Established in 1920, Qantas is the world's 11th largest airline and the 2nd oldest. It was founded in the Queensland outback as the Queensland and Northern territory Aerial Service (QANTAS) Limited, by pioneer aviators Hudson Fysh, Paul McGinness and Fergus McMaster. Qantas was a former government owned business; it did not view profits or efficiency as its prime goal. In 1993 a 25% stake was sold to British Airways. Qantas was privatised in 1995 and has had to adopt management practices to overcome both internal and external influences and had to change its narrow-minded culture. Although Qantas is primarily a passenger airline, air freight is also an integral part of its core business. Other Qantas …show more content…
Qantas management has responded to change by implementing their new business goal: to become a more competitive, efficient and profitable business and modifying its business structure through the use of outsourcing; a flatter business structure and entering into strategic alliances. The management needed to take both internal and external influences into consideration to ensure the changed was implemented with minimal resistance to such change.
Qantas has increasingly looked to outsourcing (i.e. contracting out business operations to outside suppliers), to become more cost effective and to simplify its business.
A clear example of this is when Qantas spent $14 million in sending seven of its Boeing 767 fleet to Singapore in 2002 for maintenance following three sent in October 2001.
However, there are a number of