Jetstar Airways Essay

Jetstar assembly lineways is an Australia depressive disorder-cost carrier strainingline based in Melbourne, Australia. It is a tout ensemble owned subsidiary of the Qantas Group. Qantas established Jetstar in 2003 as a retort to main competitor air passage staring(a) Australia (formerly known as Virgin Blue). Despite its low cost, Jetstar operates an extensive domestic meshing and is the worlds largest long-haul low cost carrier. Jetstar operates to destinations in Asia the Pacific Ocean, with future plans of expanding their services end-to-end Europe.Jetstar currently offers a limited consider of connecting services without through luggage checking, and it became the first Australia air lane to altogetherow customers to select their seat upon booking. The airline, which get off the groundicipates in the Qantas usual Flyer Programme, operates a fleet of Airbus A320-family and A330 aircraft. Mission Statement Jetstars perpetration is to offer all day, every day low fa res to enable more(prenominal) people to fly to more places, more often (Jetstar, 2012).Company ObjectivesJetstar is part of the Qantas Groups two-brand growth strategy, where Qantas competes at the premium and business securities industry and Jetstar focuses on leisure securities industrys. The Jetstar Group is a value based, low fares network of airlines operating in the leisure and value based merchandises. Jetstar aims to wipe out Australias lowest fares on all the routes it operates on. Jetstar has backed its airfares with a Price ram Guarantee. If any customers find a lower fare elsewhere online, provided it is on the equivalent day, the same route and at a within the same time frame, Jetstar will beat the quoted fare by 10 per cent. shibboleth Low fares, all day, everydayMarket Overview Definition of the market Jetstar operates in the low-cost carrier market within Australia. Their target market is the command public, who seeks cheap and accessible airfares and pi p availability to exit within Australia. study competitors include Virgin Australia and Tiger Airways Australia. Market Size Jetstar is currently the troika largest domestic Australian airline (by market share) and fifth largest world-wide airline (by capacity share) serving international routes to-and-from Australia (Jetstar, 2011). Jetstar shares its parents strong contestation with Australias biggest low-cost carrier Virgin Australia.Domestic voyage 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 demand for air travel and high fuel prices boosted fine prices. However, domestic airlines faced major hurdles when the global economic downswing hit. Higher unemployment and a decline in discretionary income slowed demand for air travel in Australia. In particular, business travellers abandon air travel in favour of te leconferences and e-mail.Demand also weakened as Australians have started to plan travelling internationally. Market Structure The domestic flights market dope be considered as an oligopoly. The 3 main companies that have the most market share are Virgin Australia, Jetstar and Tiger Airways Australia. Trends Demographic Australia is an underpopulated terra firma and is also an ageing. However, everywhere the years the numbers of migrants have been increasing.With the hike number of migrants, there will most likely be an increase in the number of domestic flights demanded since they may want to visit other cities economicalAustralia currently has the strongest economy in the developed world and it is expected to surmount all comers for at least the next two years, according to the external 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 alone 5. 2%, it can be assumed that people are more likely to have surplus cash and may have plans of travel domestic, whether it be for a holiday or business.Natural Australias changing natural environment 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 kinfolk 2007, Jetstar introduced a passenger Carbon number one scheme facilitated through the Australian Governments Greenhouse Friendly initiative. Through the Carbon Offset scheme, Jetstars passengers can choose to make their journey carbon indifferent(p) by purchasing carbon offsets on all domestic and international services via a seamless single step process at the time of booking at Jetstar. com.Jetstars Carbon Offset weapons platform is now one of the most successful programs in the Australian airline industry and has raised almost $600,000. About 12 per cent of all passengers booki ng at Jetstar. com currently choose to offset their share of flight emissions. Jetstars Carbon Offset program has proven to be oddly 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 temper Friendly, who has been ranked as the number one carbon offset provider in Australia by the Carbon Offset Watch and is a trigger member of the International Carbon Reduction and Offset Alliance (ICROA). technical Technology plays a vital role in both the airline industry. In order to have a competitive advantage, it is required that the technology used is up to date.Jetstar is equipping its fleet of A320 and A321 aircraft with the latest satellite-linked glide dodge to improve safety and on-time pe rformance. Aircraft fitted with the system known as Required soaring Performance (RNP) can safely navigate around 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 minutes of flying time and 17,300 nautical miles was deliver during 1,612 RNP assisted approaches.As a conduct more than 200,000 kg of grand fuel was saved and carbon emissions were reduced by 650,000 kg. The new navigation aid reduces the time spent circling due to bad weather, which helps passengers arrive on time and cuts our fuel use. Political/Legal Over the years the rising carbon tax in Australia has affected future plans of Jetstar. Maintaining and running an aircraft is determine to produce a lot of carbon dioxide. As a result Jetstar has started to reduce the amount their carbon footprint by introducing new technology.