Technical and Environmental Performance

Question: Discuss about the Technical and Environmental Performance. Answer: Introduction: Jetstar airways organization is a member of Qantas Group that offers low cost airline of Australia. Jetstar airways carry approximately 8.5% of the Australian passengers in and out of the country Australia (Jetstar.com. 2017). The airline is operating extensive regional network with the domestic and international services from its headquarter at Melbourne Airport. Like Quantas, a Jetstar airway competes with Virgin Australia. However, the organization has owned the low cost subsidiary of Tigerair Australia. The discussion states about the target market of the organization. The discussion discussed about the SWOT analysis also. The organization has some legal compliance issues that need to be solved. Jetstar airways have some trends with future challenges that are discussed. The assignment discussed about the model triple bottom line that is related with the topic and organization. As the organization provides flights of low cost, they target on the leisure travellers as well as on the business travellers also. However, the main target of the organization is to enter in the international market of tourism and make a strong position globally. They offer different discount offers for their passengers. They focus on both the business markets and consumers. According to Lucarelli (2014), 65% travellers travel for the leisure whereas 31% travellers travel for the business purpose and 4% travel for the other reasons. They are trying to send their flights in other regional areas to increase the profit and also try to raise the target market (Arjomandi and Seufert 2014). SWOT analysis: Strength 1. Low fair 2. Compete on the price rather than the value 3. Frequent market reach 4. Reasonable share market 5.Customer guarantee and price programs 6. Existing value chain Weakness 1. Negative brand equity 2. Competes with parent brand company 3. Competing only on price, do not focus on the value 4. Customer dissatisfaction 5. High cancellation of tickets Opportunities 1. Millennial market 2. Digital wallets 3. Technology utilization Organizational efficiency Threats 1. Strong competitors 2. Rising fuel costs 3. Terrorism 4. Global conflict Table 1: SWOT ANALYSIS of Jetstar Airlines (Source: Yin, Dargusch and Halog2015) From the above table, it is clear that the organization has various strengths and opportunities as well as has various weakness and threats. Jetstar airways need to overcome the weakness and threats to make a strong position in the international market. Legal compliance issues: Fair Work Ombudsman took action against Jetstar airways for engaging allegedly trainee pilots. The main allegation is that the organization is breaching the workplace laws by engaging the trainee pilots. According to Whyte and Lohmann (2015), in between 2010 to 2011, six trainee pilots were appointed that is revealed in the Federal court. The trainees are recruited on contract basis. Moreover, cadet pilots reimbursed allegedly Jetstar airways total o $ 17500 in between Jun and September 2011. However the organization did not pay the superannuation at the time of training period. The triple bottom has various components like economic, social and environment. Economic: in between 2008 to 2016, the growth of economic was slow because of the international oil fluctuation. Another reason for which economic growth became slow is airline flight crashes. However, Jetstar airways tried to get the market requirement internationally so that the economic growth can raise (Homsombat, Lei and Fu 2014). Social: the market analysis states that in 2015 the consumer number was increased. Jetstar airways are offering new employments to new trainees. Environment: Jetstar airways have various environmental benefits that have a good impact on the growth of market. Because of strong environmental support to Jetstar airways in Australia, the company can make a strong physical place in the international market. Trends of the Jetstar Airlines: The previous trend of the organization was that the organization gave air flights to holiday destination places and they offer discount offer to the leisure consumers. Jetstar airways gave various discount offers to their consumers like to the single and couples. Another discount they provide to the families and business employees. The recent trend of the organization is that Jetstar airline gave air flights to business consumers and leisure consumer. They provide discount on regional flights. The recent trend can affect the economic situation of Jetstar airline (Yin, Dargusch and Halog2015). It is hopeful that, the organization tends to focus on value and quality with price. The organization needs to raise the price of air flights in future to improve economic situation. The management system of Jetstar airline is trying to make various plans to improve market reputation and economic growth. Future challenges with recommendations: As Jetstar airline is focusing on low price only instead of value and quality, this can make a great challenge of future. Competitors of the organization focus on value and quality of flights. Economic condition of Jetstar airline decreases day by day that can be a major threat in future (Henriques and Richardson 2013). Jetstar airline needs to recruit professional pilots instead of trainee pilots. Raising price of oils with fuel may affect particular targeted customers. Prices of the flights need to be raised to decrease loss (Bamber et al. 2013). However, Jetstar airline has different scopes to evolve again and retain the market position in the global market. Arjomandi and Seufert (2014) stated that the organization needs promotion of the offers and plan, they provide in the global market and should win the customers trust he again. Conclusion It can be concluded; on the basis of the discussion that Jetstar airline retained a strong physical place in the global market. The social and the economical situation of this organization is falling day by day. Therefore, Jetstar airline faces loss. Jetstar airline use the social media for promoting their plans and may give attractive and catchy offers to customers so that the economic situation can be raised. Recruiting new pilots need to be checked that can affect Jetstar airlines. Qantas Group needs to be responsible during recruiting pilots. These kinds of conflicts provide chances to opponents for evolving fast. References: Arjomandi, A. and Seufert, J.H., 2014. An evaluation of the world's major airlines' technical and environmental performance.Economic Modelling,41, pp.133-144. 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