Case Study on Swissair And Qantas Airlines

Presenters

No.

Shweta Meshram

M1027

Kapil Nalang

M1030

Nikhil Palan

M1033

Summary of Swissair Summary of Qantas Differentiation between Qantas & Swissair airline SWOT Analysis of Swissair SWOT Analysis of Qantas PESTEL Questions and answers

Swissair is the national carrier of Switzerland. Switzerland as a major financial center was linked strongly with success of its prestigious Airline. 1992 Swiss rejected membership of the EU. Thereby denying the country the benefits of being a member of a mach larger organization.

Qantas was for many year the flag carrier for Australia on the international routes. Australia stood at one extreme of the regulation spectrum; routes, schedules and price being controlled. The regulation was indented to guarantee a profit and the government stood ready in bad time. Average flight haul of well over 4,000 km.

Swissair
1) 2000 a bad year 2) Partners problems 3) An overambitious growth strategy 4) Increase the costs 5) Loss making partners

Qantas
1) A relatively good - 2000 2) Strong partners 3) 4) Low costs 5) Profitable & Strong partners

Strength Swissair is the national carrier of Switzerland. Switzerland as a major financial center was linked strongly with success of its prestigious Airline.

Weakness Greater competition. Debt problems.

Opportunity New strategies purchasing existing airlines

Threats Increased cost Partners weakness Crisis of global economy Rising in oil price Appreciating currency

Strength Strong partners Low cost

Weakness Government restriction Labour cost was much higher

Opportunity Strong hold on Australian domestic market, with a target 70%. Extending its domestic routes from Australia to other part of region. The image of new airlines was poor Threats Strong competition on the international routes. Many third airline enters in the domestic markets.

In 1992 swiss rejected the membership of EU. Auissies stood at extreme of the regulation spectrum. Government stood ready in bad times to bear any losses In 1998 the swiss airline was more than 20% government owned Swiss Government changed the strategy and name of the airline . Swiss international airlines. The $3 billion new capital was raised. 30% of that owned by swiss government.

In 1990s sabena the belgian airline had loss of $1 millon Swissair expanded its capacity , buying into other other national airline In 2000 swissair moved from small profit to significant loss $3 billion was was invested in other airline Passenger number was falling because of the slowing world economy . Economy fell dramatically after 9/11 Increase in crude oil price Salary of pilot reduces in 2003

Quantas kept its debt to equity ratio close to 1 . Quantas was affected badly on its domestic market Quantas main domestic competitor Ansett went into bankruptcy because on 9/11 In oct 2001 Quantas raise $450 million by an equity. Quantas has trouble controlling its labour and airport costs

Average flight haul of well over 4000 km for quantas . Which in turn explains its low average cost per passenger km. Quantas had maintained an excellent record for safety. The airlines increased the price 2001 by a large amount Some of the airlines had to shut down because of bankrupt The long average haul on Quantas routes has helped to keep its costs per passenger km at a low level. 9/11 made dramatically impact on passenger.

They changed from boing to airbus

Environment
Impact

of 9/11 on global environment Effect on global market share

Swissair Competitors have appeared within Europe, such as virgin, easy Jet and ryanair, and insofar as route and airport have been genuinely deregulated Qantas Earlier it was a state-owned domestic carrier, now it is fully private company and operate both domestically and internationally.

An over ambition growth strategy Debt restructuring plan Jan 1 2001-new strategies

Qantas Soft currency

Swissair Hard currency

Strong partner and less competitor

Partners problem

Rise in share price

Fall in share price

Thank you