...Executive Summary This report provides an analysis and evaluation of Air New Zealand. Method of analysis this report is SWOT analysis and five forces module. Other analysis includes deep investigation on company profiles. The report founds the weakness and strength in the company and examines internal and external factors that might influence the survivability of Air New Zealand. The report will explain how Air New Zealand handles the pressure from every competition they faced until today. All strategies will be discussed in evaluation section of this report. In addition to the conclusion of evaluation; this report will also answer the case studies that being related to Air New Zealand, they are: 1. Discuss how barriers to entry in the airline industry have changed in the past decade. 2. In light of such lowering of barriers, what opportunities are there for there for Air New Zealand to pursue? 3. Air New Zealand must consider different stakeholders in its pursuit of corporate strategies. Identify the key stakeholders and their concerns Introduction Air New Zealand Limited, is the national airline and flag carrier of New Zealand. Since the appointment of Ralph Norris as Managing Director and CEO of Air New Zealand in February 2002, Air New Zealand has been working on its new strategic direction. Structural changes in the marketplace made a new direction indispensable and Air NZ is now turning away from inflexible service offerings to align its route...
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...History (including Tasman Empire Airways Limited/Air New Zealand 1939-1978, New Zealand National Airways Corporation 1947-1978, and Air New Zealand 1978-on) issued February 2006 1939 During the months before the New Zealand, United Kingdom and Australian Governments reached agreement on the constitution of the new company, the Union Steam Ship Company accepted initial responsibility for the three Short S.30 Empire class flying boats which Union Airways had ordered for the Tasman service, and in August 1939, the incorporation of Tasman Empire Airways Limited (TEAL) - later to become Air New Zealand - was sufficiently advanced for ZK-AMA "Aotearoa" to fly to New Zealand. 1940 April 26: TEAL registered in Wellington as a limited liability company. Original holdings were: New Zealand Government 20%, Union Airways 19%, BOAC 38% and Qantas 23%. Chairman of Directors - Colonel N S Falla; Deputy Chairman - A E Rudder. The board reported to the Tasman Air Commission, which itself reported to the New Zealand, Australian and British Governments. April 30: Inaugural Auckland-Sydney flight ZK-AMA "Aotearoa", then weekly. First service commanded by Captain J W Burgess with 10 passengers. May 2: First return flight. August: TEAL increased the frequency of its Auckland-Sydney service to three times a fortnight. Connection was made at Auckland with Pan American Airways' San Francisco-Auckland flying-boat service. 1941 March 31: TEAL's first...
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...1.0 Introduction Air New Zealand is the dominant flagship airline in New Zealand. At present the airline more or less controls the majority of the New Zealand domestic market. The airline also operates on several global international routes. Since Ralph Norris was appointed as Managing Director and CEO of Air New Zealand in February 2002, Air New Zealand has been working on its new strategic direction. After the business transformation program, the structural changes in the marketplace made a new direction indispensable and Air New Zealand is turning to align its route and service standards to customer needs from inflexible service offerings. Meanwhile, Air New Zealand is developing from a full service airline into the direction of a value-based airline which involves lower fares and more customers. Reduced revenues (per customer) should be off- set by lower operating costs mainly achieved by simplification of product bundles and services. (Airline to put profit on menu.UBS Warburg Conference, 2003, p.11 ) The following table gives an overview of the key aspects of Air New Zealand is facing after the new strategic direction launched, as we can seen as SWOT analysis. Figure 1 SWOT analysis Strengths-Well established system and strong operational network Marketing programs.-One of the earliest members of the Star Alliance, it flying 25 domestic and 23 international destinations and covering 16 countries approached at different cities in Asia, Pacific, North America and Europe...
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...Press Release Air Pacific Announces FY2011/2012 Financial Results Turnaround Plan Delivers Profits, More Passengers, and Higher Revenue Nadi, Fiji - Air Pacific today announced its financial results for the fiscal year ended 31 March 2012 (1 April 2011 – 31 March 2012). Mr. Nalin Patel, Chairman of Air Pacific’s Board of Directors, said that Air Pacific Ltd. and Air Pacific Group both made operating profits and that Air Pacific Ltd. delivered record-breaking revenue. (Air Pacific Group includes the national airline, its wholly owned subsidiary Pacific Sun, and a 38.75% stake in the Sofitel Fiji Resort & Spa on Denarau Island). • • Air Pacific Ltd. reported an operating profit of $16.5m, compared to an operating loss of $3.7m for the previous financial year. Air Pacific Group reported an operating profit of $13.4m, compared to operating loss of $4.3m for the previous year. On a net basis, Air Pacific Ltd. reported an after tax statutory profit of $11.4m and Air Pacific Group reported an after tax statutory profit of $10.7m (versus after tax statutory profits including net income due to cancelled aircraft deliveries of $24.8m net and $25.3m respectively for FY2010/11). Air Pacific Ltd. also recorded its highest ever revenue of $645.9m, an increase of $90.5m in revenue from FY2010/2011, and an increase of $130m compared to FY2009/2010 (the year before airline restructuring and turnaround efforts began). The airline also carried 85,000 more passengers than it did the previous...
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...Strategic Management on Qantas Airway Qantas Airway Strategic Management BUSM 3125 Group Assignment 2 Jonathon Reid Sindra Hao Ming Lee – S3301727 Table of Content Executive Summary 3 Background Information 4 SWOT Analysis 5 PESTEL Framework Analysis 6 Porter’s Five Forces Analysis 9 Qantas’ Strategic Capabilities 12 VRIN Model 14 Qantas’ Value Chain 16 Qantas’ Generic Strategies 17 Conclusion 19 Reference List 20 Executive Summary This report is going to provide a fundamental analysis inboth external and internal factors that influence Qantas Airway in competing in the aviation industry. The PESTEL framework is applied to identify how issues in the political, economic, social,technological, environmental and legal environment may affect the industry within which Qantas operates. Moreover, Porter’s five forces model also helps identify the attractiveness of the airline and aviation industry related to five competitive forces: the threat of entry, the threat of substitutes, the power of buyers, the power of suppliers and the intensity of rivalry among competitors in the existing industry (Johnson, Whittington & Scholes 2011). The external analysis is essential to determine Qantas’ opportunities and threats. Whereas the internal analysis includes understanding Qantas’ resources and competences that are likely to provide sustainable competitive advantage, identifying Qantas’ competitive position using VRIN model (value, rarity, inimitability and non-substitutability)...
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...Ryan, P. 2014, 'Qantas: what's the future for the flying kangaroo?', ABC News, 16 March, viewed 20 April 2014, Qantas: What's the future for the flying kangaroo? For most ABC correspondents, boarding a Qantas 747 or perhaps more recently a Qantas A380 is often the first memory of a usually hard fought but ultimately exciting post overseas. Packing up your life in Australia, farewelling families and friends, while feeling the pressure to hit the ground running to win over critics back home, can fade temporarily in that unreal world of long haul travel - even better if your seat allocation is at the pointy end. Qantas of course was once an essential part of overseas jaunts for business and government travellers - and for many Australians, boarding the "flying kangaroo" was welcome comfort that felt like home. But as aviation has become a globalised business, badly damaged by the terrorist attacks of September 2001, Qantas like most national carriers has struggled to maintain its once iconic status. Greater competition, cheaper seats, and savvy travellers who expect more for less while venting their opinions on sites like TripAdvisor - means profit margins have narrowed. And in recent years, Qantas has been making heavy losses on its international business. Now its once lucrative domestic business is under pressure and Qantas is in a loss making war to maintain its 65 per cent market share over Australian skies. Its chief rival, Virgin Australia - which began as a cut price...
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...Qantas Airway Strategic Management BUSM 3125 Group Assignment 2 Jonathon Reid Sindra Hao Ming Lee – S3301727 Table of Content Executive Summary 3 Background Information 4 SWOT Analysis 5 PESTEL Framework Analysis 6 Porter’s Five Forces Analysis 9 Qantas’ Strategic Capabilities 12 VRIN Model 14 Qantas’ Value Chain 16 Qantas’ Generic Strategies 17 Conclusion 19 Reference List 20 Executive Summary This report is going to provide a fundamental analysis inboth external and internal factors that influence Qantas Airway in competing in the aviation industry. The PESTEL framework is applied to identify how issues in the political, economic, social,technological, environmental...
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...Friday 9 April 2010. Hawker Beechcraft 1900D, ZK-EAQ was departed from Auckland International Airport. As the aeroplane became airborne the rear cargo door opened. The crew returned and landed the aeroplane safely. There were no injuries and minor damage only to the aeroplane. So, to prevent this accident happen again in the future, a warning system will be created where it will have a special cover that will detect whether the cargo door is closed or not. Introduction On Friday 9 April 2010, Eagle 854 was a scheduled flight from Auckland International Airport to Whangarei using ZK-EAQ, a Hawker Beechcraft Corporation 1900D (Beech 1900D) aeroplane. The aeroplane was operated by Eagle Airways Limited (the operator), one of the Air New Zealand group of companies. On board the aeroplane were 10 passengers and a crew of 2 pilots.The aeroplane had earlier that morning been flown from Kerikeri to Auckland by another crew, landing at Auckland at about 0735. The crew of Eagle 854 reported for duty at 0720 and met the arriving crew as part of their flight preparation. The crew of Eagle 854 reviewed the aircraft documentation and noted an entry in the aircraft technical log that stated that the cargo door annunciator light3 remained illuminated after the door was closed. There was no associated master warning indication, so an engineer had cleared the aircraft for flight in accordance with the operator’s Dispatch Deviation Procedures Guide (DDPG) with the condition that a crew member...
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...Strategic Management Name Course Tutor Date Executive Summary These have been unstable times for the Australian airline industry. It has been faced with a marked decline in global tourism after the September 2001 terrorist attacks in the United States. Recently, there has been traffic loss which is attributed to the war in Iraq and severs acute respiratory syndrome (SARS) occurrences in parts of Canada and Asia. In addition, to this mayhem the industry has gone through main structural changes since 1990s. There were four airlines on the essential routes but currently they are two. In 2000, the local trunk routes were controlled by Ansett Australia and Qantas Airways with new competitors Impulse Airlines and Virgin Blue rising in niche market. Currently the industry has irregular two airline structures, with Qantas leading since its occupation of Impulse Airlines in 2001 and the Ansett group’s following collapse in September 2001. On the contrary, Virgin Blue is not a member of an association, its service frequencies are reserved in comparison with those of Qantas, and its local network is not as extensive as that of Qantas is dynamic. In reaction to Virgin blue success, Qantas is taking steps to expand its allocation of the budget travel market, while Virgin is now in quest of expansion past its vacation traveller position by developing its business travel market. The government is showing a liking for administrative way outs such as a certain number of local airline...
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...Alternative Fuels 3 Operations and Infrastructure 5 Evaluating Environmental Initiatives 6 Harapan Rainforest Initiative 7 Social Activities: Philanthropic 8 Social Activities: Strategic……………………………………………………………………………………………………………………9 Evaluation…………………………………………………………………………………………………………………………………………..9 Economic Sustainability 10 Conclusion 11 Works Cited 12 Appendix 12 Introduction Over its 100 year history, the airline industry has been one of the most dynamic and fastest growing industries in the world. More people than ever are flying as air travel has become more accessible and is one of the safest ways to travel. Since 2002 there has been a 61% increase in safety with just 1 accident for every 2.7 million flights. In 2011 alone, 2.8 billion people flew 3.1 trillion miles on routes out of 3,800 commercial airports. 48 million tons of cargo, worth 5.3 trillion was shipped by air, accounting for approximately one-third of world trade. The industry supports 57 million jobs and 2.2 trillion in economic activity (SIA Safety, Security & Environment Dept., 2012). However, the industry is also one of the most regulated, with many governments being owner/operators and having to supply funding. In the past 20 years that industry has started to shift to privatization which has led to increased competition and ticket pricing wars. Significant threats such as high fuel prices, environmental events, and regulations threaten the stability of the industry...
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...environment; an organisation can increase its success by adopting strategies which manipulate these factors to its advantage. A successful organisation will not only understand existing factors but also forecast change, so that it can take advantage of change within the environments in which it operates. PEST and SWOT analysis are the tools used to find out the current status and position of an organization or individual in relation to their external environment and current role. They can then be used as a basis for future planning and strategic management. PEST analysis is a concept in marketing principles. Moreover, this concept is used as a tool by companies to track the environment they’re operating in or are planning to launch a new project, product or service. PEST is a mnemonic which in its expanded form denotes P for Political, E for Economic, S for Social, T for Technological, L for Legal and E for Environmental. It gives a bird’s eye view of the whole environment from many different angles that one wants to check and keep a track of while contemplating on a certain idea/plan. A PEST analysis is often conducted prior to SWOT analysis. The data gathered in PEST analysis is used as the “external issues” in a SWOT analysis. A SWOT Analysis is a tool that identifies the strengths, weaknesses, opportunities and threats of an organization. Specifically, SWOT is a basic, straightforward model that assesses what an organization can and cannot do as well as its potential...
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...ANNUAL REPORT 2013 1. HigHligHts Fourth Quarter Full Year $ Change 55 88 (34) 54 54 54 8 0.1 pp 3.0 pp (6) 76 (0.4) pp 2.4 pp 346 (255) 214 3.1 pp $0.20 $0.03 % Change 2.5 3.5 (0.9) pp (0.6) (1.7) (1.6) (1.8) (2.3) 0.2 0.3 (0.2) (1.8) 1.1 0.3 0.2 3.0 The financial and operating highlights for Air Canada for the periods indicated are as follows. (Canadian dollars in millions, except where indicated) Financial Performance Metrics Operating revenues Operating income Non-operating expense (1) Income (loss) before income taxes and discontinued operations Net income (loss) from continuing operations Net loss from discontinued operations – Aveos Net income (loss) Adjusted net income (loss) (2) Operating margin, excluding the impact of benefit plan amendments % (3) Operating margin % EBITDAR, excluding the impact of benefit plan amendments (3) (4) EBITDAR (4) EBITDAR margin, excluding the impact of benefit plan amendments % (3) (4) EBITDAR margin % (4) Unrestricted liquidity (5) Free cash flow (6) Adjusted net debt (7) Return on invested capital ("ROIC") %(8) Diluted earnings (loss) per share Adjusted net income (loss) per share – diluted (2) Operating Statistics (9) Revenue passenger miles (millions) ("RPM") Available seat miles (millions) ("ASM") Passenger load factor % Passenger revenue per RPM (“Yield”) (cents) Passenger revenue per ASM (“RASM”) (cents) Operating revenue per ASM (cents) Operating expense per ASM (“CASM”) excluding the impact of benefit plan amendments...
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...Aviation Companies Marketing Strategies . There are various marking strategies aviation companies are making to meet the needs of the growing international business and commercial aircraft market. Global business depends on global economic performance. The world is recovering from a recession. Aviation international business is beginning to have a positive outlook as individual countries’ economies once again begin to grow, especially in emerging markets where there is a projected increase in demand for aircraft. In a globalized world, international air travel at airline and corporate level aviation is assuming a positive outlook. Aviation companies such as Boeing are aggressively marketing their products to compete with Airbus in the international arena, through rigorous global marketing strategies aimed at maintaining a leadership position in commercial aircraft sales. Especially in the medium and heavy aircraft categories. Boeing marketing strategies like other actors in the aviation industry is dependent on projections and forecasts. Boeing targets existing clients/ customer and uses marketing strategies that starts with customer oriented strategy, thereafter product oriented strategy. Included in these strategies are product pricing and advertising strategies. Customer Oriented Strategy Boeing’s main strategy is to target airplane companies by researching all of the airplanes that companies currently use; aircraft routes, capacity, economy, and suitability...
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...Management Planning The organization that I chose to evaluate the planning functions of management is Boeing. In this paper I will try to analyze the influence that legal issues, ethics, and corporate social responsibility have had on management planning and analyze at least three factors that influence the company’s strategic, tactical, operational, and contingency planning. I will try to provide examples for each of the analyzed factors. The Boeing Company has been the leading manufacturer of commercial airplanes. For over forty years, Boeing can account for about seventy-five percent of the airplanes that are produced today. Boeing supplies products and supplies to over 150 countries. It is also one of the largest United States exporters in sales of products. Boeing has more than 169,000 employees across the United States and in about 65 countries. The Boeing Company has two major businesses; the first is the Boeing Commercial Airplanes and the second being the Boeing Defense, Space and Security. Along with the support of the rest of the departments such as the Boeing Capital Corporation, this department of Boeing deals with the all-around global financial solution; Shared Services Group, which is the catch all department; Boeing Engineering, Operations & Technology which deals with all the innovating technologies. There are many legal issues that influence the Boeing Company Management because they are such a big corporation. One of the biggest issues is that the planes...
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...together since they both will receive the same advantages and disadvantages from legislation that will be passed or repealed. Whether legislation affects fuel mileage or a safety measure, they both have to abide by the laws. They would either both have to lobby separately and spend more money than if they came together and lobbied together. They also have to do this all over the world since different governments can make different laws that affect Boeing and Airbus. Another area that both Boeing and Airbus can cooperate on is using alternative fuels like bio fuels that may cost less or be more efficient. This would have to be wide spread for both companies since they would need this fuel to be offered at airports. If they come up with a new type of fuel that can make plans run better both companies get the benefit of have more fuel efficient planes or at least it will cost less for them to fuel a plane up. The third way that both Boeing and Airbus can work together is on safety. They can both improve safety for the entire industry. This benefits both companies since no one wants to see a plane crash. When the planes are safer then the public has more confidence in them and will be more likely to fly. With more people flying that means more airplanes are needed so Boeing and Airbus will have more orders. B) "Perform the five forces analysis of competitive pressures for the Airline Industry” When looking at the airline industry you look to see what the risk of entry...
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