Pastle analysis of Qantas airlines presentation

1. PESTLE Analysis
of
Qantas Airline

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CONTENT
 Introduction
 About Qantas Airline
 What is PESTLE anaysis ?
 PESTLE analysis
 Summary and Discussion

3. About
QNTAS
ALIRLINE
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 Qantas Airways is the flag
carrier of Australia and its
largest airline by fleet size,
international flights and
international destinations.
 Qantas airways is the largest
domestic and international
airline of Australia.
 Having been founded in
November 1920
 The Qantas name comes from
"QANTAS", an acronym for
its original name,
"Queensland and Northern
Territory Aerial Services", and
it is nicknamed "The Flying
Kangaroo«.
 Qantas is a founding member
of the Oneworld airline
alliance.
 It is the third oldest airline in
the world, after KLM and
Avianca.
This airline has significant share in the market in Australia and it is getting people due to various
services at the ground and in the air. The airline has made many strategic alliances with various other
international airlines and it got the facilities in other countries, where it operates.

4. What is PESTEL
Analysis ?
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5. “
A PESTEL analysis is a framework or tool used by marketers
to analyse and monitor the macro-environmental (external
marketing environment) factors that have an impact on an
organisation. The result of which is used to identify threats
and weaknesses which is used in a SWOT analysis.
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6. PESTEL
stands
for?
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7. Political factors play a significant role in
determining the factors that can impact Qantas
Airways Limited's long term profitability in a
certain country or market. Qantas Airways
Limited is operating in Transportation in more
than dozen countries and expose itself to
different types of political environment and
political system risks. The achieve success in
such a dynamic Transportation industry across
various countries is to diversify the systematic
risks of political environment. Qantas Airways
Limited can closely analyze the following
factors before entering or investing in a certain
market-
Political Factors that
Impact Qantas Airways
Limited
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8. Warm relations with China have
translated into an “open aviation
market”: Australian and China have
signed an open skies pact in 2016 which will
remove all capacity restrictions between the
two countries and will also result in opening
up of new routes. The previous cap before the
removal was restricted to around 67,000 seats
each week. Further 2017 has also been
declared as Australia-China Year of Tourism'.
However, the open sky policy with China will
increase competition in the market and hurt
the market share of domestic players like
Qantas.
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Government support to Qantas important
in the cyclical airline industry: Qantas got
more freedom in the form of amendment to
Qantas Sale Act, which allowed it to bring in
outside shareholders while maintaining the main
restriction of 49 per cent on foreign ownership.

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The Macro environment factors such as – inflation rate,
savings rate, interest rate, foreign exchange rate and
economic cycle determine the aggregate demand and
aggregate investment in an economy. While micro
environment factors such as competition norms impact the
competitive advantage of the firm. Qantas Airways Limited
can use country’s economic factor such as growth rate,
inflation & industry’s economic indicators such as
Transportation industry growth rate, consumer spending etc
to forecast the growth trajectory of not only sector but also
that of the organization. Economic factors that Qantas
Airways Limited should consider while conducting
PESTEL analysis are -
Economic Factors that
Impact Qantas Airways
Limited

11. Due to some financial
crisis, the Qantas airline has
to face some problems in
continuing its flight
operations. The company
faced the economic
downturn in its business
activities and its business
was badly suffered due to
excessive spending in some
areas
(Live Paper Help, 2012)
1. Liberal aviation policy by
the Australian government
has hurt the growth
prospects of domestic
airlines.
2. Declining oil prices have
increased profitability but
volatility remains a concern
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12. Social
Factors
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Society’s culture and way of doing things impact
the culture of an organization in an environment.
Shared beliefs and attitudes of the population play a
great role in marketers There are some social
factors, which show that Australian population has
developed their social norms and they enjoy
traveling with this airline to get the good standard
of services, which is offered to the passengers. It is
providing the services to the clients and gets their
support while operating its flights at the ground and
in the air.
1. Being Australia’s national carrier, it enjoys wide
public trust, support and local customer base.
2. Domestic partnerships in Australia to boost Qantas
customer base.

13. Technological Factors13
Qantas Airline has inducted various new airplanes in its fleet and now these aircraft has
boosted the business of this airline. The technology has made significant developments in
different sectors and now the passengers can get booked their flights online and they can also
get their check in online so they do not need to wait for the airline for long time. The IT
development in different fields has shown its progress (Moore, 2009).
The airline has made excellent technological developments in different sectors and it is
getting the positive achievements in the technological sector. Now the flight schedule,
booking of tickets and other services relating to Qantas Airline are now providing on the
internet and they can do different activities online so that they can save their time and there is
no hassle on the airport while taking seat in the airplanes (Live Paper Help,2012).
The introduction of new IT technology has raised the business of this airline and it has
raised the expectations of the passengers. This airline uses high technology products and
services and the new airplanes have the capability to fly between the two continents without
taking a break (UK Essays, 2016).

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1. Investments in technology and innovation will
be critical to success
2. Wi-Fi and Stan streaming in Qantas flights to
enrich customer experience
Place your screenshot here

15. Environ
mental
Factors
Different markets have different norms or environmental standarts
which can impact the profitability of an organization in those markets. Even
within a country often states can have different environmental laws and
liability laws.
The countries make different rules and regulations for the protection of
environment and the Qantas Airline has to follow these regulations. Qantas
Airline is not wasting their used fuel according to the rules and regulations
protecting the environment, so there are some concerns and government has
asked to adhere with the environmental regulation as their wastes can cause
pollution in the air. Now the airline has to follow the environment
protection regulation in order to avoid pollution and it has to decrease the
emission of fuel (UK Essays, 2016).
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1. Jet fuel contributes to more than 95% of Qantas’ overall
emissions

16. Legal
Factors
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It is necessary for the airlines to follow the legal aspects of the countries and
airline industry. The airline has taken steps in maintaining the health and security
rues for their customers and employees. The passengers can get the excellent
food and other facilities and there is no smoking allowed in the airline, and this
step is taken for the health of other passengers
The airline has to bear the carbon tax due to its performance and the airline has to
follow this rule strictly to adhere with the legal position of the airline industry.
The airline also has to follow various other legal formalities to run their activities
smoothly (Moore, 2009).
Repeal of Carbon tax by the government: The repeal of Carbon tax
by the Australian government has helped in the increase the margins of
aviation players like Qantas. In fact the government's repeal of the
carbon tax was a major factor which helped Qantas to return to
profitability. According to the government, though the tax helped to
combat climate change, it penalized legitimate businesses.

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Prepared by Esra KURTULUŞ

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