This assessment should be written using a report style.

Jetstar Airways

Jetstar is an Australian low-cost airline that is a wholly owned subsidiary of Qantas. Jetstar is part of Qantas' two brand strategy of having Qantas Airways for the premium full-service market and Jetstar for the low-cost market. Jetstar has approximately 9% of the Australian domestic flight share.

The airline operates an extensive domestic network as well as regional and international services from its main base at Melbourne Airport, although its regional network in northern Australia limited and far from comprehensive. Like its Qantas parent. Jetstar competes with Virgin Australia and its fully owned low-cost subsidiary Tigerair Australia. Jetstar also competes with regional airlines like Regional Express. Airnorth, Hinterland Aviation. West Wing, Pelican Airlines, Sharp Aviation and Skippers Aviation.

Jetstar management thinks the company should expand its northern regional networks and include some charter flight facility. This would bring it into competition with several key regional airlines and a local charter services. Before any decisions are made you are hired to analyse the competitive situation and give advice.

Assignment Tasks

1. Read the short Jetstar description above.

2. Identify and discuss any existing competitive advantages Jetstar might have relative to the proposed expansion.

3. Research the economic environment Jetstar might be operating within in remote and regional Australia. Using a PESTEL analysis review the macro-economic environment and identify any issues you think might impact the expansion plan. You should include justification for issues you identify.

4. Using Porter's five forces model identify and discuss any competitive forces that might impact the expansion plan. You should include justification for issues you identify.

5. Propose a business level strategy the organisation might consider for its expansion and justify why you think it is best.

Word count: 1500