19-OL-BIZ304: Qantas Airways Domestic Route Recommendation Report

This report, prepared for the BIZ304 Business Consulting Project, provides strategic recommendations to Qantas Airways for its 3-year domestic strategic plan, focusing on increasing market share and profitability. The report begins with an introduction to Qantas and its operating environment, followed by an industry analysis that examines key metrics and the impact of automation. A strategic analysis, including PESTLE and SWOT analyses, is conducted to assess both internal and external factors. Competitor analysis and an overview of Qantas's loyalty programs are also included. The report then proposes recommendations for new domestic routes, specifically the Alice Springs to Port Hedland and Adelaide to Broome routes, along with potential partnerships to support these routes. Resource and budget requirements are outlined, and the relationship between GDP and air traffic is considered. The report concludes with references and appendices, providing a comprehensive overview of the research and recommendations.

Business
communication

Introduction
 Research about Qantas airways is performed.
 The development of the company will be
explained.
 Various concepts and theories are used in this
process.
 Information for gaining strategic understanding
will be collected.
 All the alternate strategies for the future
development will be identified.

Industry analysis
 The aviation industry supports the tourism and
the economy of the country.
 The annual income of company in Australia is
identified to be $43.54 billion.
KEY AVIATION METRICS
Revenue $ 43.54 Billions
Profit $ 4.12 Billions
Average Wage $81,708.53
No of Businesses 1,865
Employment Growth to 2023 11.50%
Scope: Airport Operations, Domestic Airlines, International Airlines, Non-Scheduled Air
Transport

Automation of aviation
industry
 The manual processing is reduced with the
inclusion of new technologies.
 The health threats and security issues have
reduced.
 New opportunities have arisen with the
technology based approach.
 Training of the labor is provided to cope with
the changes.

Strategic analysis
 Various available approaches are used to
analyze the position of the company.
 For the external factors pestle analysis is
performed to identify the required information
from external markets.
 The SWOT analysis is undertaken and in that
all the important internal aspects have been
covered.
 The route map of the company has been taken
into consideration.

Competitors
There are several competitors available in the
market and they includes:
 Alliance airlines
 Airlines of Tasmania
 Pacific Air express
 Virgin Australia
 Sky trans
 Tiger air Australia
 Regional airlines

Loyalty programs
 Several loyalty programs are available for
Qantas.
 Membership is provided to the regular
customers in elite loyalty program.
 Partnership with car rental companies are made
who will be providing the discounted cars to
loyal customers.
 Various additional benefits are provided to the
holders of American express cards.
 New marketing policies are made for the loyal
consumers.

Areas for recommendations
Various areas are involved for which
recommendations will be made and they
include:
 Tourism trends in Australia
 Potential partnerships and population growth
 Airport growth
 Motivation for travel growth
 Identification of attractive places
 Australian demographics

Recommended routes and
partnerships
Various routes and partnerships are
recommended such as:
 New Alice spring to Port Hedland route will be
made.
 Partnership with Fortescue Mining and the
National Indigenous Australians Agency will be
made for this route.
 Adelaide-Broome route
 Cable Beach Club Resort will be partnered to
attain the target which is set.

Resource and budget
requirements
The resources and budget which will be required
for the undertaking of recommendations include:
 Physical resources
 Human resources
 The 45% of the total budget will be allocated to
labor and fuel cost.
 Remaining will be used for maintenance, airport
fees, promotions and travel agent commissions.

Relation between GDP and air
traffic

References
 Tourism Research Australia. (2018). State of
the Industry 2017-18. Retrieved from https://
www.tra.gov.au/Data-and-Research/publicati
ons
 Westnedge, E. (2017). Physical resources for
airline. Retrieved from: https://
bizfluent.com/list-6853085-physical-resource
s-airlines.html
 Tradingeconomics.com. (2019). Retrieved
from
https://tradingeconomics.com/australia/gdp-
per-capita