Australian Airlines, Qantas, is the second oldest airline in the world (Qantas Airways Limited, 2010). Qantas is founded in the Queensland in the year of 1920; it is the largest domestic and international airline in Australia, and which is considered as one of the long distance carriers leading the world. Qantas has advanced services from Australia to North America, Europe and Asia. Today, Qantas Group has more than three thousand employees and offers services across a network of 182 destinations in 44 countries. Qantas has three groups which are closely related (Qantas Airways Limited, 2010). They are Commercial group, Customer and Marketing group, and Operations group. The Commercial group contains sales, distribution, business planning, Qantas link and alliances, etc. Customer and Marketing group comprises customer experience part, cabin crew, in flight services and marketing. The Operations group has engineering, airports, catering, flight operations, operations planning and control and Qantas Aviation Services.
The objective of this report is to analyze Qantas business strategy in the airline industry. The material data is limited from 2010 to 2012. The analysis includes both external analysis and internal analysis. The strategies analysis from three levels: Business level, corporate level and international level.
It is always difficult for new entrants to the airline industry because most of the resources have been already occupied by existing airlines. To summarize, the external environment consists general environments, industry environments and competitive environment. The general environment is often referred to as the macro-environment. The industry environment is competitive. The bargaining power of the supplier is high, but low in customers. Railways maybe the one threat airline in short distance, but cannot replace airline industry complete. The competition among existing airline companies is very fierce. Qantas is an old state-owned joint-stock company which has good customer base as well as plenty of tangible. The core capabilities of Qantas are airline transportation and cargo. From internal analysis, airlines transportation is competitive and profitable. After analyze the SWOT of Qantas, strategies are proposed from business, cooperation and international level.