Swiss N Qantas

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Bad strategy And Bad fortune

Q.1 Transition from regulation to deregulation

• Both Swiss & Qantas are the National Flag


Carrier’s

• Both the countries are small in area wise

• Short average flight haul

•Both tried to be the best but had a contrasting


experience
Q.1 Transition from regulation to deregulation

• Flag airlines dominated in the 80’s

•Introduction of 3phase ten year reform in this


industry leading to a new breed of airlines

•Giving consumers choice with low fares

• New low cost airlines came into existence with


increase in competiton
Q.2 Three strategy adopted

1.Two fold strategy


2.Consolidate group of small European Airlines
• 49.5% stakes in Belgium’s national airline Sabena
and France’s Air Liib.
• 49.9% stakes in German's charter operator LTU
• 49.7% stakes in Italy’s Volare

3.To join an existing or form a new, network to


rival the star alliance or one world
Q.3 Qantas deal with shock much better than
swissair

Ansett went into bankruptcy


The gap in domestic market provided an
opportunity to Qantas
Swiss franc is hard currency whereas
Australian dollar is soft currency
The fall in share price of Swissair had badly
damaged its capacity.
Q.4 What should be the strategy adopted by
Swiss air

• Acquire holding on other airlines was a wrong


idea
• Should have stopped loss making routes
Q.5.

Q.5.1
No-frill airlines domestically
Acquiring stakes in other airlines

Q.5.2
Yes, it should adopt a strategy of significant
growth.
Back up of Australian government
Swissair

No membership with EU

Rising oil prices and appreciating currency

September 11,2001
Qantas

Government de regularization
Fall of Ansett
Terrorist attack
THANK YOU

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