Hey everyone
I have this crappy assignment on Qantas for globalisation and its so fustrating. Could anyone help me by giving reasons why Qantas expanded. I cant find them anywhere...
The
Australian Government sold the domestic carrier
Australian Airlines to Qantas in August 1992, giving it access to the national domestic market for the first time in its history.
In 1998, Qantas co-founded the
Oneworld alliance with
American Airlines,
British Airways,
Canadian Airlines, and
Cathay Pacific. The alliance commenced operation in February 1999, with
Iberia and
Finnair joining later that year. Oneworld markets itself at the premium travel market, offering passengers a larger network than the airlines could on their own. The airlines also work together to provide operational synergies to keep costs down.
The main domestic competitor to Qantas,
Ansett Australia, collapsed on 14 September 2001. Market share for Qantas immediately neared 90%, with the relatively new budget airline
Virgin Blue holding the remainder.
Virgin Blue announced a major expansion in October 2001, which was successful in eventually pushing the Qantas domestic
market share back to 60%. To prevent any further loss of market share, Qantas responded by creating a new cut-price subsidiary airline
Jetstar. This has been successful in keeping the status quo at around 65% for Qantas group and 30% for Virgin Blue with other regional airlines accounting for the rest of the market.
Qantas has stepped up the expansion of Jetstar, with the launch of international services (in addition to existing trans-
Tasman and Jetstar Asia flights) to leisure destinations such as
Bali,
Ho Chi Minh City,
Osaka and
Honolulu having begun in November 2006. On some routes (such as Sydney-Honolulu) Jetstar supplements existing Qantas operations, but many routes are new to the network. The lower cost base of Jetstar allows the previously unprofitable or marginal routes to be operated at greater profitability.
