The report discuss all the crucial information on Qantas Airways Limited required for business and competitor intelligence needs and contain a study of the major internal and external factors affecting Qantas Airways in the form of SWOT and PESTEL analysis as well as a breakdown . And examination of leading product revenue streams of Qantas Airways. Data is supplemented with details on Qantas Airways history, key executives and business description, location and subsidiaries as well as a list of products, services and the latest available statements from Qantas Airways Limited. To undertake the report, primary/qualitative (Qantas Web site) and secondary/quantitative (Internet journals, reports and news) data was collected.
The oil market is going through dramatic shifts in regional demand and supply balances. In 2012 the influence of OPEC and strong demand from the Brazilian, Russian, Indian, and Chinese (BRIC) economies prevented a decline in price (IATA, 2014, p. 12). This can be seen as a major factor affecting Qantas International’s profitability. With socio political factors in Middle East and North Africa may have low potential impact on the growth of aviation business. Aviation Industry’s growth was always linked to technology.
New developments in this front are gathering pace and will continue to influence future dynamics of the industry. New trends in aircraft technology will continue to influence the delivery. Aviation Industry continues to make progress in the area of environmental protection where new aircraft models are designed to cut back emissions and to improve efficiency. On the legal front, industry continues to achieve harmonized legal framework for aviation industry.
2.Qantas International –Important Macro environmental factors
2.1 Crude Oil Prices
Aviation fuel process follows trends in crude oil prices. One of the most important macroeconomic factors affecting Qantas International Operations and profitability will be fuel prices. Looking at the latest financial statements (Fig 2) it is obvious that fuel contributes to the expenses in a large scale. Thus any changes in fuel prices are going to affect the bottom-line. As mentioned in the PEST Analysis in the previous section, crude oil prices maintained position preventing a decline in fuel oil prices.
Source: Qantas Group Annual Report 2013
Technology will be one of the important macroeconomic factors which will be driving Qantas International’s transformation. Qantas group will continue its investments in new aircraft technology, customer experience technology, training, customer service etc. Emerging technologies like New Distribution capabilities (NDC) are going to transform customer shopping experience. Technology will continue to impact following areas of the business
•Aircraft Design ( Fuel efficient designs, reduced carbon footprint)
•Customer shopping experience