Qantas’ Jetstar: Launching and Growing a Low-Cost Airline SubsidiaryÂ Case Solution
This case is aboutÂ Strategy
published: 20 Dec 2013
Case explains the entry of low-cost rivals in the decontrolled Australian airline market, and the choice due to the Qantas Group to release a low-cost provider subsidiary (Jetstar) in the domestic market. Lots of such airlines-within-airlines had actually stopped working in the United States and Europe. The case likewise explains possible chances for worldwide growth of Jetstar into medium and long-haul low-cost service.
The case permits broad conversation about sources of competitive benefit for low-cost and separated rivals, and how distinguished companies can react to low-cost brand-new entrants. It highlights the company and tactical intricacies of handling 2 various service designs within the exact same company, and the dangers of wearing down competitive benefit through market growth.