The performance analysis of qantas

Running head: PERFORMANCE ANALYSIS OF QANTAS
Performance Analysis of Qantas
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PERFORMANCE ANALYSIS OF QANTAS1
EXECUTIVE SUMMARY
This paper analyses the overall performance of the Australian airline Qantas. The performance,
background and context of the Qantas is discussed here. To get the overview of the airline
organization the below analysis will be helpful. This paper examines the demand, supply and
elasticity of the airline industry as well as Qantas. How the market structure, behaviour, cost and
production affected the airline is also discussed. The paper discusses about the growth, GDP and
macroeconomic factors which affects the performance of the company. The macroeconomic
policies that impacted the growth of the organization is examined here. There are other factors of
economics which influences the Australian airline industry and Qantas is analysed in the paper.

PERFORMANCE ANALYSIS OF QANTAS2
Table of Contents
Introduction......................................................................................................................................3
Discussion........................................................................................................................................3
Airline background, context and performance............................................................................3
Impact of supply, demand and elasticity.....................................................................................4
Impact of costs, production, market structure and behavior........................................................4
Impact of international economics, trade and exchange rates.....................................................4
Impact of macroeconomic policy, GDP and growth...................................................................4
Impact of other factors.................................................................................................................4
Conclusion.......................................................................................................................................4
Reference List..................................................................................................................................5

PERFORMANCE ANALYSIS OF QANTAS3
Introduction
In order to provide transportation to both freight and passengers the Australian domestic
airline industry operates aircrafts within Australia on scheduled routes. The key economic factors
which affects the airline industry are increase or decrease in demand and supply of air travel,
consumer sentiment about the service and the change in crude oil price. Qantas is the major
player in the Australian market as it provide low cost airline for domestic and international
flights. The subsidiary of Qantas Jetstar also offer low cost flights (Homsombat, Lei and Fu
2014). There are many economic drivers which affects the performance of the flag carrier of
Australia Qantas. To assess the performance and position of Qantas in the industry drivers such
as demand, supply, cost, production, market structure, trade, exchange rates, growth, GDP and
macroeconomic policies are discussed. The carrier of Australia focuses on the use of advance
technology and quality of service to attract more customers (Sarina and Wright 2015). The
growth of the industry helped the Australian airline to earn more profits. Existing competitors in
the market influence the growth of the industry as well as the Qantas. The intense price
competition between Virgin and Qantas airlines lower the profit level comparatively. There is
barriers to entry in the industry due to high competition.
Discussion
Airline background, context and performance
The largest airline of Australia by international flights, fleet size and international
destination is Qantas Airways Limited. The flag carrier of Australia, Qantas founded in
November, 1920. The third largest airline of the world founded after KLM and Avianca
(Mohammadian et al. 2019). The headquarters of Qantas are situated at Mascot, Sydney, and