Qantas Analysis

In: Business and Management

Submitted By qwaz
Words 683
Pages 3


Independent Auditor’s Report to the Members of Qantas Airways Limited REPORT ON THE FINANCIAL REPORT We have audited the accompanying Financial Report of Qantas Airways Limited (Qantas), which comprises the Consolidated Balance Sheet as at 30 June 2011, and Consolidated Income Statement, Consolidated Statement of Comprehensive Income, Consolidated Statement of Changes in Equity and the Consolidated Cash Flow Statement for the year ended on that date, notes 1 to 36 comprising a summary of significant accounting policies and other explanatory information and the Directors’ declaration of the Group comprising Qantas and the entities it controlled at the year’s end or from time to time during the financial year (Qantas Group). Directors’ Responsibility for the Financial Report The Directors of Qantas are responsible for the preparation of the Financial Report that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal control as the Directors determine is necessary to enable the preparation of the Financial Report that is free from material misstatement whether due to fraud or error. In note 1(A), the Directors also state, in accordance with Australian Accounting Standard AASB 101 Presentation of Financial Statements, that the Financial Statements of the Group comply with International Financial Reporting Standards. Auditor’s Responsibility Our responsibility is to express an opinion on the Financial Report based on our audit. We conducted our audit in accordance with Australian Auditing Standards. These Auditing Standards require that we comply with relevant ethical requirements relating to audit engagements and plan and perform the audit to obtain reasonable assurance whether the Financial Report is free from material misstatement. An audit involves performing…...

Similar Documents


...available to download now at Industry Analysis & Industry Trends The flight to success was turbulent over the past five years. The economic downturn of 2008-09 wiped away much of the growth achieved by the International Airlines industry in the previous two years. Industry revenue fell 2.6% in 2008-09. Since then, revenue has grown. The main reason for the upward trend has been solid growth in passenger numbers, partially due to favourable economic conditions in Australia and developing Asian countries, and partially due to record low prices. Industry revenue is expected to grow at an annualised 2.5% over the five years through 2011-12, to reach $14.9 billion. Industry Report - Industry Locations Chapter A significant proportion of industry enterprises are located in New South Wales, namely Sydney. Sydney accounts for about 46% of seat availability and 45% of all passengers on all international flights, which makes it the main hub of international travel. Sydney's Kingsford Smith airport is one of the busiest passenger airports in the Asia-Pacific region, with passenger numbers comparable to Singapore's Changi and Tokyo's Narita airports. Over the past five years, competition from other airports, including Brisbane and Melbourne, has resulted in a loss of the share of establishments. With Qantas beginning public trials of in-flight Internet on daily Airbus A380 flights from Sydney and Melbourne to......

Words: 1501 - Pages: 7


...loyal customers would love to be on the side of Qantas airplanes, and to be on their web-site and to be totally involved into this campaign, this is called the strength of the brand. Of course, the idea is not new, and it really good, that the management admitted it in the interview: “There are some analogies to what Coke did, which was a great campaign, and also Bonds, but we’ve got our own twists on that”, but it will always touch people, when the campaign is devoted to them, but not made around the brand itself. The target audience of the campaign is really big. But, also a huge segment of the participants will be teenagers and young people under 20, unable to pay for the tickets. Their aim is to get to any social event, to become popular in a class, among their friends, and it is also a big fun to use photo kiosks at Westfield shopping centres in Chatswood (July 5-8), Bondi Junction (July 12-15) and Doncaster (July 12-15) where people can get a hair and make-up ‘touch up’ and a professional photo to be used to participate in the campaign. What is the objective of people to be involved in it, if they are used to fly with another airline or he is one of those passengers, whose flight was canceled last year? I am sure, that the marketing influence on that category of potential customers should be completely different. No funny event and a promise, that you will be on the side of the plane can affect and Impress them ever. Qantas can put a deeper significance under this......

Words: 687 - Pages: 3


...Business Studies Qantas Case Study CHAPTER 4 2. Situational Analysis Swot Analysis of Qantas Strengths: • Extensive network / part of the One world alliance • Excellent airport locations and facilities • Globally recognised brand name and logo • Excellent safety record – probably the best in the world (not one death on a Qantas flight) • Operational excellence: Qantas has twice won the Cumberbatch trophy for engineering excellence. Weaknesses: • Speculation that British airways will quit its $1.3 billion stake in Qantas. • Higher labour and other operating costs than its competitors • An ongoing disputes between Qantas management and militant unions Opportunities: • For its new international budget brand, Australian Airlines • Taking advantage from the Ansett collapse by hiring new staff, expanding routes and purchasing / leasing more aircraft • Developing further E-commerce operations Threats: • Strategies of its main competitors especially Singapore Airlines and Air New Zealand (international) and Virgin Blue (domestic) • Increase in government regulations to protect its smaller rivals • Rising fuel costs • Further fall in Australian dollar • Further weakening in the international market / economy As a result of Ansett’s collapse, Qantas is currently in the growth stage domestically (with increased sales, revenue and market share) but in the decline stage......

Words: 1608 - Pages: 7

Marketing Essay About Qantas

... Unit 401 Marketing | Qantas Assignment | | | | | | | Table of Content: Subjects Page Introduction 3 Marketing Planning and Auditing 4 SWOT Analysis 5 Macro Environment 6 Micro environment 7 Marketing Research and Marketing Intelligence 8 Segmentation 9 Marketing Positioning 10 Buyer Behavior 11 References 12 Introduction: The Airline companies now a day are mainly depending on marketing to attract new customers and to maintain sustainable relationships with them by promotions, Rewards and Loyalty programs. Qantas is one of those biggest and oldest airlines in the world who managed to keep making profit out of their businesses but still need to keep this profit despite all the challenges and competitions they are facing. By Good planning, have a clear company objective and by Analysis Qantas will guarantee keeping its Group in constant level but the world is changing and buys are effected by those changes so Qantas has to keep between its eyes those variables and act based on it. Marketing Planning and Auditing: Marketing planning is a series of activities and systematic processes used after the setup the main objective for an organization and those steps guides how to achieve the organization goals. Marketing Auditing is part of marketing planning process and it is conducted in the beginning of the planning process and it continue analyzing while implementing......

Words: 2618 - Pages: 11


...INTRODUCTION Qantas is the acronym of the Queensland and Northern Territory Air Services. Qantas is the world's second oldest airline and was founded in the Queensland outback in 1920. It is Australia’s largest domestic and international airline and is recognised as one of the world's leading long distance carriers. It has pioneered services from Australia to North America and Europe. The Qantas Group today employs approximately 32,500 people and offers services across a network spanning 182 destinations in 44 countries (including those covered by codeshare partners) in Australia, Asia and the Pacific, the Americas, Europe, the Middle East and Africa. [16] The Qantas Group’s main business lies in the transportation of passengers via two complementary airline brands – Qantas and Jetstar. The Sub-divisions of the brands are shown in the figure below: In addition to the airline brands, the Qantas Group operates Qantas Frequent Flyer and Qantas Freight. The Group has additional equity interests in airline and airline-related businesses. Qantas is also a partner with Australia Post in two jointly controlled entities: Australian air Express and Star Track Express, a national road freight business. [12] The Qantas Group’s long term vision is ‘to operate the world’s best premium airline, Qantas, and the world’s best low fares carrier, Jetstar.’ [13] To achieve this, the Group is focused on five key elements: * Safety is our first priority * Right aircraft,......

Words: 4229 - Pages: 17

Qantas South Africa Expansion

...1.0 Introduction Since 1920 Qantas Airways has offering air transportation services for the general public. Qantas Airways Limited was founded in Queensland (Qantas Airways). The aim of this report is to analyse and give recommendations for Qantas Airways in order to expand their flights to South Africa. Qantas is not manufacturing any products in South Africa, they only offering transportation services by airplane in order to help people travel to South Africa easier. In order to operate effectively, Qantas needs to have a skilled workforce and an advanced information technology. They need an advanced information technology to keep their data and online system on track, also a skilled workforce because Airline Company need to have employees that understand well about how airline system works. 2.0 Political Environment 2.1 Government stability South Africa corruption ranked was recorded at 64 out of 183 countries and at 4.1 score out of 10. South Africa corruption score was increase since 2008. Corruption watch stated that in 2008 South Africa corruption score is at 4.9 and increasing to 4.7 in 2009, 4.5 in 2010 and until 4.1 in 2010, 10 is the least corrupt and 0 the most (Corruption Watch). 2.2 Government and contribution ACSA has allocated R5.2-billion to an infrastructure expansion programme for the three main airports at Johannesburg, Cape Town and Durban International, as well as at seven smaller......

Words: 1766 - Pages: 8


...$50billion. The company is currently looking to diversify and invest into Qantas airlines a company worth approximately $22billion but currently not in the best economic state, suffering substantial losses. The company budget of $500million allocated for this investment needs to be thoroughly reviewed before making any further decisions. The report looks at several factors relating to Qantas airlines and the implications and changes to these factors if Colourful Corporations decides to investment in this company. The issues which may affect this investment decisions are Qantas global strategy, staffing policy, labour union issues, outsourcing of maintenance services, global marketing and advertising strategy, use of global logistics, sustainability, foreign ownership, prospects related to financial status, share price and national sovereignty matters. Due to time constraints this report identifies 1. Qantas global strategy; 2. Global marketing and advertising strategy and 3. Sustainability as the 3 main drivers of reasoning behind the possible investment decision of Colourful Corporation.  Aim The aim of the report is to advise the CEO on the Qantas global strategy, global marketing and advertising strategy and sustainability issues relating to Qantas airlines and the implications of these changes to Colourful Corporations if the company decides to investment in this company.  Factors 1. Qantas Global Strategy The global strategy refers to expansion of......

Words: 524 - Pages: 3

The Future of Qantas

...Ryan, P. 2014, 'Qantas: what's the future for the flying kangaroo?', ABC News, 16 March, viewed 20 April 2014, Qantas: What's the future for the flying kangaroo? For most ABC correspondents, boarding a Qantas 747 or perhaps more recently a Qantas A380 is often the first memory of a usually hard fought but ultimately exciting post overseas. Packing up your life in Australia, farewelling families and friends, while feeling the pressure to hit the ground running to win over critics back home, can fade temporarily in that unreal world of long haul travel - even better if your seat allocation is at the pointy end. Qantas of course was once an essential part of overseas jaunts for business and government travellers - and for many Australians, boarding the "flying kangaroo" was welcome comfort that felt like home. But as aviation has become a globalised business, badly damaged by the terrorist attacks of September 2001, Qantas like most national carriers has struggled to maintain its once iconic status. Greater competition, cheaper seats, and savvy travellers who expect more for less while venting their opinions on sites like TripAdvisor - means profit margins have narrowed. And in recent years, Qantas has been making heavy losses on its international business. Now its once lucrative domestic business is under pressure and Qantas is in a loss making war to maintain its 65 per cent market share over Australian skies. Its chief rival, Virgin Australia - which began as a cut price...

Words: 831 - Pages: 4

Qantas Case Study

...Introduction QANTAS is operating mainly domestically and internationally in air transportation company for various types of travelling, such as leisure and business, cargo and logistics facilities as well as support operations which includes: information technology, catering, ground handling, engineering and maintenance (Qantas Annual Report, 2013). Qantas Group also has dual brand strategy. It operates under Jetstar Airline, as a subsidiary. Jetstar is operating under a low-cost business model and it competes with local market airlines, such as Virgin Australia and Tiger. As for the Qantas airlines, it is positioned as a premium full-service carrier, providing hi-end experience for business class and corporate customers. They all have a major influence on the business, its strategy and therefore its performance. This business strategy gives Qantas Group its quite unique and competitive advantage situation of having two well known companies in the superior and low fares segments at the Domestic and International markets (Qantas Annual Report, 2013). The demographics of Australia is taking optimistic atmosphere within the business with the increase of Generation Y and retiring Baby boomers. Schedules become more significant over service quality in current constantly changing business environment around the world. Also, with the rise of ecological concern, consumers are searching for eco-friendly transport methods. However,...

Words: 2349 - Pages: 10


...Qantas Airways STRATEGIC DIRECTION * Qantas Airways Limited may have won the capacity war between itself and Virgin Australia, but the cost has been considerable. The company now needs to consider drastic measures that were previously out of the question, such as selling low cost carrier Jetstar or its highly profitable loyalty programme. Much of Qantas Airways Limited’s future, however, is in the hands of the Australian Parliament, and whether or not it dismantles the 1992 Qantas Sales Act to allow majority foreign ownership. KEY FACTS Summary 1 Qantas Airways Limited : Key Facts Full name of company: | Qantas Airways Limited | | | Address:  | 10 Bourke Road, Mascot, New South Wales 2020, Australia | Tel:  | +61 (02) 9691 3636 | Fax:   | +61 (02) 9490 1888 | www:  | | Activities:  | Operator of a scheduled airline, a low cost carrier, air freight carriers and a loyalty programme | Source: Euromonitor International from Australian Stock Exchange, Qantas Annual Report Summary 2 Qantas Airways Limited: Operational Indicators | 2011 | 2012 | 2013 | | | | | Net sales  | A$14,894 million | A$15,724 million | A$15,902 million | Net profit  | A$552 million | A$95 million | A$192 million | Number of employees  | 32,490 | 33,600 | 33,265 | Source: Euromonitor International from Qantas Annual Report COMPANY BACKGROUND * Qantas is publically traded on the Australian Stock Exchange, but with limitations that were imposed on......

Words: 1498 - Pages: 6

Qantas vs. Virgin

...Executive summary 2 1. Analysis of macroeconomic and industry conditions affecting Virgin and Qantas in airline company industry. 2 2. Using Capital Asset Pricing Model to analysis two companies. 3 2.1 Risk-free interest rate 3 2.2 Market expected return 3 2.3 Beta 3 2.4 Expected return for two companies’ stocks using CAPM model 3 3. Comparative Equity Valuation – Qantas versus Virgin 4 4. Key financial ratios 5 4.1 Profitability Analysis 5 4.1.1Return on Asset (ROA) 5 4.2 Market price 5 4.2.1 Price-to-Earnings Ratio 5 4.3 Liquidity Analysis 6 4.3.1Current Ratio 6 4.4Debt and Long-term Solvency 6 4.4.1 Interest Coverage 6 4.4.2Leverage 6 4.5 overall analyses 6 5. An evaluation of firms’ strategic choices with the goal of creating shareholder value 7 6. Recommendation 7 Reference 8 Appendix 9 Executive summary Virgin and Qantas airline are two really important airlines in the aviation sector in Australia that listed on the Australian Securities Exchange. During our report, firstly, we analysis the Global and Australian macroeconomic environment, also including industry conditions affecting Virgin and Qantas in airline company industry. Secondly, a capital asset pricing model analysis is given for two companies’ stocks. Next part is the comparison of the Virgin and Qantas airline by the equity valuation. Then, there are some key financial ratios analysis of this two airline from the profitability analysis,market price,liquidity analysis and debt......

Words: 4033 - Pages: 17

Qantas Sustainability Review 2013

...The Transformation Continues QANTAS SUSTAINABILITY REVIEW 2013                             This page has been intentionally left blank   TABLE OF CONTENTS     Page Introduction Governance − − − − Corporate Governance Business Resilience Group Security Group Risk and Audit 2 4 4 9 10 11 13 15 19 22 31 38 45 49 56 57 Stakeholder Engagement Financial Safety and Health Customer People Environment Procurement Community Measures Glossary The Group Strategy, supported by environment, procurement and community strategies, underpins the identification and reporting on material items. To support the Group’s core goal of delivering sustainable returns to shareholders, areas of focus are used to measure, monitor and report on the Group’s performance. Areas of focus and measures are reviewed and updated to ensure that they remain relevant. The Group Strategy drives sustainable outcomes Governance Corporate governance is core to ensuring the creation, protection and enhancement of shareholder value. Stakeholders We are committed to communicating effectively with our stakeholders. Financial Safety and Health To be recognised as the world’s leading airline group in air, ground and people safety and health. Customers Our Customers are the core of everything we do. The Group is continually striving towards providing exceptional customer experiences. Vision We strive to build a strong viable business capable of delivering sustainable......

Words: 27168 - Pages: 109

Qantas Airways Media Strategy Analysis

... QANTAS AIRWAYS MEDIA STRATEGY ANALYSIS WITH EMPHASIS ON 1ST CLASS TARGET MARKET USING TELEVISION AS A MEDIA CHANNEL ABSTRACT This paper explores the current media advertising strategy of Qantas Airways in the recent past. The research seeks to evaluate these strategies against those used by its main competitors with a view to recommending the most suitable media campaign strategies that can be employed to maintain Qantas Airways dominance in market share in the domestic home market and increase its standing as regards the international flights market. The analysis will take into consideration certain aspects such as the main media objectives, the strategy rationale; the media class selection rationale/evaluation, budget approach, and estimated performance results with regard to the reach anticipated in the television segment. The main target of any media campaign has been identified as the first class sector and so the bulk of the concentration of this analysis is geared towards that end. Keywords: Qantas Airways, media, advertising, television QANTAS AIRWAYS MEDIA STRATEGY ANALYSIS WITH EMPHASIS ON 1ST CLASS TARGET MARKET USING TELEVISION AS A MEDIA CHANNEL Queensland and Northern Territory Aerial Services (QANTAS) Airways according the online encyclopedia, Wikipedia, dominates the Australian domestic market with a market share of 65%. This figure is corroborated by the latest January 2012 Qantas report on independent......

Words: 1247 - Pages: 5

Strategic Management on Qantas Airway

...Qantas Airway Strategic Management BUSM 3125 Group Assignment 2 Jonathon Reid Sindra Hao Ming Lee – S3301727 Table of Content Executive Summary 3 Background Information 4 SWOT Analysis 5 PESTEL Framework Analysis 6 Porter’s Five Forces Analysis 9 Qantas’ Strategic Capabilities 12 VRIN Model 14 Qantas’ Value Chain 16 Qantas’ Generic Strategies 17 Conclusion 19 Reference List 20 Executive Summary This report is going to provide a fundamental analysis inboth external and internal factors that influence Qantas Airway in competing in the aviation industry. The PESTEL framework is applied to identify how issues in the political, economic, social,technological,......

Words: 3099 - Pages: 13

Qantas Valuation

...EXECUTIVE SUMMARY This report aims to determine whether Qantas is suitable to be included in a diversified share portfolio aiming to maximise investor returns over the long term. Analysis began with a broad view of the airline industry, both international and domestic. Porter’s Five Forces framework is utilised to determine the strengths of buyers, sellers, potential entrants, competitors and substitutes. Overall the airline industry is characterised by high barriers to entry however these barriers are reducing and competition is increasing, particularly in the low-cost segment. Qantas was then examined utilising SWOT analysis to highlight the strengths, weaknesses, opportunities and threats particular to the airline. Qantas has a strong competitive position with a recognisable brand and loyal customer base through the use of the Frequent Flyer program. However, expansion into the Japanese domestic market could jeopardise future profitability. Other threats could arise from further technology failures, natural disasters and labour disputes. Accounting analysis of Qantas focused on the treatment of the Frequent Flyer program, hedging accounting and the adjustment of estimates relating to aircraft. It appears that management has applied prudent estimates which accurately reflect the financial position whilst allowing some flexibility. Discounted cash flow analysis was utilised to determine intrinsic equity and firm value. Key assumptions included the cost of equity,......

Words: 3596 - Pages: 15