new bussiness for australia domestic aviation market
... Melbourne - Perth 1,142,252 Perth - Sydney 1,132,313 Brisbane - Cairns 954,550 Hobart - Melbourne 941,821 Other 15,609,015 Total 36,391,797 Figure 1: the number of passenger in major 10 Australia cities 2003- 2004 According to DOTARS research, Australia domestic aviation market has been growing dramatically since year 2000. Especially the number of passengers in the route Sydney – Melbourne jumped 13.3 percent from 2003 to 2004. It can considered the reason that brought huge change to Australian domestic market that are, Deregulation by government Changing the value of customer for airline Low cost competition between airlines National culture change that surrounding aviation industry Collapse of Ansett in April 2002. Competition in Australia domestic flight Currently there is a hard competition in Australian domestic market. The lending airlines are Qantas, Jest star (owned by Qantas) and Virgin Blue. Qantas Qantas is the biggest domestic leading airline in Australia. Qantas covers 57 major cities and towns in Australia domestic market that are largest network and they offer most flight in Australia. Qantas offers the route Sydney – Melbourne, 30 flights per day with the cost from $69.00.(Qantas). Also Qantas has strong international market; this is huge strengths for Australian domestic market. Moreover Qantas aims to set up their image as a “multinational” airline by using the advertisement such as TV commercial which is taken in all over the world with the song “I still call Australia home” sung by Australian Boys and Girls choir. Also Qantas tries to employ multicultural staffs. Jet Star Jet Star is wholly owned by Qantas and managed by independently. Jet Star covers in major Western Australian cities with low airfare. Jet Star currently offers up to total 128 flights per day. Jet Star offers Sydney – Melbourne route 4 flights per day with the cost from $35.00 plus surcharges, taxes of between $23.00 and $69.00 that dose not include refreshments. (Jet Star) Virgin Blue Virgin Blue covers 23 Australian major cities, 3 major New Zealand cities, Fiji, Vanuatu and Cook Island with economical price. For example, Virgin Blue offers Sydney – Melbourne from A$59.00, average 25 flights per day.(Virgin Blue). These price doses not include in-flight refreshments. Virgin Blue aims to establish a “casual” airline image to attract holiday makers and frequent business passengers through advertisement, flight crew image, cost setting and management style. Airline Qantas Jet star(Qantas) Virgin Blue cover cities 57 15 27 Sydney –Melbourne per/day 30 4 25 lowest airfare Sydney – Melbourne $69 $35 plus surcharge and tax $59 refreshment include exclude exclude image of airline multicultural casual casual target customer business holiday maker Figure 2: features of major Australia domestic airline 3.2 Opportunity and threats. Opportunity 1. For Singapore airline, the Australia domestic market has a high potential market because Singapore dose not have own domestic market. Australia is huge opportunity country where locates 6224 km away from Singapore and Australia is the nearest country that has huge land, 7,741,220㎢. 2. Australia domestic aviation market has been growing dramatically, for example the route Sydney – Melbourne jumped up 13% in 2004. (Creedy, S 2004). The reason of this growth was shown above. 3. The collapse of Ansett created the market share change and we still believe that there is a gap in the Australia domestic market. From those three opportunities, we strongly believe that high possibility that Singapore Airline’s new venture a2 tap in to the Australian domestic. Threats 1. Our current threat is too keen low airfare competition between Virgin Blue and Qantas. Especially Qantas and Virgin offer Sydney – Melbourne route more than 20 flights per day with cheep price. 2. We have a major threat about brand image. We have a possibility to break down the Singapore Airline’s image, such as high quality service, safest airline in the world, has been established since 1947. The brand image obviously connects to customer’s demands. Therefore we have to be sensitive to control the a2 image by using marketing, management and advertisement. 3.3 Strengths and weaknesses. Strengths 1. a2 product A2 venture will be introduced a fixed airfare that depends on the routes. This fixed airfare includes all refreshments, magazines newspapers,...