Airline Profile: Qantas

The principal Australian airline, Qantas serves over 85 major cities (including around 45 through codeshare services) in 36 countries throughout the Asia-Pacific, the Americas, Europe and South Africa.

Qantas has an extensive domestic network that serves over 55 destinations, supported by feeder services provided by three carriers under the QantasLink brand, as well as its Jetstar low cost subsidiary.

History

Qantas is the world's second oldest airline, having been established in the outback as Queensland and Northern Territory Aerial Services in 1920.

The carrier has played a key role in the development of Australian and international aviation.

In 1991 the Australian air transport market was deregulated and the following year Qantas acquired domestic carrier Australian Airlines, which was previously known as TAA (Trans Australia Airlines).

British Airways (BA) purchased a 25 per cent stake in Qantas in 1993, which was subsequently reduced in three stages to 18.25 per cent, before being sold off in September 2004 for UK £425 million. The cooperation between the two flag carriers continued, unaffected by this disposal.

Qantas was fully privatised in 1995, with its shares traded on the Sydney Stock Exchange from 31 July 1995.

In 1999, Qantas joined the oneworld global airline alliance.

In August 2000 Qantas and BA began to run their operations between Europe and Australia as a 'virtual single business’. The following month, the former-Ansett NZ operation began flying as a Qantas franchisee, under the Qantas New Zealand brand.

In November 2000, Qantas ordered 12 Airbus A380s and 13 Airbus A330s, ending 41 years as an all-Boeing fleet, at the same time, Qantas became the launch customer for the Boeing Longer Range 747-400ER, with an order for six.

In 2001, Qantas acquired Impulse Airlines and merged the carrier into its QantasLink operation. The Qantas Group then comprised three airlines: Qantas (International and domestic), Australian Airlines and QantasLink - as well a diverse portfolio of airline-related businesses.

In 2003 Qantas established a low-cost subsidiary under the Jetstar brand. In September 2004 the Singapore government’s investment arm, Temasek Holdings acquired a 3 per cent stake in Qantas.

The Australian Airlines operation, first established as a low cost subsidiary in 2001, was closed on 1 July 2006 and its fleet of Boeing 767s transferred back into the Qantas mainline fleet. In 2002, Qantas took a 4.2 per cent stake in Air New Zealand, anticipating the Tasman Networks Agreement, which failed to gain regulatory approval.

In December 2006, The Airline Partners Australia (APA) private equity consortium, led by Macquarie Bank and Texas Pacific Group, launched a bid to acquire the airline. Although the bid was initially accepted by the Qantas Board, it this failed to receive shareholder support and was abandoned in May 2007.

In April 2007 the Qantas board approved the purchase of a 30 per cent stake in the Vietnamese carrier, Pacific Airlines.

On 27 June 2007 Qantas sold of its shares in Air New Zealand for AU $107 million (US $89.6 million).

On 2 December 2008 British Airways announced the intention to enter into talks Qantas a view to a possible merger, which would be by means of a dual-listed company. On 18 December 2008 the carriers announced that merger talks had been abandoned after failing to come to an agreement over the key terms of the merger.

Fleet

• 16x Airbus A330
• 3x Airbus A380
• 56x Boeing 737
• 29x Boeing 747
• 29x Boeing 767

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