THE QANTAS CRISIS CASE

The Qantas Crisis Case

The Qantas Crisis Case

Executive Summary

Founded in Winton, Queensland in 1920, the world's second oldest airline, Qantas, is the chief domestic and international airline of Australia. Today it is acknowledged as worlds foremost extensive distance travellers, having services provided from Australia to North America and Europe. Offering services across single system straddling over 180 destinations in more than 40 countries throughout Australia, America, Asia and the Pacific, Africa, Europe and Middle East. Qantas Group at present employs approximately 32,500 people. Qantas and Jetstar are the two corresponding airline systems being used by the Qantas Group for transportation of passengers. (Bamber, 2004, 24)

Qantas is divided into three correlated groups; the Commercial group which involves sales and circulation, Qantas Link and partners, and commercial planning; Client and Marketing which focuses on traveller's experience, qualified cabin crew, in-flight brand marketing and good quality service; and lastly The Operational Group comprising of catering, airports, engineering, operations planning and control, flight operations and Qantas Group Aviation Service. Also, Qantas low cost airline, the Jetstar airways, supervises Jetstar Asia functioning laid in Singapore. Apart from Qantas and Jetstar, the Group runs Qantas Frequent Flyer and Qantas Freight. The Qantas Group shows keen interest in the airline and correlated businesses, comprising of 27% share in Vietnam's Jetstar Pacific; 46% share of Air Pacific as well as a percentage share of the Jetset Group. (CAPA, 2002, 67)

The Qantas Group works in collaboration with Australia Post in two in cooperated companies: the Australian Air Express, which is the local air cargo operator along with Star Track Express which is the national road cargo business. Domestically, 5600 flights are operated per week that serves nearly 60 city and district locations in entire states and mainland districts (Qantas with approximately 2400 flights; Qantas Link with 2000; and Jetstar with around 1200). In addition to that Jetstar also runs more than 150 domestic flights per week in New Zealand. Globally, more than 970 flights on every week are operated (Qantas leading 630 flights; and Jetstar with 340). The Qantas' network holds 182 destinations in over 44 different countries, including Australia as well as those served by code share partner airlines. (Creedy, 2004, 45)

Introduction

The purpose of this report is to analyze and discuss some of the marketing theories applied by the Qantas Group, and the extending their benefit by applying the theory of marketing strategies. Australia includes a number of key cities, separated by long distances, for an aviation industry setup. After World War II, the Australian government adopted a "two-airline" policy, whereby the local market was mutual between the two airlines, Qantas and Ansett. Established in 1920, Qantas is now Australia's prevailing legacy holder. It has shown remarkable profits in the local and international air services and interrelated business after its privatization in the 1990s.

In 1936, Ansett was launched mainly as a domestic carrier with Virgin Blue and Impulse which followed almost 65 years later in 2000. A sudden fall in the fares was seen with ...