澳航集团的角色分析The Analysis of Qantas Group's Role
1.0 Executive summary 执行摘要随着航空业的发展，全球的航空公司都面临着前所未有的激烈竞争。With the development of the aviation industry, global airlines are facing unprecedented competition. Qantas Group as an airline for 90 years, according to the annual report for 2011, its financial situation is still optimistic despite having a loss of natural disasters and international routes. This strong financial performance is closely related to its business portfolio strategy. The main purpose of this report is to analyze the role of Qantas Group.（本报告的主要目的是分析澳航集团的作用。） Firstly, there is a series of analyses on the split of the market between Qantas and Jetstar. Then, it will give some comparisons between the full-service and low-cost airline of Qantas and Jetstar. After that, we will be aware of the real reason of Qantas Group's market segmentation and its success.
2.0 Introduction 简介澳航集团于1920年11月16日建立在澳大利亚昆士兰州，被称为当时昆士兰州和北航空服务有限公司。Qantas Group is built on November 16 in 1920 in Queensland, Australia, which was called Queensland and North Aviation Services Limited at that time. The company stock was listed on securities trading markets in 1995 and become one of the founding members of the international airlines coalition One World in 1999. Qantas Group is the largest and the oldest airlines in Australia, is also one of the world's oldest airlines in civil aviation industry. Its headquarters is located in Sydney and hub airport is Sydney Airport and Melbourne Airport. The route of Qantas Group operated international flights connecting many famous airports, such as Brisbane, Perth, Singapore Changi International Airport, Los Angeles International Airport and London Heathrow Airport（澳航集团经营的这条路线连接许多著名的机场，如布里斯班，珀斯，新加坡樟宜国际机场，洛杉矶国际机场和伦敦希思罗机场的国际航班。）. The route network of Qantas Airways, together with its subsidiaries, Qantas Link, Jet Connect has covered Oceania, and extended to Southeast Asia, East Asia, the United Kingdom, Germany, the United States, Canada and South Africa. Today, Qantas Group has become a powerful brand in Australia even in the world's leading long distance airlines.
3.0 The role of Qantas Group 澳航集团的作用The aviation business of the Qantas Group mainly including Qantas (limited liability company, operating international and domestic route), Qantas Link, Jetstar Airways (low-cost airlines), Jetstar Asia and other aviation-related business.Qantas Group was established in 1920, which is one of the world's most experienced and respected airlines. With the outstanding reputation of reliable, secure, advanced technology and full customer service, Qantas Group becomes the symbol of the aviation industry. The main business of the Qantas Group is the transportation of passengers. Qantas and Jetstar mainly operate international, domestic and regional services. Other Group's broader portfolio of business and investments, such as the Qantas Frequent Flyer and Qantas Freight Enterprises, they all have different sources of income and add much value to their customers and investors. They are not only severed the Australian community, but also connect Australia to the world and gives people deep experience and nice enjoyment.As we all known, aviation industry is very vulnerable to a series of factors, especially for the global airline, often will be affected by natural disasters, political turbulence and the competitor's countermeasures. In the year of 2011, Qantas Group has faced a series of natural disasters and weather events. Such as flooding and Cyclone Yasi in Queensland, earthquake and tsunami in Japan, Christchurch earthquake and a volcano's ash cloud. All these events cost the Group 224 million dollars. Otherwise, there exists fierce market competition in full-service aviation as well as the low-cost airline in recent years, it also facing more fierce challenges from strong competitors. Although with a complex and challenging global operating environment, from the Annual Report for 2011 of Qantas Group, we can see that Qantas Group still achieved a strong result in finance (Michele McDonald, 2012), which provides a classic example for the international aviation. Tab.1FinancialperformanceofQantasGroup
Items2010($M)Change($M)Change(%)UnderlyingPBT37717546Operatingcashflow135143132Totalrevenue1007475StatutoryProfitAfterTax116133115From the table, the Qantas Group reported an Underlying Profit Before Tax of 552 million dollars for the year ended 30 June 2011, up 46 percent on the prior year result of $377 million. Its total revenue also has an increase of 5 percent and Statutory Profit After Tax up 115 per cent to $249 million (Qantas, 2011). Owing to the advanced crisis management skills and excellent corporate image to deal with a lot of events, Qantas Group achieved great financial results despite $224 million loss of disasters and significant losses in Qantas International.
4.0 The split of markets between the Qantas and Jetstar 澳航和捷星航空之间的市场分割The reasons of market split市场分割的原因There is a fierce competition pattern in the aviation market. According to the classification of the global airline alliance, Qantas Group represents the full-service aviation and as a member of the One World, Qantas is facing strong competition from the other two alliance airlines in both domestic and international markets. Many airlines in the Asia-Pacific region in Star Alliance and Sky Team have been involved in the Australian market and internal competitors from the One World also should not be underestimated, for example, the British Airways, Cathay Pacific, Japan Airlines also have multiple routes to Australia (Eric Pels, 2008). Otherwise, Etihad Airways of Middle East, Qatar Airways, Emirates also joined the competition in the market.Virgin Blue Airlines was established in 2000 and quickly occupied some low-end market share in Australia. With the threat of strong competition from other major low-cost overseas aviation company, Qantas Group began to change and adjust their business strategy by building two brands the Qantas and Jetstar, to pay more attention to market segmentation in order to maintain its leading position in the Australian aviation market (Brian Graham & Timothy, 2006). Then, Jetstar was established in 2003 and become a strong low-cost airline's brand of Qantas to deal with the circumstance. In addition, Jetstar Asia Airways was established in Singapore in 2004 as well as to strengthen the competitiveness of the international routes, beginning to directly compete with Tiger Airways, the booming Air Asia andother budget airlines.High-end market of Qantas澳航高端市场Qantas Airways is Australia's main airlines of Qantas Group, and its profitability continuously keeps in the first place of the local Australian airlines. In Australia, Qantas Airways is positioned on the business and high-end markets. High-end travelers refer to the passenger groups who can bring in huge profits for the airline, including two cabin passengers (First and Business Class passengers) and the true sense of the frequent flyer. To these travelers with high positions and income, only the conversion of spatial location far from being able to meet their needs, they always expect more personalized services, such as the feeling of convenient, fast, comfortable and distinguished. So they are not sensitive to the fares but more care about the time and the quality of service. In 2011, Qantas launched direct flights from Sydney to Dallas and Fort Worth, creating a new gateway into North America for Australians based on a solid partnership with American Airlines. Qantas's strategy on high-end market is successful. For the year 2011, Qantas Airlines recorded Underlying Earnings Before Interest and Tax is 228 million dollars, increased 240 percent compared with 67 million in the prior year.#p#分页标题#e#Jetstar's low-cost market捷星的低成本市场Jetstar is a cost effective, cheap fare airline wholly owned by Qantas Group, its headquarter is located in Melbourne, Australia and Jetstar Asia is located in Singapore. Jetstar mainly focuses on leisure travelers and price-sensitive customers such as the working class. Time is not so important to these customers and they are more likely to choose low price airlines (De Roos et al., 2010). So Jetstar use low-cost strategy to occupy the market. Now Jetstar becomes one of the leading pan-Asian low-cost carriers, providing both short and long-haul services in Australia, New Zealand, Singapore and Vietnam. Especially in international transport routes, Jetstar has been showing a trend beyond Singapore Airlines and Air New Zealand and revealing an advantageous position.The performance of Qantas and JetstarSuch a complementary market positioning of Qantas Group accurately satisfied the needs of different travelers, so that the two airlines have achieved a good performance in the fierce market. Due to the successful operation of the marketing and business strategy, aircraft of Qantas and Jetstar increased and the traffic and profitability have been in a leading position in the Australian domestic airline. Here is the detailed information: Tab. 2 Aircraft in service of Qantas and Jetstar
2011Number2010NumberChangeQantas20719116Jetstar17159121. Jetstar fleet includes Jetstar Asia and excludes Jetstar Pacific.From table 2, we can know that the aircraft number of Qantas and Jetstar are all increased (Qantas, 2011), which means that Qantas and Jetstar are intended to expand their market and improve their competitiveness in the passenger capacity. Tab. 3 Underlying EBIT of Qantas and Jetstar 2011($M)2010($M)Change($M)Change(%)Qantas22867161240Jetstar1691313829From table 3, the operating segments Qantas and Jetstar have improved contributions to Underlying EBIT, expressing strong growth compared to the prior year and demonstrating the advantage of Qantas Group's portfolio of brands.
5.0 Comparisons between the full service and low cost airline 全面的服务和低成本航空公司之间的比较Qantas and Jetstar are all owned by Qantas Group, there are similar in some aspect such as on behalf of customers. While they focused on different market segment so they also have much difference in their service and price.Safety first cultureA safety-first culture is the Qantas Group's first priority. From the report we can know that in order to ensure the risks are identified and was responded swiftly, the Group invested hundreds of million dollars into training. The safety of customers and employees is the most important thing to Qantas Group. So Qantas Airways has a great safety record and is internationally recognized as one of the safest airlines in the world. According to statistics, accident never happened since running jet and it became a symbol of the security and reliable airline for almost 90 years. Being a subsidiary of Qantas Group, Jetstar is also influenced by this culture and place safety on the first place.Full-service of Qantas Airline 澳航航空公司的全套服务Qantas offering services across a wide network of destinations, it is a full-service domestic and international airline in Australia. Full-service is a series of services include considering customers' schedule, their feelings of comfortable and being respected (Barrett, 2004). Qantas can be a great example in full-service airline and all-round considered customers' interests including a global network to offer aircraft type and route, good in-flight services and other services. For example, customers can buy the ticket and choose seat online, in airport they can use self-service technology (Ciliberto & Williams, 2010), which makes their check-in faster and smarter in all major cities and some regional airport. In the domestic market, Qantas always has a superior on-time performance. In addition, Qantas offers high quality of in-flight food, wine and entertainment and gives passengers comfort, warmth and harmony atmosphere in the whole journey as much as possible.Low-cost of Jetstar Airline低成本捷星航空Jetstar is the Group's low-fares airline, in 2004 it began operating domestic services, in 2006 operating the international services, and in 2009 the New Zealand domestic services. The Jetstar Asia is also managed, operating the Asia to/from Singapore. Except these businesses, Jetstar brand also has influence on Jetstar Pacific.For the development of its presence in Asia, Buchanan believes that the success of low-cost airline in the Asian market requires three conditions: competitive costs, a strong brand to suit the local market and a flight network providing right products and services. Jetstar has excellent performance in these three areas. The precise market segmentation and positioning, as well as supporting product design are Jetstar's strong cornerstone. Otherwise, Jetstar gets the strong support of Qantas in information resources, such as the online ticketing and check-in services, which can save some operating costs. In addition to providing meals to business class passengers on international routes, any economy class passengers on the plane should spend the meal costs. By pursuing simplicity, efficiency, productivity and high utilization of assets, Jetstar can offer the low fares and be so successful (Graham Francis et al., 2006). In 2011, Jetstar achieved a record Underlying EBIT of $169 million, up 29 per cent on the prior year.
6.0 Conclusion （总结）In conclusion, the Qantas Group has a strong full-year profit in 2011 despite facing the intense domestic and international competitive challenges. Qantas Group is one of the world's most experienced and respected airlines and its business portfolio is successful. It can be seen from Qantas and Jetstar. Qantas focus on high-end market and provide full-service while Jetstar focus on low cost market and provide low-cost fares, but both of them achieved good results and become the models in full-service and low-cost airlines.