What are the advantages and disadvantages of Qantass international cooperative alliances? The Qantas Group maintained its strong

   What are the advantages and disadvantages of Qantas’s international cooperative alliances?

Transcribed Image Text:

The Qantas Group maintained its strong position in the Australian domestic market in 2016/17. Through a dual brand strategy encompassing both the Qantas brand and the Jetstar brand, Qantas continued to service the premium leisure and business market segments, while Jetstar provided low fares to millions of customers in the price- sensitive market. Between them, these two airlines have approximately 90 per cent of the domestic profit pool from two-thirds capacity share. As the Australian economy continues to transition from the resources boom, (whereby many workers were flying weekly between the major cities and regional destinations). they redirected some of their domestic capacity to service the growing tourism markets on the east coast of Australia. This has offset the Group's exposure to the resources sector in Westem Australia and Queensland, ensuring continued earnings growth while still meeting the needs of their fly-in/fly-out customers. Qantas Domestic maintained a clear lead as the airline of choice in the corporate travel market, and continues to grow in the small business and premium leisure markets. Their extensive network, on-time performance, and service earned record customer satisfaction levels, are their major internal strengths. Looking ahead, Qantas will be rolling out free, fast, inflight Wi-Fi on all domestic A330 and 737 aircraft, which will further strengthen their hold on the domestic market. On the international front, they have continued to build a more resilient and sustainable Qantas International by leveraging opportunities with key partners, including Emirates, China Eastern and American Airlines. Through transformation, they have improved their cost base, increased aircraft utilisation and redesigned our network to high- growth markets, largely in Asia. During 2016/17, Qantas prepared to welcome the first Boeing 787-9 Dreamliner to their fleet, to replace older Boeing 747 aircraft. The Dreamliner is a game-changer for Qantas International. It provides unprecedented flying range, substantial cost efficiency and unrivalled customer experience, giving them a sustainable long-term advantage. It also allows them to change the structure of their network, using Australia's long distance from major international tourist hubs to advantage. A prime example is the new Perth-London route using the Dreamliner. The 17-hour flight will be the first regular, non-stop passenger service to link Australia with Europe when it commences in March 2018. Asia remains the world's fastest growing aviation market, and is expected to be bigger than the North America and Europe markets combined by 2035. By 2030, it is estimated that two-thirds of the world's middle class will be in the Asia-Pacific region. Qantas believes they are well placed to capitalise on this growth. More than 50 per 1 The Qantas Group maintained its strong position in the Australian domestic market in 2016/17. Through a dual brand strategy encompassing both the Qantas brand and the Jetstar brand, Qantas continued to service the premium leisure and business market segments, while Jetstar provided low fares to millions of customers in the price- sensitive market. Between them, these two airlines have approximately 90 per cent of the domestic profit pool from two-thirds capacity share. As the Australian economy continues to transition from the resources boom, (whereby many workers were flying weekly between the major cities and regional destinations). they redirected some of their domestic capacity to service the growing tourism markets on the east coast of Australia. This has offset the Group's exposure to the resources sector in Westem Australia and Queensland, ensuring continued earnings growth while still meeting the needs of their fly-in/fly-out customers. Qantas Domestic maintained a clear lead as the airline of choice in the corporate travel market, and continues to grow in the small business and premium leisure markets. Their extensive network, on-time performance, and service earned record customer satisfaction levels, are their major internal strengths. Looking ahead, Qantas will be rolling out free, fast, inflight Wi-Fi on all domestic A330 and 737 aircraft, which will further strengthen their hold on the domestic market. On the international front, they have continued to build a more resilient and sustainable Qantas International by leveraging opportunities with key partners, including Emirates, China Eastern and American Airlines. Through transformation, they have improved their cost base, increased aircraft utilisation and redesigned our network to high- growth markets, largely in Asia. During 2016/17, Qantas prepared to welcome the first Boeing 787-9 Dreamliner to their fleet, to replace older Boeing 747 aircraft. The Dreamliner is a game-changer for Qantas International. It provides unprecedented flying range, substantial cost efficiency and unrivalled customer experience, giving them a sustainable long-term advantage. It also allows them to change the structure of their network, using Australia's long distance from major international tourist hubs to advantage. A prime example is the new Perth-London route using the Dreamliner. The 17-hour flight will be the first regular, non-stop passenger service to link Australia with Europe when it commences in March 2018. Asia remains the world's fastest growing aviation market, and is expected to be bigger than the North America and Europe markets combined by 2035. By 2030, it is estimated that two-thirds of the world's middle class will be in the Asia-Pacific region. Qantas believes they are well placed to capitalise on this growth. More than 50 per 1

Answer rating: 100% (QA)

Answer An international cooperative alliance is a strategic move taken by Qantas in order to capture better growth opportunities Along with several ad... View the full answer