Qantas International: Analysis of the External Environment Essay examples

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Qantas International faces both direct and indirect competition, in a highly competitive, global marketplace. Direct competitors to Qantas International are those airlines that market full service international air travel, and the primary direct competitors identified in this market are Emirates and Singapore Airways.
Indirect competition in the marketplace comes from low cost airlines, and the main competitor in this market is Virgin Australia, which is jointly owned by Air New Zealand, Singapore Airways.
Market Analysis
International passenger traffic to and from Australia in December 2103 was carried by forty-eight international airlines that were in operation in that month, offering seats to over three million passengers. The number of realised passengers represents a growth of 7.8% over the number of booked seats in December 2012 (BITRE, 2014). Passenger utilisation however is on the decline, with December 2013 passenger utilisation being 80.2%, a fall from 82.4% at the same time the previous year (BITRE, 2014).
The independent aviation market analysis organisation CAPA – Centre for Aviation (CAPA) published industry wide profit margins between 2.1% and 2.9% in 2012 and 2103, however, the International Air Transport Association (IATA) forecasts that profit margins will soar on the back of cost cutting and increased demand (IATA in Fox News (, 2013).
Despite the growth in the market, Qantas International’s market share has been falling over the past 10years, from 34% in FY02 to 16% in FY13. The entry of Virgin Australia in 2000 in part explains this, however Virgin’s growth also coincided with the demise of Ansett in 2001 “… Virgin Blue will initially increase capacity on existing routes while evaluating what c...

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The Economist, (2013), “Legacy vs low-cost carriers: Spot the difference”, The Economist, (author not named)

Flynn, D., (2014), “The Qantas Sale Act explained”, Australian Business Traveller,

FOX News, (2013), “Airline profits tipped to soar in 2014, the International Air Transport Association says”

Gazzar, S.E., (2014), “Struggling Qantas reaffirms tie-up with Emirates Airline”

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