External and Internal Analysis of Qantas Airways

Airline Marketing

Table of Contents
Introduction.................................................................................................................................................2
External and internal analysis of Qantas airways.........................................................................................3
Current environment................................................................................................................................5
SWOT analysis of Qantas airways limited, Australia..............................................................................6
Internal market........................................................................................................................................6
External environment..............................................................................................................................7
Strategic objective.......................................................................................................................................8
Value Drivers..........................................................................................................................................9
Action plans to achieve the value drivers..................................................................................................11
Summary...................................................................................................................................................13
Conclusion.................................................................................................................................................15
References.................................................................................................................................................16

Introduction
Qantas Airways is one of the largest airlines of Australia and the flag carrier of the developed
country. Qantas is the largest airways because of few features like international flights,
international locations and the fleet size. Qantas is the third oldest airway that was founded after
Avianca and KLM (Dwyer, et al, 2010). In May 1935, Qantas began its flights for the
international passengers. Qantas stands for “Queensland and Northern Territory Aerial services”.
Qantas is also one of the founding members of the “One world Airline Alliance” and has been
nicknamed as “The flying kangaroo”. In Winton Queensland, Australia Qantas was founded in
1920 and started its commercial operations in 1921. Primary hubs of this airline are Melbourne,
Sydney and the Brisbane airport. Perth airport and Adelaide airport are the secondary hubs of
the Qantas airline. Major airports that are mainly focused on the Qantas airways are Los Angeles
international airport, Darwin international airport, Singapore change airport and the cairns
international airport. Total destinations that are served by the Qantas airways with its services are
around 85. Fleet size of the Qantas airway is 128. Qantas’s tagline is “The spirit of Australia”.
The headquarters of this airline is situated in Mascot, Sydney, Australia. Alan Joyce, AC is the
CEO of the company and Leigh Clifford, AO is the chairperson. According to the 2017
estimates, there are around 26,150 employees are working in the Qantas airways. Another 2017
estimate shows that the net income of Qantas airways is $1.59 billion, revenue is $16.1 billion
and total assets cost around $17.2 billion (Homsombat, Lei and Fu, 2014). In march 2014,
around 65% share of the Australian domestic market were possessed by Qantas, also in the same
year, Qantas also carried around 14.9% of passengers who left or came to Australia. There are
other several subsidiary airlines, which operates under the banner of Qantas link. The major
routes of those subsidiaries are mostly some trunk routes or regional centers only within the
country. There is another subsidiary of Qantas, named as, jet connect which provides its services
between Australia and New Zealand. The Qantas, which provides international, as well as
domestic services in Australia, own a low cost airline named as a jet star. According to the
current survey, there is a total of 285 aircrafts that are operated by Qantas and its subsidiaries.
Qantas link operates around 84 aircrafts, jet star operates 71, express freighters operate five
aircrafts and three are operated by the jet connect. In 2016 Qantas, revamped ad renovated its
few aircrafts and a completely different but latest livery of the aircrafts along with introducing a
new kind of streamlined logo of the aircraft and featured a new typeface for the aircrafts (Small,

Harris and Wilson, 2008). Qantas serves their customers with the best services possible. They
provide several kinds of in- flight entertainment system for the passengers, specially installed by
keeping the needs of passengers in the mind. Different kind of cabins is there on the flights like
first class, business class, business class for international passengers, economy class and even
premium class as well. Considering the network of Qantas Airline, they are coming with many
ranges of carriers such as Jetstar, Emirates, Fiji Airways, Solomon Airlines, and many more
across the south west pacific and New Zealand with a combination of network to 11 destinations
from multiple Australian gateways. In terms of the products, they are providing domestic
economy and business flyer, international economy and premium economy flyer, international
business and international first flyer. The distribution platform of Qantas improves the
functionality of many indirect agent channels so that they can closely be aligned with the
capabilities available at qantas.com. For the purpose of customer service, they are also providing
various contact centers for any type of enquiries, customer service agents to solve issue
personally so that they can build a long-term relationship with the customers. In addition, Qantas
has a flight training system that works as a standard commitment to the customers and
government and that is why Qantas is one of the finest safety records in the world. Training is
done with the help of IT simulations, where the pilot is trained via simulation driving in many
types of the situation. These training fields also include emergency procedures, which is a very
important aspect of the aviation industry.
External and internal analysis of Qantas airways
Qantas airways limited has a mission of accomplishing the position of best airlines in the world
and gain the highest profit in the global market with the best strategies possible. The first priority
of the Qantas airways is the safety of the passengers.
External environment analysis of the Qantas airways includes some factors, which affect the
market performance of Qantas airways in several possible ways. Mainly three external
environmental factor, which affects the Qantas airways - demographic factors, technological
factors and legal factors.
Both of these factors are discussed below: