Qantas: Marketing, Operations, and Finance Lecture Notes

Comprehensive practice flashcards covering the Marketing, Operations, and Finance aspects of Qantas based on the lecture transcript.

What is the core theme of Qantas's brand positioning used to establish brand awareness?

$\text{“the spirit of Australia”}$, which emphasizes Australian heritage and evokes national pride.

How many members are in the Oneworld Alliance, and how many destinations does it allow Qantas to reach?

There are $14$ members, extending Qantas's reach to $1000$ destinations globally.

In terms of interdependence, how does Marketing assist Human Resources at Qantas?

Marketing aligns with HR in creating job descriptions and designing training programs to ensure staff satisfy consumer needs.

What characterized Qantas's 'Selling Approach' during the 1950s and 1960s?

A focus on persuading consumers through sales promotions and advertising rather than identifying their specific needs.

How many members are part of the Qantas Frequent Flyer Program, and what is its strategic purpose?

Over $15\text{ million}$ members; it is used for relationship marketing to build loyalty and collect customer data.

How does Qantas interact with the 'Intermediate' market?

By selling flights and holiday packages through intermediaries like travel agents and online platforms like $Webjet$.

According to Maslow's Hierarchy, which psychological factor does Qantas emphasize to influence consumer choice?

Safety and security needs, by promoting its reputation as one of the world's safest airlines.

Which specific law must Qantas adhere to regarding consumer protection in Australia?

The $\text{Competition and Consumer Act (2010)}$ (CCA).

What penalty was Qantas ordered to pay in 2024 for 'Ghost flights' advertising?

$\$100\text{ million}$ in penalties for selling tickets for flights already decided to be cancelled.

Describe the price discrimination strategy used by Qantas.

Time-based pricing, where early bookings often receive cheaper fees while last-minute bookings receive higher prices.

In the SWOT analysis, what is identified as a major threat regarding Qantas's international routes?

The presence of over $35$ competitors, most of whom are government-owned or supported and have a lower cost base.

What is Qantas's domestic market share objective involving both Qantas and Jetstar?

To maintain a combined domestic market share of $65\%$.建设

What pricing strategy did Qantas use during the launch of Jetstar to gain initial market share?

Loss leading, with fares as low as $\$19$ for the Sydney-Melbourne route.

What percentage of Qantas's domestic leisure sales are processed through its official website?

$$70\%$$

What is the 'strategic role' of operations management at Qantas regarding cost?

Cost leadership, achieved by minimizing production costs through economies of scale and waste minimization.

How does the Oneworld Alliance help Qantas achieve economies of scale in operations?

By providing access to larger networks and sharing resources like airport lounges, which spreads fixed costs.

What is Qantas's environmental target for carbon emissions by the year 2050?

Net zero $CO_2$ emissions.

Under the '4 V’s' of operations, how does volume affect Qantas's Sydney to Melbourne route?

It utilizes large aircraft to lower unit costs, ranking as the second highest revenue-generating route in the world.

What specific software does Qantas use to automate its flight scheduling process?

The $\text{Sabre Air Flight Suite System}$.

What is the purpose of 'Task Design' in Qantas's operations?

Breaking down the transformation process into individual tasks to determine the number of staff, skills, and training needed.

How does Qantas mostly measure the effectiveness of its customer service?

Through $\text{Net Promoter Score}$ surveys and operational metrics like on-time performance.

What is 'Project Sunrise' in Qantas's operational and financial strategy?

The development of ultra-long-haul, nonstop flights from Australia's east coast to London and New York, planned for launch in $2027$.

How many suppliers does Qantas work with, and what is its annual supply chain expenditure?

Over $8000$ suppliers with an annual expenditure of $\$10\text{B}$.

What technology does Qantas use for real-time inventory forecasting of aircraft parts?

The $\text{PTCs Servigistics}$ platform, which covers $28,000$ components across more than $70$ locations.

Which safety audit benchmark does Qantas use for quality assurance?

The $\text{IATA Operational Safety Audit}$ and $\text{Civil Aviation Safety Authority}$ procedures.

What percentage of its fuel needs does Qantas currently hedge to protect against price increases?

$$83\%$$

What was Qantas's reported net profit in the 2023 financial year?

$\$2.47\text{ billion}$.

How did Qantas's gearing ratio behave recently as of the 2025 reports?

It was recorded between $491\%$ and $600\%$, though recently falling due to debt reduction.

How much did Qantas generate from the sale of surplus land near Sydney Airport to bolster its balance sheet?

$\$800\text{ million}$.

What is a 'Rights Issue' as used by Qantas during the pandemic?

An external source of equity finance used to raise capital, which raised nearly $\$500\text{ million}$.

How much 'JobKeeper' payment benefit did Qantas receive from the government?

$\$855\text{ million}$.

For how much did Qantas sell Sydney Airport Terminal 3 in 2016 before leasing it back?

$\$185\text{ million}$.

How many employees were stood down as part of Qantas's three-year COVID recovery plan?

$25,000$ employees were stood down, and $9000$ redundancies were made.

What is the 'Swap' strategy in global financial management?

Paying foreign currency-denominated costs using revenues generated in that same currency to provide a natural hedge.

What was Qantas's 'Current Ratio' in 2025, and what does it indicate?

$0.36:1$, indicating a negative working capital position where current liabilities exceed current assets.