• Qantas is the 11th largest airline in the world.
• Qantas is the world’s 2nd oldest airline, & the oldest airline in the English speaking world.

Business management and change

Over the next 3 years Qantas has big plans to grow and to keep the airline successful, the key features include:

• Investing heavily in new technology to improve its efficiency. Qantas aims to use a 10 year plan and spend $13 billion on new aircrafts to modernise its fleet.
• Expand its travel, catering and fright divisions to protect it from the peaks of its core airline business
• Seek mutual beneficial partnerships with other quality airlines
• Segment its flying business to align costs and revenue in particular markets.
• An expansion of many of its terminals. Already Qantas has announced a $100 million expansion of its domestic terminal in Sydney.
• Raising of equity find to help fund it’s spending.

Although Qantas’s business plan faces several threats:
• Enterprise bargaining agreements with more that 80% of its workforce
• A court case instigated by the Australian Competition and Consumer Commission (ACCC) over alleged predatory pricing.
• The possibility of a third domestic airline.

Qantas had a classical scientific management structure with cultural characteristics as Hierarchical management structure which was Multi-layered, A long chain of command, specialisation and departmentalisation, autocratic management style and a lack of financial accountability

The domestic airline industry was deregulated in 1991, with the removal of regulations over price controls and entry into the industry. In 1995 Qantas was privatised.
These changes had impacts on the management of Qantas:
• Qantas had to become more competitive efficient and profitable
• Qantas had to now pay taxes and levies paid by other business in Australia
• Qantas had to make profit and pay dividends to shareholders

As a result they had to change there management practices...