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Pestel and Swot Analyses of Qantas

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case study
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  1. Company overview
  2. PESTEL Analysis
  3. SWOT Analysis

Qantas is one of the oldest and most recognized long distance airlines in the world. The company was founded in Queensland on November 16, 1920 by two veterans of the First World War: Lieutenants Wilmot Hudson and Paul McGinness (Qantas, 2008). After a long period of state ownership, and the end of domestic flight restrictions, the airline is now consolidating an increasing number of clients due to the collapse of domestic competitors, and the creation of low cost subsidiary companies. It is now the Australian ?flag carrier? airline and one of the few survivors of the turbulent aviation history of the 20th century. The corporate results for the year ended on the 30th of June 2008, confirmed the upward trend in the company profits, with a 46% increase in comparison with results of 2006/2007 (Qantas, 2008). To remain profitable with revenues totaling U$ 16.2 billion while most commercial airlines are announcing significant losses, is a substantial achievement.
Nevertheless, several concerns have arisen about the sustainability of the business in recent years. In June 2008 passenger traffic registered a growth of only 3.8% which is the lowest in 5 years (IATA, 2008). This anemic performance is a direct consequence of the global economic slowdown, and is directly affecting the performance of the tourism industry. Some analysts consider this as an appropriate time for Qantas to search for a strategic merge. Even chief Executive Officer Geoff Dixon suggested that the company is not going to be able to survive on its own. (Wai-Yin, 2008)

[...] http://www.ft.com. (Accessed 11/09/08) Fifield, Anna (2003). NZ regulator further slams Qantas/Air NZ deal. Financial Times June 2003. http://www.ft.com. (Accessed 12/09/08) Jetstar (2008). Online Booking. http://www.jetstar.com. (Accessed 16/09/08) Hollensen, Svend (2002). Marketing Management: A Relationship Approach. Prentice Hall IATA - International Air Transport Association (2008). Pressroom. Industry Times August 2008. http://www.iata.org. (Accessed 10/09/08) O'Sullivan, Matt (2008). The Age. Qantas reliability continues to fall. The Age September 2008. http://www.theage.com.au (Accessed 11/09/08) Porter, M. (1985) [...]


[...] The reliability of Qantas is being questioned due to a large number of delays in departing and arriving flights (O'Sullivan, 2008). These delays can cause adverse publicity for the airline. Asian airlines are now more interested in the Australian market. Airways like Singapore Airlines and Korean air are outlining strategies to increase their presence on the international routes to Australia. Conclusion Qantas is a consolidated airline with a captive market. It has a very high potential for growth due to the difficultly of access from Europe and North America to Australia, and to it surrounding zone in the Pacific Ocean. [...]

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