Situational Analysis Report about Jetstar Airways Essay

Situational Analysis Report about Jetstar Airways - Essay Example It has continued to expand, opening new routes every now and then. Its dominance in Australia is apparent. Nonetheless, Jetstar Airways has on several instances been accused of discrimination against persons with disability and poor employee relations. However, Jetstar Airways is not immune to competition. It has faces stiff competition form other low-cost airlines such as Virgin Blue and Tiger Airways. This report therefore provides an extensive analysis of Jetstar Airlines with regards to its market situation, product situation, distribution situation and competitive situation. Also, using the SWOT analysis, the report gives a brief summary of Jetstar’s strengths, weaknesses, opportunities and threats, and finally an analysis of two main issues that the airline has created as a plan for market strategy. In this regards, the identified issues are: desire to expand and enhancing employee relations. Product overview Jetstar Airways specializes in providing a low-fares network o f airlines that operate in the leisure as well as value based markets. In Australia, Jetstar operates across 17 domestic destinations. Its mission is to provide all day, every day low fares to enable more people to fly more often (Jetstar.com). Indeed, it is palpable that Jetstar Airways has been committed to its mission as it continues to offer the lowest air fares in Australia as compared to its major competitors. Due to its amazingly low-cost services, a Jetstar airway has been crowned a myriad of awards. For instance in 2009 and 2011, it was ranked the best low-cost airline in Australia by Skytrax. In 2007 and 2008, it was awarded the Low-cost Carrier of the Year (CAPA), among many others. It is credited for being the first Australian airline to allow its passengers an opportunity to select their seats when booking for a flight (Jestar.com). With specific reference to pricing, Jetstar offers exceptionally low prices for fights. The airline operates over fifty airbuses of various sizes, majority being Airbus A320. Currently for instance, the charges from Sydney to Brisbane is $ 79, Sydney to Cairns is $139, Sydney to Hobart is $ 99 whereas from Sydney to Adelaide is $ 100.Despite this amazingly low prices, Jetstar still affords incredible margins. For instance, as per the six month ended 31st, 2011, Jetstar Airways recorded an unaudited earnings of $1,565 Million in terms of total revenue and other incomes. This was an increased from the previous $1,346 million reported in the previous year (Jetstar.com). With regards to competition, Jetstar Airline veneers s stiff competition from two major airlines in Australia. The most eminent competitor is Virgin Blue Airways which commands about 31 percent of the domestic flights in Australia. It operates 2,100 flights in a week with 68 modern aircrafts. Virgin Blues Airline provides very competitive prices. For instance, whereas Jetstar charges about $100, for a flight form Sydney to Adelaide, Virgin Blue charged $12 0 for the same flight. As a fact, Jetstar was established as a response to the threat posed by Virgin Blue. The other major competitor is Tiger Airways. Based in Singapore, Tiger Airways was launched in 2007 to provide low cost airlines as well. It tends to charge lower prices compared to Jetstar. For instance, the price of a flight form Sydney to Adelaide is $49, to Melbourne is $29 whereas to Gold Coast is $39. SWOT analysis At this juncture, it is important to