The Qantas Group

The Qantas Group operates an extensive network serving Australia and other countries in Asia and the Pacific, the Americas, the UK, Europe and southern Africa. The Group services 120 destinations (57 in Australia and 63 overseas), carried more than 20 million passengers in 1999/2000 and employs around 30,000 people worldwide. It operates 151 aircraft – 107 in the core Qantas jet fleet and a further 44 flown by four regional subsidiary airlines serving all Australian states and mainland territories.

In the year ended 30 June 2000, Qantas increased its net profit before tax by 15 percent on last year, up $A100.3 million to $A762.8 million. Operating profit before abnormals and tax rose by 17.2 percent on the prior year, to $A705 million. Net profit after tax of $A517.9 million was 23.0 percent higher than last year and included the benefit of $A82 million from two abnormal items recorded in the first half of the year. Revenue increased by 8 percent to more than $A9 billion. The Directors declared a final dividend of 11 cents per share fully franked, and a special dividend of 37 cents per share fully franked.

Regional Airlines

Four wholly-owned subsidiary airlines operate regional services throughout Australia for the Qantas Group with aircraft flying in the Qantas livery.

  • Airlink serves 20 ports across six states and territories within Australia including Ayers Rock and Broome, and isolated resource industry communities such as Gove and Paraburdoo. It recently introduced services between Darwin and Dili. Airlink established a Western Australia sales base in Perth in August 1996 moved its head office to Perth in January 1998 to improve service to its Western Australian customers.
  • Eastern Australia Airlines flies to 13 cities and towns throughout New South Wales and on the busy corridor between Sydney and the national capital, Canberra, in the Australian Capital Territory (ACT).
  • Sunstate Airlines operates an extensive network throughout Queensland, between major regional business and tourism centres, across the Torres Strait to Horn Island and to Lord Howe Island.
  • Southern Australia Airlines links cities and towns in Victoria, western New South Wales, South Australia, Tasmania and the ACT. The airline operates jet services between Launceston and Melbourne and Sydney, and between Hobart and Sydney.

Engineering And Maintenance

Qantas operates one of the largest aircraft engineering and maintenance facilities in the Asia-Pacific region. Main operations are in Sydney and Melbourne. Qantas carries out maintenance on airframes, engines and avionics of its own core fleet as well as for domestic and foreign clients. Qantas has operated and maintained more than 50 different types of aircraft, from two-seater biplanes to Boeing 747-400s. Australia’s remoteness from the main aviation centres of Europe and North America has always required Qantas to be self-reliant. Qantas has won the Cumberbatch Trophy for air safety twice, most recently in 1990.

Qantas Freight

Although Qantas is primarily a passenger airline, air freight is an integral part of the core business. Qantas has been a freight carrier since its first scheduled service in November 1922 when it carried mail between Charleville and Cloncurry. Qantas Freight markets three primary products – Cargo, Mail, and Express Services – on all international sectors of Qantas flights. Domestic freight is marketed by Australian air Express Pty Ltd (AaE), a company Qantas owns jointly with Australia Post. Freight is carried primarily in the under-floor space of Qantas aircraft and additional capacity is provided on leased and joint venture freighter aircraft.

Information Technology

Qantas Information Technology supports the information systems used throughout the Qantas Group and is involved in the acquisition, development and application of new systems. Major projects included the airline’s cut-over to the QUBE reservations and RATIO yield management systems, and launching the Qantas Internet site – http://www.qantas.com.au – which provides product information, on-line schedules, arrival and departure information, company history, Fact Files and major media releases.

E-Commerce

The Qantas e-commerce division has some 60 staff, including industry experts in web technologies, telecommunications, consumer goods retail and retail travel. Qantas announced a new e-commerce strategy in August 2000, highlighting initiatives such as Internet-based offerings for consumer and corporate customers and travel partners, new consumer businesses supported on-line, purchasing partnerships; and the continuing development of the Qantas web site at http://www.qantas.com.au. As part of this strategy, the airline announced a major alliance with Telstra. Under this agreement, in coming months customers will be offered Qantas co-branded Telstra services including mobile phones and Internet access with Qantas Frequent Flyer members being awarded Qantas Frequent Flyer points for the usage of these services; and Qantas will become an anchor tenant on Telstra’s on-line portal, telstra.com, through the creation of a Qantas presence on the site. Other major e-commerce initiatives announced in 2000 include the airline’s membership of the Asian Travel Exchange being developed by leading airlines in the Asia-Pacific region, and corProcure, the business-to-business e-procurement exchange being established by some of the biggest companies in Australia.

Flight Catering

Qantas Flight Catering Holdings (QFCH) is a wholly-owned subsidiary that operates two catering businesses, Qantas Flight Catering Limited (QFCL) and Caterair Airport Services. QFCH manages eight catering centres in six Australian ports, including Sydney, Melbourne, Brisbane, Cairns, Adelaide and Perth. On 13 July, 2000, Qantas fully acquired the Brisbane and Cairns operations of Caterair and also gained management control of the Sydney Caterair business which remains as a joint venture. On 15 August, 2000 Qantas announced it will build a state-of-the-art plant to centralise meal production for the airline and to supply non-aviation markets. The facility would be operated by a wholly-owned Qantas subsidiary, Snap Fresh Pty Ltd. In the year to 30 June 2000, the Caterair and QFCL catering centres produced a total of 31 million meals for Qantas and other airlines as well as for railway and hospital clients.

Holidays

Qantas Holidays – the largest leisure travel wholesaler in Australia, with some 26 years’ experience – offers an extensive range of products covering the Qantas network, as well as operating a Barrier Reef cruise ship – the Reef Endeavour – with Captain Cook Cruises. Qantas Holidays was named 1999 Wholesaler of the Year in Australia’s prestigious annual National Travel Industry Awards for the third consecutive year.

Loyalty Programs

The Qantas Frequent Flyer Program is the largest Australian-based airline loyalty program. Members accumulate points mainly through flying with Qantas or its 20 Frequent Flyer international and domestic airline partners, including oneworld alliance airlines British Airways, American Airlines, Cathay Pacific, Iberia, Finnair, LanChile and Aer Lingus. Points are awarded according to the class of travel and kilometres flown and may also be accumulated through qualifying transactions with more than 4,000 hotels around the world, Hertz and Thrifty hire cars, Carey Limousines, Telstra Telecard and Travelex Foreign Exchange.

Points earned in the credit card loyalty programs of American Express and Qantas Telstra Visa and selected programs of a number of banks (CBA, NAB, AMP, Citibank) may be converted to Qantas Frequent Flyer points. Members who accumulate higher levels of points within a year are granted Blue, Silver or Gold tier status. At each tier, members receive extra service benefits, including higher priority service numbers, check-in, baggage allowances, and for Gold members complimentary entrance to the Qantas Club. Points can be redeemed for air travel on Qantas and qualifying associated airlines, hotel stays, and car hire companies.

Eligible Frequent Flyer members also have access to the oneworld airlines’ lounges. The Qantas Club Program provides members with access to a network of Qantas Club and associated lounges in Australia and around the world. The lounges provide a quality environment for passengers to relax or do business before flying. Access to the lounges is by subscription, which can be taken annually or for life. Access to the lounges is provided to Qantas Club members and Gold Frequent Flyers on the domestic network. On the international network, First and Business Class passengers are also offered entry.