Aussie Air Government Strategy Paper
Western Illinois University
Aussie Air
Strategy Paper
Marketa Nasenbeny
Becky Rossio
Dean Sideris
Dustin Dach
Doug Endres
Supply Chain Management 451
Zimmerman
14 April 2015
Detailed information regarding Aussie Air airlines
Aussie Air is currently the dominant form of air transportation in Australia. It used to be operated by the government, but now is a public company as of the 1990s. The airline is also in the process of becoming a force in the international market of air transportation as well.
The airline is vital to the economy in Australia. It is among the largest corporations and employers of the country and is responsible for enabling the growth of tourism within Australia as well. It has a current market capital value of AU$11 billion. It is also used to maintain domestic transportation schedules with companies to coordinate their events.
Aussie Air was recently approached by Down Under Air (DUA) and received an offer to purchase their outstanding shares, which would privatize Aussie Air. However, the airline must remain at least 51% owned by Australian investors at all times according to rules made when it was initially privatized. Since the company began issuing stock, the share prices have been closely monitored to ensure the company remains owned by an Australian company. Now, Aussie Air shares are trading for AU$4.20. If the company were to be negatively affected in the upcoming negotiation, the way of life for Australian citizens and the Australian economy could suffer greatly.
Market Information
Substitutes - There are other substitutes for a consumer riding on Aussie Airlines (AA), but those airlines might not be as safe or as reliable. For domestic transportation, a consumer could choose to ride a bus or a train to get a cheaper price, but their travel time would be longer. Similarly, for international transportation, a consumer could choose to take a ship from Australia to another country and get a cheaper price, but it would
Aussie Air
Strategy Paper
Marketa Nasenbeny
Becky Rossio
Dean Sideris
Dustin Dach
Doug Endres
Supply Chain Management 451
Zimmerman
14 April 2015
Detailed information regarding Aussie Air airlines
Aussie Air is currently the dominant form of air transportation in Australia. It used to be operated by the government, but now is a public company as of the 1990s. The airline is also in the process of becoming a force in the international market of air transportation as well.
The airline is vital to the economy in Australia. It is among the largest corporations and employers of the country and is responsible for enabling the growth of tourism within Australia as well. It has a current market capital value of AU$11 billion. It is also used to maintain domestic transportation schedules with companies to coordinate their events.
Aussie Air was recently approached by Down Under Air (DUA) and received an offer to purchase their outstanding shares, which would privatize Aussie Air. However, the airline must remain at least 51% owned by Australian investors at all times according to rules made when it was initially privatized. Since the company began issuing stock, the share prices have been closely monitored to ensure the company remains owned by an Australian company. Now, Aussie Air shares are trading for AU$4.20. If the company were to be negatively affected in the upcoming negotiation, the way of life for Australian citizens and the Australian economy could suffer greatly.
Market Information
Substitutes - There are other substitutes for a consumer riding on Aussie Airlines (AA), but those airlines might not be as safe or as reliable. For domestic transportation, a consumer could choose to ride a bus or a train to get a cheaper price, but their travel time would be longer. Similarly, for international transportation, a consumer could choose to take a ship from Australia to another country and get a cheaper price, but it would