Airline industrial analysis - Statistics Project Example

An overview of the companies is followed. As Canadas leading airline, Air Canada obliges about 165 destinations, in Canada, US, Asia/Pacific region and Europe. Together with regional affiliate Jazz, the carrier operates a fleet of nearly 330 aircrafts. It extends its grid as part of the Star Alliance global marketing group, which is managed by United Continentals United Airlines and Continental, and Lufthansa. In addition to its passenger business in both international and national markets, Air Canada provides cargo services. (biz.yahoo.com, 23.03.2011) Flying to about 60 destinations at home and another 100 in about 40 countries, Qantas Airways is Australia’s #1 airline.

Qantas has ownership of the regional carrier QantasLink and the low-fare carrier Jetstar. Both operate in Australia and the Asia/Pacific region. The Qantas fleet includes almost 230 aircrafts, and generates revenue from cargo, catering, and tourism operations as well. (biz.yahoo.com, 23.03.2011) According to the industry structure, based on federal oversight and the size and purpose of air carriers, both companies are categorized as Major Airlines (eHow.com, 23.03.2011). Although the same industry, the comparison companies’ target markets do not entirely overlap e.g. regional differences, spending power of customers, etc.

Their capacity levels are also not equal (e.g. Air Canada operates 330 aircrafts while Qantas operates only 230). Thus comparison analysis purposes it is assumed that the both companies operate with equal capacity in similar conditions. Based on the opportunities available for gaining advantages, airline industry is positioned in the ‘Fragmented’ section of the BCG matrix (Table 1). This explains that even though there are many opportunities for differentiation the opportunity for sustainable competitive advantage is slim.

As the competitors achieves the same advantage in a very short period of time disabling its competitiveness. Thus