1. Company background
Qantas was founded in the Queensland outback in 1920. It is the world’s oldest continuously operating airline. The name comes from the initial letters of the words in the original registered title -- Queensland and Northern Territory Aerial Services Limited. Qantas has four operating segments including Qantas, Jetstar, Qantas Frequent Flyer and Qantas Freight Enterprises. Its main business is the transportation of passengers which is operating under two complementary airlines - Qantas and Jetstar providing international, domestic and regional services. In 2010/11 passenger revenue contributed $12.0 billion equating to 81 per cent of the Group’s total revenue. The transportation of passenger segment is the focus of our report.
2. Value chain analysis
2.1 Organisation value chain
Inbound logistics - Qantas’s inbound logistics activities include selecting route, establishing passenger service system and yield management system, flight scheduling, crew scheduling, facilities planning, purchasing fuel and aircraft acquisition.
Operations - Activities in the operations stage include operations of ticket counter, gate and aircraft, on-board service and baggage handling.
Outbound logistics - Outbound logistics involves flight connections, baggage system, hotel reservation system and rental car system.
Marketing and sales – Except for marketing activities as the Qantas Group, Qantas runs Qantas Frequent Flyer (QFF) loyalty program which is a operating segment in its own right enabling its members to earn points from more than 500 partners including Qantas and 25 partner airlines, credit cards, Woolworths Group companies, restaurants, hotels, car rental companies, entertainment providers and other retailers. Also, Qantas owns Qantas Holiday to wholesale its products.
After-sales service - After-sales service can include activities such as lost baggage service and complaint follow-up.