Jetstar is an Australian low-cost airline that is a wholty owned subsidiary of Qantas.
JetstarispartotQantas’twobrandstrategyothavingoantasAirwaysforthe
premium lull-service market and Jetstar for the low-cost market. Jeistar has
approximately 996 of the Austraiian domestic tlight share.
The airline operates an extensive domestic network as wel as regional and
international services from its main base at Melbourne A’rport although ls regional
network in northern Australia limited and tar from comprehensive. Like its Qantas
parent. Jetstar competes with Virgin Australia and its fully owned low-cost subsidiary
Tigerair Australia. Jetstar also competes vn‘th regional airlines like Regional Express.
Airnorth. Hinterland Aviation. West Wing. Pelican Airlines. Sharp Aviation and
Skippers Aviation
Jetstar management thinks the company should expand its northern regional
networks and include some charter flight facility. This would bring it into competition
with several key regional airl’nes and a local charter services. Baiore any decisions
aremadeyouareliredtoanalyselhecompetifivesimafionandgiveadvice.
-a-i
Assignment Tasks
1. Read the short Jetstar description above.
2. identity and discuss any existing competitive advantages Jetstar might
have relative to the proposed expansion.
3. Research the economic environment Jetstar might be operating within in
remote and regional Austraia. Using a PESTEL analysis review the
macro-economic environment and identify any issues you think might
impact the expansion plan. You should include justification for issues you
identify.
4. Using Porter’s five forces model identify and discuss any competitive
forces that might impact the expansion plan. You should include
justification for issues you identify.
5. Propose a business level strategy the organisation might consider for its
expansion and justify why you think it is best
