The market environment largely defines a firm’s marketing approach to its products and its target customers. Therefore, understanding the nature of the product and its offerings, the target customers and packaging can be determined. This paper aims to analyze the marketing environment of Qantas Airline for their rout from Australia to Bali, Indonesia. The marketing elements are segregated into two parts – microenvironment and macro environment elements (Cant, Strydom, Jooste, & Plessie 2006). Microenvironment elements are forces that are ingrained within the system of the firm that may affect the ability of the company to serve its target customers (Cant et al. 2006). The macro environment analysis relates to the larger market forces that have a strong impact on the microenvironment and consequently the firm’s ability to gain competitive advantage in the market (Cant et al. 2006). The microenvironment can be analyzed based on the organization, market channels, competitors, and market for the customers, and public. The organization analyzed in this paper is Qantas Airlines. It is important to understand that the other departments are also responsible for success of the marketing department within the organization. For instance, the stations at Bali and Australia are responsible for handling the proper marketing of the Australia-Bali route of the airlines. The first aim of Qantas should be to align all their departments to gain customer focused marketing. Qantas has streamlined departments that operate in conjunction with one another. They operate seamlessly, providing assistance and coordination to each other. The suppliers are also important. Qantas has sufficient supply of food and other refreshments for their passengers on the route from Australia to Bali (Qantas 2014). However, Qantas has faced problems on the labor front when the company had to downsize due to the financial crisis. The competition in the rout is intense as there is a lot of demand for the destination. There are other airlines like Cathy Pacific, China Southern, Virgin Australia, Garuda, China Eastern, and China Airlines who present a strong competition to Qantas (Farecompare 2014). Qantas being a low cost airline, provides competitive prices to their customers. Further, regular flyers can exchange their points with fare and hence can pay with both, points and cash. However, the prices for a one-way ticket in Qantas would cost around $750, while that in Virgin Australia or Garuda, Indonesia will cost around $300 to $400 (Farecompare 2014). The stark difference in the prices of the flights may become an impediment for the company to operate competitively on the route. The price competitiveness is one area where Qantas is far behind competition, and hence may affect the operations in the route. The third party online ticket sellers, like travel agents, always try to book the airline tickets at the lowest cost in order to bring down their overall cost and increase their sales. The customers of Qantas are usually business flyers and individual customers. Bali is essentially a tourist destination. The individual customers may be affected due to higher prices of the tickets in the route compared to other airlines. However