Question

What are the advantages and disadvantages to Qantas’s international cooperative alliances?

Please write in your own words. Min 250 nd Max 400 Words.

Answer 1

An international cooperative Alliance is an important move for quanta to grab better market opportunities.

Advantages :

1.It creates more appropriate and sustainable base for Qantas.

2.By implementing the   
Working strategy as international cooperative allience Qantas successfully creates proper base for capturing better growth opportunities and makes them competent for international market.

3.It helps in Quanta to increase their activities in international destinations that
results in excess profitability to their flights and help in capitalising growth.

4.It helped Qantas in re-structuring and improving their cost schedule and increase air- craft utilisation and increase their network to growth market.
5.It helps in connecting key business hub which increases profitability in various segments of market.

6.It also helps in capturing international tourist enterprises and helped Qanta to increase their activities in international market.

Disadvantages :

1.The main difficulty in international cooperative Alliance with Qantas is a matter of control with its international partners like American Airlines etc.This element of control might result to disputes and loss in profitability.

2.The decision making process of Qantas is a major problem as the opinions of international trading partners are also considered on equal basis, this may result in sacrifice the main decisions of Qantas.

3.Major part of international capacity of Qantas is related and focused on Asia. So future growth opportunities of Qanta placed its international capacity on Asia.It may affect greatly on their working strategy and profitability.