which used to accommodate only three persons,
two passengers, and the pilot. From this stage, Qantas has developed to a scene of using an
Airbus which is capable of flying more than four hundred and fifty passengers. Qantas was first
founded on sixteenth November 1920 in wanton Queensland. Qantas was established as an
airline service for queen’s land and northern territory. The company was established by Paul Mc
Guinness and Fysh Hudson (Zealand, 2016). Later another partner joined the establishers by the
name Fergus mc master who was made the chairman of the airline. More so there was another
partner who joined the group as a mechanic by the name Arthur Baird.
In the initial sage, the company used to operate taxis, air mail delivery services as well as
joy flights. Qantas has experienced gradual growth from 1920 to date there has been different
purchases of the modernized aircrafts and improved services by the company to the customers.
Qantas has its main hubs in Sydney airport, Brisbane airport and at Melbourne airport.
Moreover, the company operates several international flights in and out of Los Angeles,
Singapore Changi, London Heathrow and in Auckland airport. Qantas as the largest and the first
airline operator in Australia serves several international as well as domestic flights. Qantas
Airways are the largest airline when we consider fleet size, international flights as well as
destinations. By the end of 2014, Qantas had gained a sixty five percent of Australian domestic
market shares. The company was ranged to have been carrying more than 14.9b percent of
passengers who were either traveling in or out of Australia (Scamps, A., & Gibbens, 2012).
Qantas airline has partnered with several airlines globally which includes American Airlines,
British Airways, Finnair, Cathy Pacific, Japan airlines among many more.

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1. Which domestic routes the company should focus on?
Currently, Qantas airline has only three domestic destinations. The market share in the
Australian domestic flight of the company is not well gained, and the company seeks to expand
the dividend by the end of 2022. The company aims to develop a comprehensive domestic
strategic plan which will enable the company to increase its market share in the country. Qantas
has its destination in the top three busiest airports in Australia. Where else there exist more than
sixty airports in Australia there is a strong market for the company to expand her market share
and also to raise more revenue as compared to the income the company is capable of increasing
from internal flights. Qantas has neglected the local market and advanced more on international
flights (Clarke, 2012). The problem with Qantas Airways is an underestimation of the potential
market in Australia. Although the company is one of the oldest and one of the largest in the
world, there is a need for the company to consider domestic flights. Although Sydney airport,
Brisbane and Melbourne airports’ are the largest and the busiest airports in the country with the
largest volume of passengers who take flights per day other busy airports and potential ones exist
in the country. The company should not underrate the passengers’ volume that travels
domestically in Australia.
Among the potential domestic routes that the company should start planning to follow is
Perth airport, this airport is found in Western Australia in Perth. The airport is one of the
potential routes that the company should think of, reasons to this recommendation are that the
airport has the capability of accommodating and flying more than eight million passengers on
their domestic flights. This shows the capacity of the airport to the company, as the company has
got a well-marketed brand name, the entrance to this new route will not face much competition.
Customers are always in search of quality services and the reliability of a company in the market.

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With the current market trends, Qantas stands a better position to convince more customers to
consider their flights being taken care of by the company. Although several giant companies
serve the airport, Qantas airline holds a better place to gain more customer confidence as
compared to the external airlines which operate in Perth domestic routes.
The second domestic route that the company should focus on is gold coast airport which
is found in the queen’s land in Townsville. This airport has the potential to offer local flights
from Queensland to other domestic destination. The airport has a capacity which can
accommodate more than a million passengers to be frightened each day. Having been in
operation for more than ninety years Qantas airline has the best trade name in Australian, and
hence more focus on domestic flights will help the company to have a well-increased market
share which will reflect the revenue the company will be raising yearly. Qantas has more
bargaining power as compared to other airline service companies (Williams, 2017). This is
because the company provides the best flight packages and also the pricing of the company is
very different as compared to others hence favoring the customers. With the knowledge of the
countries topography and all the features, Qantas airline can also be diverse her services to
offering domestic tour flights to the customers. With the development of tour package which will
be operated domestically, the company will have boosted her reputation as well as increased the
market share in the country.

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.
(Hierling, 2014).
Having been in service for more years in the top three busy airports in Australia the
company can be able to serve the customer needs of other airports which seem to be less active.
The airline business is listed as the most profitable in the country; there are more competitors
who include Emirates airways. However being a giant company for many years, not most of the
airline companies will seek to compete with Qantas. Hence this will give the company more
advantage in the airline business market domestically (Gillen & Gados, 2013). As Qantas is
ranked among the top five best-loved airline Service Company, more customers are attracted to

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enjoy the services of the company hence giving the company a more competitive advantage over
other players in the market.
Although the company has a significant marketing budget, it is not unlimited, and hence
this puts the company in a better position to market her domestic services. By performing a swot
analysis, Qantas Airways is in a better place to thrive in her local market as compared to other
companies in the nation. Qantas uses a good marketing strategy which has several mixes which
the brand can understand every group of her customer.

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(Buttery & Tamaschke, 2016).
2. How we might be able to identify, agree and leverage innovative strategic partnerships
(not other airlines) to grow our market share, or even the broader market size.
Airways should use the following procedures to identify, agree and leverage innovative
partnership to be able to grow their market share in the domestic market as well as the broader
market. As a smart company, Qantas should be able to look at partnership as one of the best
tools to gain more customers in the domestic market as well as international market. Airline
partnership for Qantas will mean that the company will be able to acquire more expertise,
customers and also smart ideas to keep the company going (Dwyer & Kim, 2013). Qantas has
failed in seeking for partnership, and hence there is a need to identify several players in the
market for the company to enjoy increased market share as well as a reduction in the marketing
capital incurred.
Generally, the partnership helps a company in the expenses that they used to use when
operating alone. Qantas should look for several players in the airline market and set a
partnership. Qantas will be able to identify potential partners in the market through a thorough
analysis of the operation of the company and to what extent the partner has marketed their brand
name. More so Qantas will be able to identify a potential partner through accessing their
financial report and comparing with the companies report. An example of a good company to
start a partnership with will be Kakandu national park. This is because as it can be well
understood, Kakandu national park is one of the best and well-known tourists site in the country
(Mules, 2013). A partnership with Kakandu national park will boost both the domestic market
share as well as the global market share of the company. I would recommend a partnership with
this company for Qantas Airways.

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Another innovative partnership that I will recommend for Qantas is the partnership with
motel 24 which has the best percentage of the market share in Australia with 38.9 percent of all
visitors and domestic accommodation. This will help the company to have a better market share
in the country hence increasing the revenue raised from domestic flights (Simons, 2016. Having
a great and better understanding of the airline business, the company will be able to maintain the
partnership for long and also grow each other to a better position in the global market. Hence
Qantas is expected to have excellent partnership leverage. Among the benefit that Qantas will be
able to get from both partnership includes; acquisition of new customers, increased revenue,
expansion of the market reach both domestically and internationally, the extension of the service
lines, accessing new trends and technology in the industry, addition of the sharing resources,
boosted operational effectiveness and finally being able to finance the operations of the
company.
Qantas airways should consider developing a well-designed partnering strategy to
improve their networks, more so, the company should use levering resources and online
networks, review the best practice in the industry as well as perform an audit before getting
themselves in a partnership. Besides, working with outsiders, researchers and consultants will
enable the company to have a better partnership which will help the company to grow the market
share as well as size.

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Project Communications Plan
Project needs
The domestic route to focus more on for Qantas Airways
Need for partnership
Need for an increase in the local market share
Need to convince and win more domestic customers
Purpose of the project
The purpose of this project is to seek consultant recommendation on the domestic routes
that Qantas should focus on. Secondly, the project aims at seeking recommendation on how the
company will seek, leverage and maintain a partnership in the industry.
Among the stakeholders involved include the partners, shareholders, the management and
the customers.
Tactics to be used includes marketing, strategic partnership and introduction of more
domestic flights packages.
Media and tools to be utilized in this project includes, television advertisement,
publications in the newspapers, flayers and also the use of audit and cash flow reports. The
communication method to be used is business letters and audit reports.

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References
Buttery, A., & Tamaschke, R. (2016). The use and development of marketing information
systems in Queensland, Australia. Marketing Intelligence & Planning, 14(3), 29-35.
Chan, K. M. (2013). Virgin Australia: Situation analysis of the ‘Game Change’strategic plan.
GRIN Verlag.
Clarke, H. (2012). Qantas versus the Industry Commission: Optimal Tariffs or X-Efïiciency?.
Dwyer, L., & Kim, C. (2013). Destination competitiveness: determinants and indicators. Current
issues in tourism, 6(5), 369-414.
Gillen, D., & Gados, A. (2013). Airlines within airlines partnership: Assessing the vulnerabilities
of mixing business models. Research in Transportation Economics, 24(1), 25-35.
Hierling, M. (2014). The Australian airline industry and the case of Qantas Airways: A strategic
analysis report. GRIN Verlag.
Mules, R. (2013). The long haul: The QANTAS-Emirates Alliance. Busidate, 21(3), 2.
Scamps, A., & Gibbens, P. (2012). Development of a flight simulator evaluation course at
QANTAS. In AIAA Modeling and Simulation Technologies Conference and Exhibit (p.
6114).
Simons, M. S. (2016). Aviation Alliances: Implications for the Qantas-Ba Alliance in the Asia
Pacific Region. J. Air L. & Com., 62, 841.
Williams, G. (2017). The airline industry and the impact of deregulation. Routledge.
Zealand, A. N. (2016).
Qantas Airways Limited (2016). Submission to the Australian Competition and Consumer
Commission in Support of the Application for Authorisation. Vol 2, 54, 875.