Jetstar Airways

CONCLUSION

        In short, Jetstar Airways is an Australian low cost airline. The company’s mission is to offer “all day, every day low fares to enable more people to fly to more places, more often.” Jetstar Airways in Australia is a subsidiary of the Qantas group, Australia’s biggest international and domestic airline company. The CEO of Jetstar Group is Jayne Hrdlicka meanwhile David Hall is the CEO for Jetstar Airways in Australia. Jetstar first began to venture into the international market in 2004. Additionally, Jetstar also provides a ‘price beat guarantee’. Jetstar has also developed a 10 point Customer Guarantee system.

        Jetstar has high competitive rivalry, high power of suppliers, high power of buyers, high threat of substitutes and low threat of entrant. The launching of Jetstar by Qantas may pre-empt the entry of another low-cost competitor in Australia. In Australia, there are many competitors in the airline industry such as Qantas Airways and Virgin Airlines. All these airlines almost have the similar products or services and similar strategies. Jetstar Airways has only two suppliers, Boeing and Airbus. The services provided by airline industry should be unique and interesting as well as attractive. It is easy for customers to switch to different airline company due to the services they provide. New airlines companies’ need a large capital to step into the airline industry because the amount of money and expertise needed to make one plane is costly.

        Some of the solutions for Jetstar to could do better are increase their competition in airline industry by reevaluating their mission and vision. Next, they could also reduce the risk and generate more income. Another solution is to improve their customer satisfaction. Jetstar Airways may also reduce the level of threat of substitutes from medium to low.

        The strategic planning process shows that Jetstar has a bright future. Jetstar has future plans of expanding their service internationally. They aim to have Australia’s lowest fares on all the routes it operates on. Jetstar Airways use SWOT analysis to assess their internal strengths and weaknesses, external opportunities and threats. They have to develop strategies as soon as possible in order to increase their company’s reputation and customer satisfaction. Jetstar has implemented many strategies just to achieve the objectives. Jetstar encourages customers to apply for Club Jetstar. Jetstar may use the quality improvement methods such as benchmarking and six sigma.