Jetstar Airways Essay

Jetstar Airways is an Australia deplorable-cost p entirelybe arer wave race path base in Melbourne, Australia. It is a wholly amaze subsidiary of the Qantas radical. Qantas established Jetstar in 2003 as a response to of import competition airline Virgin Australia (formerly cognise as Virgin Blue). Despite its let loose cost, Jetstar operates an spacious municipalated cyberspace and is the valet de chambres largest long-haul low cost carrier. Jetstar operates to destinations in Asia the peaceable Ocean, with future plans of expanding their operate byout Europe.Jetstar soon offers a limited come in of connecting services without through baggage checking, and it became the first Australia airline to allow customers to select their seat upon booking. The airline, which participates in the Qantas Frequent Flyer Programme, operates a authorise of Airbus A320-family and A330 aircraft. Mission Statement Jetstars deputation is to offer all mean solar day, every day l ow cards to enable more the great unwashed to fly to more places, more a great deal (Jetstar, 2012).Company Objectives Jetstar is part of the Qantas Groups two-brand growth strategy, where Qantas competes at the premium and strain securities pains and Jetstar focuses on leisure markets. The Jetstar Group is a tax based, low fares network of airlines operating in the leisure and value based markets. Jetstar aims to obligate Australias net fares on all the driveways it operates on. Jetstar has backed its airfares with a Price Beat Guarantee. If any customers encounter a lower fare elsewhere online, provided it is on the alike day, the same route and at a within the same quantify frame, Jetstar will beat the quoted fare by 10 per penny. Slogan paltry fares, all day, everyday market Overview exposition of the market Jetstar operates in the low-cost carrier market within Australia. Their target market is the general public, who seeks cheap and accessible airfares and relief valve availability to prompt within Australia. study competitors include Virgin Australia and Tiger Airways Australia. grocery store Size Jetstar is soon the third largest domestic Australian airline (by market component) and twenty percent largest international airline (by capacity parting) dower international routes to-and-from Australia (Jetstar, 2011). Jetstar shares its parents hale competition with Australias biggest low-cost carrier Virgin Australia.Domestic travel accounts for 75% of the airline industry revenue in Australia (Taylor Woodings, 2011) Market Potential The market is currently in the decline stage. From 2007, Australian domestic air travel started with buoyant penury for air travel and high provoke prices boosted ticket prices. However, domestic airlines faced study hurdles when the global economic downturn hit. Higher unemployment and a decline in discretionary income slowed demand for air travel in Australia. In particular, business travelle rs dispense with air travel in save of teleconferences and e-mail.Demand withal weakened as Australians have started to plan travelling internationally. Market Structure The domestic flights market domiciliate be considered as an oligopoly. The 3 main companies that have the nigh market share are Virgin Australia, Jetstar and Tiger Airways Australia. Trends demographic Australia is an underpopulated country and is also an ageing. However, oer the years the numbers of migrants have been increasing.With the boost number of migrants, there will most likely be an increase in the number of domestic flights demanded since they may deficiency to visit other cities Economic Australia currently has the strongest economy in the developed world and it is expected to outperform all comers for at least the next two years, check to the International Monetary Fund (2012). The IMF also forecasts Australias unemployment rate to remain low at 5. 2 per cent in both 2012 and 2013. With the Australia having an unemployment rate of only 5. 2%, it can be assumed that mint are more likely to have surplus cash and may have plans of flying domestic, whether it be for a pass or business.Natural Australias ever-changing natural surround has had an impact on the customers, nvestors and Jetstar. Jetstar is committed to minimising its impact on the environment and has introduced various initiatives to address this important issue. On 19 September 2007, Jetstar introduced a passenger carbon paper scratch line scheme facilitated through the Australian Governments nursery Friendly initiative. Through the Carbon jump scheme, Jetstars passengers can choose to induce their journey carbon neutral by purchasing carbon trips on all domestic and international services via a seamless single step mental process at the time of booking at Jetstar. com.Jetstars Carbon Offset programme is now one of the most prospered programs in the Australian airline industry and has raised almost $600,000. About 12 per cent of all passengers booking at Jetstar. com currently choose to offset their share of flight emissions. Jetstars Carbon Offset program has proven to be especially successful on a number of domestic routes, including Sydney-Ballina Byron, which in 2008 has averaged 24 per cent of passengers booking via the web opting to carbon-offset their flight, Melbourne-Ballina Byron (20%), Adelaide-Melbourne Avalon (16%), Melbourne- Hobart (15%) and Sydney-Melbourne Avalon (14%).Our carbon offsets are purchased through Climate Friendly, who has been ranked as the number one carbon offset provider in Australia by the Carbon Offset Watch and is a mental home member of the International Carbon drop-off and Offset Alliance (ICROA). Technological engineering plays a vital role in both the airline industry. In dress to have a competitive advantage, it is need that the technology used is up to date.Jetstar is fit out its fleet of A320 and A321 aircraft with the latest sat ellite-linked navigation dodge to improve safety and on-time performance. Aircraft fitted with the system known as Required Navigation operation (RNP) can safely navigate somewhat cloud-shrouded mountains, through valleys and over high terrain when low visibility would increase the chance of flight disruptions. Air Services Australia reported those 4,200 legal proceeding of flying time and 17,300 nautical miles was rescue during 1,612 RNP assisted approaches.As a import more than 200,000 kg of jet provoke was saved and carbon emissions were reduced by 650,000 kg. The saucily navigation aid reduces the time spent circling due to bad weather, which helps passengers generate on time and cuts our fuel use. governmental/Legal Over the years the cost increase carbon tax in Australia has affected future plans of Jetstar. Maintaining and running an aircraft is bound to take on a lot of carbon dioxide. As a result Jetstar has started to reduce the measuring their carbon footpri nt by introducing new technology.