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Qantas Background Essay

Air travel industry has come long way. Established with the intention of achieving more efficiency in communication, the industry has diversified itself to a far reaching economy. With the advent of war during the mid-centuries and globalization by the end of last century, the commerce morphed itself to become more useful in the economies of communication, freight, domestic and international investments, travel and leisure. Qantas which were among the few airline companies who have witnessed the transformation of the industry continued to adapt its progress on the change of the trade.

The company has answered the call of the diversifying and growing perusal of aerial commerce. Along with Netherland’s KLM, Colombia’s Avianca, and Czech Republic’s Czech Airlines, Qantas operated the first flagship air travel. Qantas operated its first aircraft, an Avro 504K, with a cruising speed of 105 kilometres per hour (65 mph) and carried one pilot and two passengers. The airline operated air mail services subsidised by the Australian government, linking railheads in western Queensland. World War I and World War I brought a new life to the airline industry.

The end of the wars highlights the beginning of a new and expanded air industry. Similar to many airlines in the allied countries, Qantas foresaw a future explosive demand for civil air transport, for both passengers and cargo. The company has invested in newly emerging flagships of air travel. Qantas expanded its operation from domestic travel to new international routes. In response to a growing competition, Qantas added efficiencies into its operation by buying new aircrafts which commanded a new level of speed, increase in passenger capacity, payload, and range.

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By last decades of the century, deregulation allowed new airlines to start up in the Oceania market. This has produced far greater competition than ever before. Averaging fares tend to drop by 20% or more. The added competition, together with pricing freedom, means that new entrants took market share with highly reduced rates to a limited degree from full serviced airlines, such as Qantas. This has been a major constraint on profitability for established carriers like Qantas as they tend to have a higher cost base.

To prevent any further loss of market share, Qantas responded by creating a new cut-price subsidiary airline, Jetstar Airways. It had also developed a full-service all-economy international carrier focused on the holiday and leisure market, which had taken on the formerly-used Australian Airlines name. Although the airline ceased its operations, Australian Airlines commemorated the expansion of Qantas into air travel market Today, Qantas is engaged in the transportation of passengers using two airline brands, Jetstar and Qantas.

Along with the growing industry for air travel, the Qantas group contributes to the economic growth, international investment and tourism of the country. During the fiscal year ended June 30, 2010, its Qantas group carried 62 million passengers in 26 different routes within and outside Australia across the Atlantics and Pacific’s. Qantas has maintained its position as the unbeatable first in commercial air trade of Oceania.

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