Qantas Airline industry Case Study analysis
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Industry and External Environment
Qantas is one of the few airlines in the world that is consistently profitable, a status even more rare among legacy carriers. The airline business is characterized by intense competition, a perishable product, high fixed costs and high regulation. As such, it is a difficult environment in which to operate. A PEST analysis can be used to examine the external forces that affect both the industry as a whole and Qantas in particular
The political environment is stable, but challenging due to a high degree of regulation. The current maintenance troubles have already brought additional scrutiny from two different agencies. However, the government also helps Qantas, because of the airlines strategic importance to the transportation network. Competition is somewhat limited, for example. Also, the Australian government has an impact in the current situation because of their distinct anti-union stance. The Australian government recently introduced their new version of the Work Choices legislation package. The new version contains several anti-labor provisions that weaken the power of unions in Australia, under the auspices of national economic competitiveness. (Head, 2008)......
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