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. 1 Financial performance of Qantas Group
|
Items |
2010($M) |
Change ($M) |
Change (%) |
|
Underlying PBT |
377 |
175 |
46 |
|
Operating cash flow |
1351 |
431 |
32 |
|
Total revenue |
1007 |
47 |
5 |
|
Statutory Profit After Tax |
116 |
133 |
115 |
From 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 and
other 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. |
