Table of Contents Topic Page Numbers

TABLE OF CONTENTS

TOPIC PAGE NUMBERS

INTRODUCTION  Company History 3  Company Subsidiaries 3-4

COMPANY STRATEGIES 5

RATIO ANALYSIS 6-12

RECOMMENDATIONS 13-15

APPENDIX 16-21

LIST OF REFERENCES 22

INTRODUCTION:

COMPANY HISTORY:

The Qantas story is inextricably linked with the development of civil aviation in Australia. It begins with fragile biplanes carrying one or two passengers in open cockpits and progresses to advanced Boeing 747s flying some 400 people half way around the world in a day. But it is a story of human endeavor, not just machines. A few determined individuals overcame formidable obstacles to establish the Queensland and Northern Territory Aerial Services Ltd (QANTAS). Today, Qantas is widely regarded as the world's leading long distance airline and one of the strongest brands in Australia. Qantas continues to provide outstanding service to its customers and is at the forefront of the international civil aviation industry. The future holds many challenges for Qantas - maintaining safe operations and world class product standards while building a viable and competitive position long term for the airline.

COMPANY SUBSIDIARIES:

QANTAS LINK:

Qantas Link regional airlines are wholly owned subsidiaries of Qantas and operate around 1,850 flights each week to metropolitan and regional destinations across Australia.

QANTAS FLIGHT CATERING:

Qantas Flight Catering Holdings (QFCH) is a wholly owned subsidiary that operates two catering businesses - Qantas Flight Catering Limited (QFCL) and Cater air Airport Services. QFCH has catering centers in five Australian ports - Sydney, Melbourne, Brisbane, Adelaide and Perth. Qantas has built a state-of-the-art plant in Queensland to centralize meal production for the airline and to supply non-aviation markets. The facility is operated by a wholly owned Qantas subsidiary, Snap Fresh Pty Ltd.

QANTAS FREIGHT:

Qantas Freight is an integral part of Qantas' core business. Our specialized air freight division markets three primary products - Cargo, Mail and Express Services - on all international sectors of Qantas flights. Qantas have also recently added the acquisition of

2 express road freight operator Star Track Express to the portfolio of domestic freight businesses in which Qantas is involved.

EXPRESS FREIGHTERS AUSTRALIA:

Qantas has formed a new wholly owned subsidiary domestic air freight business, called Express Freighters Australia, to support the growth of freight operations. Express Freighters Australia started operations in October 2006 with one aircraft and four pilots, increasing to four aircraft and up to 40 pilots by March 2007.

EXPRESS GROUND HANDLING:

Express Ground Handling, a wholly owned subsidiary of Qantas Airways within the Qantas Airports and Catering Group, provides comprehensive ground handling services to Jetstar and several regional airlines.

QANTAS HOLIDAYS:

Qantas Holidays a wholly owned subsidiary of Qantas Airways is Australia's premier travel wholesaler. For over 30 years, Qantas Holidays has been providing customers with holiday options throughout Australia and around the world. Internationally, Qantas Holidays is represented in more than 100 locations around the world. In Australia, Qantas Holidays has reservations centers in Sydney, Melbourne, Brisbane and Perth, with sales representation in each state and territory.

JETSTAR:

Jetstar is Australia's and Singapore's low fares airline for Australia and Asia-Pacific. Jetstar started flying within Australia on 25 May 2004 and within Asia just over six months later. Jetstar is launching international long haul flights from Australia to Asia in November 2006. Jetstar's Australian operation is wholly owned by Qantas but is managed separately and operates independently, with the Australian headquarters in Melbourne.

QANTAS DEFENCE SERVICES:

Qantas Defense Services provides aviation maintenance services and support to the Australian Defense Force, including the Australian Government's Special Purpose Aircraft fleet, the RAAF's Hercules fleet and the ADF's fighter and helicopter fleets.

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