Qantas Airways Limited SWOT Analysis

adam February 21, 2011 Aerospace & Airline 3 Comments

Qantas Airways, a national Australian airline established in 1920 is the world’s second oldest airline heading towards a century of age in 2020.

Strengths

• Along with its subsidiaries served destinies, a number of international flights include almost all the continents like Africa, Oceania, Asia, Europe and the Americas.

• Being the most oldest in age, Qantas airways is far ahead in experience, operational accountability, technology and services.

• For all classes including economy class, a luxurious entertainment system is provided along with in flight internet facility and with every seat having a LCD screen (Tayeh, 2006).

• Promising a comfortable journey, traveling by Qantas airlines is cost effective.

• A complete cabin system is provided with First class, business class, premium economy class and economy class categorization.

• A paramount commitment is assured through a proper customer charter including customer’s safety, in time departure and arrival, proper caretaking in case of any mishap and securing personal information of their customers (Smith, 2002).

• An environment friendly approach through group environment policy considering all contemporary issue regarding environment for the attainment of green planet.

• Airway team has always been working for providing every possible route that is extending day by day.

• Shows their goodwill gestures at the time of emergency in their own region or for their own people settled abroad in the course of evacuation charter.

• Qantas airways had been declared as World Skytrax Airline of the Year (for five consecutive years), Skytrax Best Airline Australia (2005, 2006, 2008), and Skytrax Best Regional Airline Australia from 2006 to 2008 for their services along with several wine design and entertainment awards.

Weaknesses

• A conservative policy is implicated while flight that children traveling unaccompanied are not allowed to sit along with male travelers, which compels the men to feel sex discriminated as females can equally be suspected for child abuse (Morrison and Winston 1997).

• Despite being the oldest among the airlines, Qantas airways had gone through one air accident in almost each decade which indicates inefficiency in technicality.

• Due to environmental constraints, some long route direct flights are often delayed.

Opportunities

• Proper policies are launched for regular flyers by points earning through any type of activity that includes money spending, either through hotel staying, credit card usage, car rentals, dining and much more. Members are also given different types of bounties time to time. Growing point’s increases customer value from silver, gold to platinum.

• Leases has been announced for new aircraft fleet to cater more passengers, employment opportunities, services efficiencies and extending flying business.

• For promoting businessmen access to world with no trouble a club has been organized for uninterrupted and luxurious travel with priority check in and certain business related and personal facilities. Subscription can be made from one to several years (George, 1982).

Threats

• Strong response to global fuel price increase, by approximately half doubling the ticket on nearly 10% increase in fuel prices that has recently been noticed.

• Certain attempts of extortion have been made that had an adverse effect on airline reputation but now they are almost sorted.

• Qantas has been accused in 2006 and had been proved guilty for price fixing. They had to pay they were fined a huge deal of money, if this happens in future will prove a dire threat to airline reputation.

References

1. George S. Yip (1982). Gateways to Entry; Harvard Business Review 60 (September–October 1982): 85–93. McGraw-Hill Companies

2. Morrison S. and Winston C. (1997). The fare skies: air transportation and Middle America, Brookings Fall

3. Smith, M. J. (2002). the airline encyclopedia, 1909-2000. Scarecrow Press

4. Tayeh, T. (2006). The View From Dubai: a speech by Senior Vice President Planning, international and Industry Affairs Emirates Airline; Euro control report (May 20th)

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