Jetstar Case Study: Virgin Blue Airlines

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Register to read the introduction… The competition in the airline industry takes the form of association rivalry as well as individual airlines competing in markets where Jetstar is at hand. As mentioned, Jetstar was established by Qantas in response to introduction of another no-frills airline, Virgin Blue Airlines, so it was inevitable that they would soon be challenged by a novel addition to the low-cost airline industry. Tiger airlines were introduced in 2004 and now intend to take over Jetstar’s main Melbourne-Sydney route by planning to ‘increase daily return flights between melb-syd from four to nine’ (Platt 2009). Tiger airlines’ introduction has inescapably threatened Jetstar’s future revenue, so much so that Qantas chief executive Alan Joyce said that "Jetstar was seeing that, so to be competitive at the leisure end we believed Jetstar needed to have direct Melbourne Tullamarine to Sydney services complementing its Avalon operations, assuring that profitable market stays with the group and it's not lost to our low-cost competitors” (Creedy …show more content…
* Their successful reputation crowned them ‘best low-cost carrier’ at the Skytrax World Airline Awards (World Airline Awards 2009). * Furthermore, Jetstar became the chief sponsor of the NRL team, the Gold Coast Titans and not long later it was named the official carrier of the Australian NRL team. * Jetstar has kept to their advertising promises of Jetstar is "All day every day low fares" and "Low Fares, Good Times" by continuing to provide low fares. * Jetstar Airways operates with only 3 types of fleet. (Jetstar Airways 2009) * Staff members are multi-skilled which means efficient workforce. * Its point-to-point model ensures lower unit cost and encourages the utilization of the aircrafts’ entirety. * In order to keep fares low, Jetstar has a buy on board in all domestic routes offering food and beverages for purchase (Clitheroe 2008). * On all A330 international routes, Jetstar offers a two-class service (Jetstar Airways 2009). * Initially Jetstar Airways was limited to operating domestically, however at the close of 2005 it began to service both an broad domestic and regional network as well as global services. | Weaknesses * Jetstar has had three in-flight incidents since commencing their services. * In order to keep their fares low, Jetstar has needed to limit their budget in other departments. However this has resulted in limited staff being unable to handle an irregular situation with the lack in emergency plans.

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