Financial Performance Of Qantas Airlines And Virgin Airline

Question: Discuss about the Financial Performance Of Qantas Airlines And Virgin Airline. Answer: Introduction This report reflects the key understanding on the financial performance of two companies named Qantas airlines and Virgin airline. With the increasing ramification of economic change and complex business factors these companies have adopted innovative and creative value chain activities for the betterment of clients satisfaction. Present description of organization Qantas Airlines company Qantas Airlines company is indulged in providing flag carrier airlines services and having headquarter in Australia. This company has international flights and international destination to provide best quality of services to its clients. It has several subsidiaries such as Jet star Airways, Jaconet and Qantas link. In addition to this, company has core competency to provide cheapest fair flights to its clients for the betterment of their satisfaction. This company has adopted cyber computing digital marketing system for promoting its airlines on international level. Qantas Airlines company has also increased its overall turnover by 20% in 2016 as compared to average last five year data (Shaffer, Mills, and Helms Mills, 2017). This has reflected that company has establish strong brand image of international level and establish effective level of quality chain for the betterment of clients satisfactions. Qantas Airlines company has several strategic alliance in which online air package s and tours operation are managed. Qantas Airlines company entered into strategic alliance with TUI for attracting more clients to travel in their airlines. Virgin airlines company It is an American company which founded in 2004 and started its business operation on international level. This company is having headquarter in Burlingame, California. Virgin airlines company has core competency to provide cheapest fair flights and luxurious services by entering into strategic alliance with other organization to its clients for the betterment of their satisfaction. However, company has more than 100 flights around the globe which is operating with a view to increase the overall satisfaction of clients. This company has various strategic alliance with other organizations so that it could provide complete package to its clients. In addition to this, Virgin airlines company has offered various small and big packages with attractive offers to its clients. The main current offer given by Virgin airlines company is related to online combo for new clients (Francis, et al. 2016). The main product differentiation strategy implemented by Virgin airlines company is accompanied with the development of app and other portals which could be used by clients to book their tour packages and flights through online portals. Promo codes are the most attractive offer given by Virgin airlines company to its clients for booking their flights online. Organization structure of company is associated with the online models and enterprises resources planning which allows its employees and customers to community online without any manual problems. Cyber competing system of Virgin airlines company also helps in resolving clients booking problems in easy and systematic manner. Company has increased its overall turnover by 25% as compared to last five year average data. Profit earning capacity of Virgin airlines company is also increased by 19% at the same time (Homsombat, Lei, and Fu, 2014). Conclusion Qantas Airlines company has increased its overall turnover by 20% and also implemented cyber computing enterprises resource planning. There are several finding about the Qantas Airlines company (Alamdari and Fagan, 2015). Company has increased its overall turnover as compared to last year data. It has adopted cyber computing system to promote online booking for better satisfaction of clients. Company has increased number of flights around the globe. Company has created strong brand image in the market. Virgin airlines company There are several finding about the Virgin airlines company which are given as below Development of app and online portal will reduce the complexity of business. Virgin airlines company has established strong brand image in the international market Company has increased its overall turnover 25% as compared to last five year average data. Profit earning capacity of Virgin airlines company is also increased by 19% at the same time. Online portal and developed app will be used by clients to book orders. Forecasting Virgin airlines company and Qantas Airlines company both have adopted sophisticated business channel of enterprises resource planning and cyber computing system. This will increase the overall clients satisfaction and booking airlines through online portals. These will help both companies to increase their overall turnover an international brand. This newly adopted strategic plan will help both companies to increase their overall profit and turnover in determined approach. However, other rivals in airlines industry are posing high amount of threats to Qantas Airlines company and Virgin Airlines (Barros, and Couto, 2013). References Alamdari, F. and Fagan, S., 2015. Impact of the adherence to the original low?cost model on the profitability of low?cost airlines.Transport Reviews,25(3), pp.377-392. Barros, C.P. and Couto, E., 2013. Productivity analysis of European airlines, 20002011.Journal of Air Transport Management,31, pp.11-13. Francis, G., Humphreys, I., Ison, S. and Aicken, M., 2016. Where next for low cost airlines? A spatial and temporal comparative study.Journal of Transport Geography,14(2), pp.83-94. Homsombat, W., Lei, Z. and Fu, X., 2014. Competitive effects of the airlines-within-airlines strategyPricing and route entry patterns.Transportation Research Part E: Logistics and Transportation Review,63, pp.1-16. Shaffner, E., Mills, A.J. and Helms Mills, J.C., 2017. Reading Qantas History: Discourses of Intersectionality and the Early Years of Qantas. InInsights and Research on the Study of Gender and Intersectionality in International Airline Cultures(pp. 445-469). Emerald Publishing Limited.