The Group operates in 44 countries across a network of 182 destinations, including those covered by code share partners. According to International Air Transport Association (IATA) data for 2009, Santa is ranked as the world's 11th largest airline in terms of Revenue Passenger Kilometers (RPK). The Group's brands include Santa, Jetsam, and Santa Link, along with several Jetsam brands in East Asia. Santa is based in Sydney and serves as the Group's standard fares airline while Jetsam, based in Singapore, serves as the Group's budget fare airline that also manages the Jetsam Asia operations.
Both brands, Santa Group and KILL-Air France, provide Australian domestic and international revise. Rather than being competitors, they are meant to complement each other. The Santa Group has remained profitable in a time when many other airlines have suffered significant losses, leading to mergers, takeovers, and
...bankruptcies of companies like Northwest and American Airlines.
Although the Group initially appears to be doing well, its profitability differs across divisions. While Starter's domestic and international operations are generally successful, the equine division known as Santa is not performing as well. Quanta's International market share has significantly decreased in the last decade. In 2000-2001, the airline held a dominant market position with 34.4% of traffic to and from Australia, but by 2010-2011, its market share had dropped to 18.7%.
Jetsam, launched as part of the response, absorbed 8% of international traffic in and out of Australia, increasing Santa Group's overall market share to 26.5% by late 2011. However, the economic viability of Santa's international operations is crucial to the company's business mission and objectives. Consequently, cost-cutting measures are a central aspect o
the Santa Group's strategy. Santa's cost base is approximately 20% higher than that of its main competitors, particularly Asian carriers. Furthermore, Santa lacks the strategically positioned hubs that its Asian and Middle Eastern competitors possess.
Santa is facing tough competition from airlines like Emirates, Tithed, and Singapore Airlines. Many of Santa's routes to Asia and Europe are not making a profit. On the other hand, Jetsam, which is part of the Santa Group, aims to expand rapidly in Asia and is one of the world's most profitable low-fares airlines. To address the financial challenges faced by Santa, management believes that outsourcing aircraft maintenance, hiring foreign crew and pilots at a lower salary will help reduce costs, similar to when Jetsam was established as the low-cost brand within Santa Group.
This assignment primarily focuses on the international passenger operations of the Santa and Jetsam branch of the Santa Group. The domestic Australian operations of the company are not the main subject of this assignment and should either be minimally discussed or omitted entirely.
1. The Santa case requires an analysis of why Santa should perform formal marketing auditing and marketing planning. It also requires an examination of the relationship between auditing, planning, and corporate strategy. This analysis should not be discussed in a general sense, but specifically applied to the Santa case. (6 marks)
2. In what ways can Santa utilize specific business tools to aid in conducting formal marketing auditing and planning? Please provide four examples. Please note that there is no need to extensively describe the business tools; instead, focus on explaining their potential uses. (3 marks)
The text asks about the key
factors in Santa's macro environment, specifically in the airline market. The text further requests a brief description of these factors and an explanation of why they are important, with a weightage of 3 marks.
The primary considerations for Santa's micromanagement within the airline market are what?
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