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Qantas was established in the Queensland outback in 10 and is Australia’s largest domestic and international airline. Registered initially as Queensland and Northern Territory Aerial Services Limited (QANTAS), the airline has performed a reputation for excellence in safety, operational reliability, engineering and maintenance, and customer service. Qantas excellent reputation in terms of safety and security; for instance, when Boeing 747-400 jumbo jet was about to land in Bangkok, Thailand from Sydney, it ran off the runway, and on to a nearby golf court on September, , 1 (Reynolds, 1). Even though the fixing cost of the broken nosewheel was more expensive than buying a new aircraft, the airline decided to repair the jumbo jet in order to maintain its core competence of never loosing any of its aircraft successfully (Johnson Scholes, 00).
Today, Qantas owns 187 aircrafts and flies to 14 destinations, 67 in Australia and 75 in other countries. According to the 001/00 annual report, the airline carried more than 7 million passengers and employed more than ,000 multinational staff who can speak more than 50 different languages.
Not only airline business, but also Qantas operates subsidiary business in specialist markets such as Qantas Flight Catering, which provided last year almost 8 million meals to Qantas and other airlines as well as non-airline clients including hospitals and railways, and Qantas Holidays, which is Australian’s largest travel wholesaler of both domestic and international holidays designed for independent travellers and small groups. Qantas offers a holiday package Fly Qantas and Travel with Qantas Holiday.
In terms of financial stability, the year ended of June 0, 00 of Qantas performance summary, shows sales and operating revenue has been increased steadily since 18. In 00, the airline earned 11,.6 million dollars before taxes. Net profit after tax of 48 million dollars was three percent up from last year. The Directors declared a fully franked final dividend of nine cents per share, bringing total fully franked dividends for the year to 17 cents per share. However, most of the expenditure derives from manpower and staff related, 68. million dollars, which can be considered approximately one fourth of the total sales and operating revenue and total expenditure (see appendix A B). Consequently, the company has faced a difficulty in competing with Virgin Blue whose labour cost is reported 5 percent lower (Marsh, 001).
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In brief, the performance summary above illustrates that Qantas has invested its large proportion of assets in human resource and its function.
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