Comparative Financial Analysis of Qantas Airlines and Virgin Airlines

This report analyzes the financial performance of Qantas and Virgin Airlines, focusing on their strategic initiatives and outcomes. It examines their adoption of innovative value chain activities in response to economic changes and complex business factors. The report details Qantas Airlines' use of cyber computing and digital marketing, its strategic alliances, and its turnover growth. It also explores Virgin Airlines' focus on providing competitive fares and luxurious services, its product differentiation strategies, and its online models. The report highlights key findings, including the increased turnover and profitability of both airlines, and concludes by forecasting future trends and acknowledging competitive threats within the airline industry. The analysis is supported by relevant references to provide a comprehensive overview of the airlines' performance.

RUNNING HEAD: Analysis of Companies 1
Analysis of Companies

Analysis of Companies 2
Introduction
This report reflects the key understanding on the financial performance of two companies
named Qantas airlines and Virgin airline. With the increasing ramification of economic change
and complex business factors these companies have adopted innovative and creative value chain
activities for the betterment of client’s satisfaction.

Analysis of Companies 3
Present description of organization
Qantas Airlines company
Qantas Airlines company is indulged in providing flag carrier airlines services and
having headquarter in Australia. This company has international flights and international
destination to provide best quality of services to its clients. It has several subsidiaries such as Jet
star Airways, Jaconet and Qantas link. In addition to this, company has core competency to
provide cheapest fair flights to its clients for the betterment of their satisfaction. This company
has adopted cyber computing digital marketing system for promoting its airlines on international
level. Qantas Airlines company has also increased its overall turnover by 20% in 2016 as
compared to average last five year data (Shaffer, Mills, and Helms Mills, 2017). This has
reflected that company has establish strong brand image of international level and establish
effective level of quality chain for the betterment of client’s satisfactions. Qantas Airlines
company has several strategic alliance in which online air packages and tours operation are
managed. Qantas Airlines company entered into strategic alliance with TUI for attracting more
clients to travel in their airlines.
Virgin airlines company
It is an American company which founded in 2004 and started its business operation on
international level. This company is having headquarter in Burlingame, California. Virgin
airlines company has core competency to provide cheapest fair flights and luxurious services by
entering into strategic alliance with other organization to its clients for the betterment of their
satisfaction. However, company has more than 100 flights around the globe which is operating

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with a view to increase the overall satisfaction of clients. This company has various strategic
alliance with other organizations so that it could provide complete package to its clients. In
addition to this, Virgin airlines company has offered various small and big packages with
attractive offers to its clients. The main current offer given by Virgin airlines company is related
to online combo for new clients (Francis, et al. 2016). The main product differentiation strategy
implemented by Virgin airlines company is accompanied with the development of app and other
portals which could be used by clients to book their tour packages and flights through online
portals. Promo codes are the most attractive offer given by Virgin airlines company to its clients
for booking their flights online. Organization structure of company is associated with the online
models and enterprises resources planning which allows its employees and customers to
community online without any manual problems. Cyber competing system of Virgin airlines
company also helps in resolving client’s booking problems in easy and systematic manner.
Company has increased its overall turnover by 25% as compared to last five year average data.
Profit earning capacity of Virgin airlines company is also increased by 19% at the same time
(Homsombat, Lei, and Fu, 2014).
Recommendation/ conclusion
Qantas Airlines company has increased its overall turnover by 20% and also implemented
cyber computing enterprises resource planning. There are several finding about the Qantas
Airlines company (Alamdari and Fagan, 2015).
 Company has increased its overall turnover as compared to last year data.
 It has adopted cyber computing system to promote online booking for better
satisfaction of clients.

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 Company has increased number of flights around the globe.
 Company has created strong brand image in the market.
Virgin airlines company
There are several finding about the Virgin airlines company which are given as below
 Development of app and online portal will reduce the complexity of business.
 Virgin airlines company has established strong brand image in the international market
 Company has increased its overall turnover 25% as compared to last five year average
data.
 Profit earning capacity of Virgin airlines company is also increased by 19% at the same
time.
 Online portal and developed app will be used by clients to book orders.
Forecasting
Virgin airlines company and Qantas Airlines company both have adopted sophisticated
business channel of enterprises resource planning and cyber computing system. This will
increase the overall client’s satisfaction and booking airlines through online portals. These will
help both companies to increase their overall turnover an international brand. This newly
adopted strategic plan will help both companies to increase their overall profit and turnover in
determined approach. However, other rivals in airlines industry are posing high amount of
threats to Qantas Airlines company and Virgin Airlines (Barros, and Couto, 2013).

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References
Alamdari, F. and Fagan, S., 2015. Impact of the adherence to the original low‐cost model on the
profitability of low‐cost airlines. Transport Reviews, 25(3), pp.377-392.
Barros, C.P. and Couto, E., 2013. Productivity analysis of European airlines, 2000–
2011. Journal of Air Transport Management, 31, pp.11-13.
Francis, G., Humphreys, I., Ison, S. and Aicken, M., 2016. Where next for low cost airlines? A
spatial and temporal comparative study. Journal of Transport Geography, 14(2), pp.83-94.
Homsombat, W., Lei, Z. and Fu, X., 2014. Competitive effects of the airlines-within-airlines
strategy–Pricing and route entry patterns. Transportation Research Part E: Logistics and
Transportation Review, 63, pp.1-16.
Shaffner, E., Mills, A.J. and Helms Mills, J.C., 2017. Reading Qantas History: Discourses of
Intersectionality and the Early Years of Qantas. In Insights and Research on the Study of Gender
and Intersectionality in International Airline Cultures (pp. 445-469). Emerald Publishing
Limited.

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