A thorough study of QANTAS Group and its subsidiaries
A thorough study of QANTAS Group and its subsidiaries

A thorough study of QANTAS Group

Abigail Johnson | 22 Jun,2020

Unachievable is just a word! Everybody says it, but QANTAS has proven it right, with a constant growth in its development chart over the century.

Absolutely, the company has crossed over the 100 years mark and has proudly served the Australian citizens and the people from around the world, with its world class facilities.

QANTAS has made a name for itself in the aviation industry, not only in Australia but in the entire world with its world class flying facilities. Having served the industry for almost 100 years, the company proudly declares itself as one of the most trustworthy organisations in the world of aviation.

An introduction to QANTAS

QANTAS has made a name for itself in the aviation industry, not only in Australia but in the entire world with its world class flying facilities. Having served the industry for almost 100 years, the company proudly declares itself as one of the most trustworthy organisations in the world of aviation.

QANTAS was formed in 1920 in Queensland and in 2020 it celebrates its completion of 100 years of continuous service of safety and precision. It mostly gives the credit of its success to its fellow Australians, who have helped the company achieve greater heights in its rollercoaster ride of success.

QANTAS is recognised as one of the strongest and most dependable long distance airlines of the world. It in fact enjoys a highly reputed name in Australia and employs a huge number of Australians and people across the globe.

The company is known for its superiority in terms of safety, operational dependability, servicing the customers, planning, maintenance and engineering. The prime business of the brand involves the transportation of its customers with the help of its two airline brands- Qantas and Jetstar. These two brands are known to serve class and safety to its regional, domestic and international customers. Further the Qantas group has a broad range of subsidiary businesses that list from Qantas Freight Enterprises to its frequent flyer services.

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A brief about Qantas History

Qantas was originally registered as Queensland and Northern Territory Aerial Services Limited. It started its operations on 16th November 1920 in Queensland. Its founding chairman was Fergus McMaster and in his words Qantas was “inspired by the spirit of ANZAC”. The airlines in its very early days prove to be vital for Western Australia to form connections with the world, which is why a lot of enthusiasm was seen in its people, who invested in its shares as well as bought tickets to connect with the outer world.

The vision of QANTAS founder from the very beginning was aligned with the fact of introducing and pioneering an absolutely new fashion of travel for its fellow Australians and people from the world. He did not just want it to take the shape of just another airline. The vision for the company was crystal clear to fly overseas and rule the world.

Quick QANTAS history facts

  1. In 1935, the company expanded overseas by introducing flying services between Brisbane and Singapore.
  2. In 1938, full cabin service was introduced in empire flying boats which linked the two majors Sydney and Singapore.
  3. From 1939-1945, the company served as a front line airline and continued its operations during the world war and played a significantly important role in the evacuation and transportation of passengers.
  4. 1945-58, Post war, the company established strong services within Australia to ensure a proper flow of transport and communication between the Australians. It also collaborated with British Airways and restarted its flight connectivity with London.
  5. The jet age arrived in 1959 with the establishment of Boeing 707s and 747, ensuring the introduction of creative, upto date, modern and dynamic design. This was the time when flight hostesses started to be believed as the marketing symbol of all aviation companies and QANTAS left no stone unturned to mark itself as one of the most glamorous airline services.
  6. 1992-2019 was the era of privatization, when a number of mergers and announcements were made. In 1993, Qantas and Australian Airlines merged under the name of ‘Qantas The Australian Airline’. Further in 1995, the company listed on Australian stock exchange for the first time. Additionally, a number of services were resumed and long distance continuous flights were introduced. In fact, this was the time when the company showed great progress in terms of service expansion and made a name for themselves in the world.
  7. In March 2020, the company has successfully completed its 100 years and the company aims to provide better comfort and services to its customers by achieving much more success growth in the years to come.

A detail about QANTAS subsidiaries

Over its 100 years journey, QANTAS has become a brand, which is popular among the people of the world. It has been the reason people smile and the one which helps them earn bread and butter for their families. Not only has the company established its mark in the business of transportation of passengers and air freight, the organisation also deals into a number of subsidiaries, which are listed below.

  • QantasLink- the regional airline of Qantas group

    This particular airline has been launched by the company to serve its fellow Australians and add ease to their daily transportation facilities. With the modernisation of the world and the increasing requirements of travelling, QANTAS has launched this specific regional airline for the people of Australia.

    The brand operates more than 2000 flights in a week to various metropolitan and business destinations of Australia. It extends its network to over 56 metropolitan and regional cities of Australian origin.

  • Qantas Loyalty

    It refers to an innovative business model of Qantas led by Data, which helps in driving the loyalty of Qantas customers and partners through its programs named as Qantas Frequent Flyer and Qantas Business Rewards. Till date over 12 million members have been rewarded with Qantas points, for categories which range from travel to retail, financial services to health and well being and other food, wine and small scale businesses.

    It further helps other businesses to stay connected with its customers and earn their loyalty with its over the years successful strategies. It also aids the companies in taking their businesses forward.

  • Qantas Freight

    An independent air freight service business, which is believed to be the largest in Australia, Qantas Freight ships over 4000 items of air freight to more than 500 global destinations daily. Additionally dedicated terminals for cargo handling are accessible at 22 locations across the globe. Further the company has highly trusted business associates who are proficient at providing road transport and home delivery services, which efficiently helps in completing the delivery cycle.

  • Jetstar Group

    A subsidiary of Qantas, Jetstar has made a name for itself and is highly popular in the value based markets due to its low costing fares and frequency of leisure flight services.

    In Australia and New Zealand, Jet Airways is wholly owned by Qantas Group, whereas Jetstar Asia, Jetstar Pacific and Jetstar Japan are in partnership with Singapore company Westbrook Investments, Vietnam Airlines and Japan Airlines, Mitsubishi Corporation and Tokyo Century Corporation, respectively.

    The Jetstar group in totality provides a count of over 4000 flights per week to over 75 destinations spread across 17 countries. It covers this business with a fleet count of more than 120 jet aircrafts.

  • Jetconnect

    It is yet another entity wholly owned by the group of Qantas. It is based out of New Zealand and has its operations spread across the regions of Tasman. The company is also accountable for providing cabin crew services to its home country Australia and placed across the world.

  • Express ground handling

    A subsidiary of Qantas Airways which falls into the Qantas Airports and Catering group, is fully owned by Qantas. It is accountable for offering comprehensive ground services to Jetstar and other airlines operating regionally.

  • Qantas Holidays

    Considered to be one of Australia's most prominent travel wholesalers, Qantas Holidays falls under the suite of Jetset Travelworld group. Its services range from destination promotions, holiday packages, event packages including stage shows and sports events, code share services and packaging for airlines other than Qantas group, under the name Viva.

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A glimpse of Qantas organisational structure

Qantas organizational structure follows a corporate governance framework, which is taken care explicitly by its board of directors who assure a three step application of shareholder value. The three steps of Qantas organizational structure can also be termed as the definitive vision, with which the company works. These are “creation, protection and enhancement of shareholder value”. (Our governance, n.d.). The organizational structure of Qantas is a mixed centralized and decentralized structure of organization.

The entire Qantas management structure is taken care of by the board of directors, which is also further seen by the Qantas Audit Committee. The board ensures the obedience of the Business integrity program of Qantas. The board has formed a charter and works in accordance to the rules and regulations being framed and documented in a written piece mentioned on the company’s website. The board of the Qantas management structure is headed by a 10-member board committee of which Richard Goyder is the chairman and Alan Joyce is the CEO of Qantas Airlines.

A glimpse of Qantas organisational structure

The respective board assures the right management of the Qantas organizational structure and oversees that every single task of operation is properly managed at each level, beginning from the commencement stage. Also, the Qantas board has formed a committee charter for each department, which sees that the flow of information is well maintained and communicated at every phase of its development. Moreover, Qantas flights look forward to maintain a healthy relationship with its internal and external public. Along with providing high class services to its customers at the Aviation sector, the company also sustains transparency of information between its employees.

The board is accountable towards the implementation of all the legal and constitutional policies at each level of the Qantas management structure. It is because of the right formation and execution of the laws at all steps of the organizational structure that Qantas has managed to rise at such heights. The company is also believed to be an imperative contributor to the economic development of Australia. As per the 2017 data, the company provides employment to more than 26,000 people across the globe.

Qantas Business leadership structure

The leadership of QANTAS has been highly recognised and valued in the business world. It is the prime reason that the company has grown so well under the diligent and expertise guidance of such experienced professionals.

The board of directors comprises 10 members, most of which are independent non- executive directors, who work cohesively with the group CEO of Qantas- the Executive Director. All of these hail with strong experience and possess diverse perspectives with respect to their work knowledge. The group has been ensuring profitability to its various shareholders including customers and employees much because of the extensive knowledge and independent work culture it has brought into function.

The board comprises a team of four women and six men.

  • Richard Goyder AO- Chairman and Independent Non-Executive Director

    B*Com, FAICD

    Chairman of the nominations committee, Richard Goyer became an appointed member of Qantas board in November 2017. He then got the position of chairman in 2018. He is also the chairman of prominent companies including the West Australian Symphony Orchestra, Woodside Petroleum Limited, JDRF Australia, Channel 7 Telethon Trust and the Australian Football League Commission. Additionally, he is a serving member of various committees and organisations in Australia.

  • Alan Joyce AC – Chief Executive Officer

    BApplSc(Phy)(Math)(Hons), MSc(MgtSc), MA, FRAeS, FTSE

    Alan Joyce AC, took to the role of being the CEO of Qantas Airways on 28 November, 2008. Initially, he joined Qantas in the year 2000, and handled the network planning, planning of schedules and Network Strategy Functions. It was in the year 2003 that he became the CEO of Jetstar Airways, which happens to be a subsidiary of Qantas Airways, before taking the role of the CEO of Qantas, in 2008. Further, there have been many feathers added to his cap such as being a member of the Board of Governors of the International Air Transport Association and a Director of the Business Council of Australia.

  • Maxine Brenner – Independent Non-Executive Director

    BA, LLB

    Independent Non-Executive Director, Maxine Brenner was appointed to the Qantas Board in August 2013. She is a member of the Remuneration Committee and the Audit Committee. She is also the proud Director of Origin Energy Limited and served as Managing Director of Investment Banking at Investec Bank, Australia. Formerly, she had also served as a lecturer in the Law Department at two eminent Universities in Australia, namely The University of New South Wales and The University of Sydney. Her areas of expertise include corporate advisory work, particularly in relation to mergers and acquisitions, corporate restructures and general corporate activity.

  • Jacqueline Hey – Independent Non-Executive Director

    B. Com, Grad Cert (Mgmt), GAICD

    Jacqueline Hey is a member of the Audit Committee and was appointed to the Qantas Board in August 2013. She is an inspiration for many and serves as the Chair of Bendigo and Adelaide Bank, in effect from 29 October, 2019. Also, she is the director of Cricket Australia and AGL Energy Limited. In the earlier phase of her professional life, she shouldered various professional roles such as being the Managing Director of various Ericsson entities, the Director of Australian Foundation Investment Company and a member of the ASIC Directory Advisory Panel.

  • Belinda Hutchinson AM – Independent Non-Executive Director

    BEc, FCA, FAICD

    Belinda Hutchinson is a member of the Audit Committee and the Safety, Health, Environment and Security Committee and was appointed to the Qatar Board in August 2018. She is presently serving as the Chancellor of the University of Sydney, Chairman of Thales Australia and Chairman of the Future Generation Global Investment Company. It is because of her great services to the business world which she has been offering for over 30 years, by taking up different roles in the finance sector, and for her fundraising initiatives for cultural, medical and social medical organizations that she was awarded a Member of the Order of Australia (AM) in 2007.

  • Michael L’ Estrange AO – Independent Non-Executive Director

    BA (Syd), MA (Oxon)

    Michael L’ Estrange was appointed as an Independent Non-Executive Director to the Qantas Board in April 2016. He is an esteemed member of the remuneration committee and the Safety, Health, Environment and Security Committee. The various professional responsibilities which he has shouldered in his career include heading the National Security College at the Australian National University, being the Secretary of the Department of Foreign Affairs and Trade and Australian High Commissioner to the UK from the year 2000 to 2005. It was from the two prestigious Universities namely- the University of Sydney and The Oxford University that he gained his academic qualifications and got himself ready to serve the world.

  • Paul Rayner – Independent Non-Executive Director

    BEc, MAdmin, FAICD

    Paul Rayner, happens to be the Chairman of the Remuneration Committee and a member of the Nominations Committee. He was designated as a member of the Qantas Board in July 2008. He is also the Chairman of Treasury Wine Estates Limited, a Director of Murdoch Children’s research institute and a Director of Boral Limited. He is an influential personality who has also served as the Finance Director of British Tobacco plc, London. Along with this, his professional journey also includes 17 years of dedicated working in various finance and project roles with General Electric, and the Elders IXL Group and Rank Industries.

  • Todd Sampson – Independent Non- Executive Director

    MBA, BA (Hons)

    Todd Sampson was designated to the Qantas Board in February 2015 and serves as a member of the Remuneration Committee. He has gained significant 20 years of experience in communication and marketing. He has served as the Executive Chairman of the Leo Burnett Group and Director of Fairfax Media Limited.

  • Antony Tyler – Independent Non-Executive Director

    BA (Jurisprudence)

    Antony Tyler, is the Chairman of the Safety, Health, Environment and Security Committee and also a member of the Nominations Committee. He is also a Non-Executive member of Bombardier Inc. He has developed his professional expertise by taking up many crucial roles in his career such as the Director General and Chief Executive of the International Air Transport Association and a member of Cathay Pacific Airways Limited.

  • Barbara Ward AM – Independent Non-Executive Director

    BEc, MPolEc

    Barbara Ward was appointed to the Qantas Board in June 2008. She has taken up the roles of being the Chairman of the Audit Committee, a member of Safety, Health, Environment and Security Committee and a member of the Nominations Committee. Earlier, she served as a Director of Commonwealth Bank of Australia, Lion Nathan Limited and Data Advantage Limited.

Group Management Committee

This is the team which is actually responsible for managing the business and bringing fame and name to the QANTAS group. The continuous involvement of these experienced minds sprinkle the magic of expertise to the commercial and operational sectors of the various airlines and businesses the organisation deals into.

The committee comprises 11 senior executives.

  • Alan Joyce AC

    Chief Executive Officer

    Serving as the Chief Executive Officer and Managing Director of Qantas from November 2018, Alan Joyce has been the man behind few of the biggest transformations at Qantas. His leadership and guidance has manifested enlightenment and continuous growth to various businesses and departments of the QANTAS group.

  • Andrew David

    CEO, QANTAS Domestic and Freight

    A person with a thorough understanding of the airlines industry, Andrew joined QANTAS in July 2014 as COO and the very next year in March, he was appointed as the CEO of Domestic. He has spent an extensive amount of time in airlines business of various countries. His broad experience includes the names of some highly reputed organisations such as Tiger Airways Australia, Virgin Australia and Air New Zealand.

  • Gareth Evans

    CEO, Jetstar Group

    A man known for his intelligence, Gareth Evans became the appointed CEO of Jetstar group in November, 2017. Before this, he has served various roles inside the QANTAS group and has brought significant turnovers for the business expansion and profits of the organisation.

  • Andrew Finch

    General Council and Group Executive, CEO office

    Having joined the company in 2012, Andrew Finch serves as the General Council and Group Executive for the office of CEO. Also, he is the company secretary of Qantas group.

    He is accountable to lead a number of teams which are further responsible for handling legal, governance, compliance and business integrity matters. His teams also look into corporate affairs, relations of industries, remunerations and benefits across the Qantas group.

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  • John Gissing

    Group Executive, Associated Airlines and Services

    Serving as the Group Executive to Associated Airlines and Services to QANTAS Group, John Gissing also serves many additional responsibilities. He has been a part of the group since 1999 and hails a total enthralling experience of 35 years in the aviation industry.

  • Vanessa Hudson

    Chief Financial Officer

    Having been a part of the Qantas group since 1994, Vanessa HUdson has served many roles and responsibilities throughout her learning journey with QANTAS group. She is presently the CFO of the group and is accountable for varied financial, auditory, investing and procurement duties with respect to the group interests.

  • Tino La Spina

    Chief Executive Officer, QANTAS International

    A man of words, Tino La Spina not only has a great personality but also possesses a magnetic aura. He has been a part of the Qantas group since 2006, when he joined as General Manager strategy and today he is the CEO of Qantas International.

  • Rob Marcolina

    Group executive, Strategy, People and Technology

    The man behind the management of the QANTAS human resources, IT and strategy, Rob Marcolina has made considerable transformations in the companies across the Qantas group. His strategies have enabled the QANTAS people to achieve a state of contentment and processed a flow of easy communications between the various stratas of the management.

  • Andrew Parker

    A man responsible for all the public affairs of the QANTAS group, Andrew Parker is the Group Executive for Government, industry, international and sustainability. He manages all these sectors for the Qantas group on a worldwide scale.

  • Stephanie Tully

    Being a dedicated member of QANTAS group for 15 years, Stephanie Tully was chosen as the Chief Customer Officer in the year 2019. She has been a constant source of inspiration for all her team members and has time and again spilled her magic of her words and intelligence over her team members and customers.

  • Olivia Wirth

    Serving as the Chief Executive Officer at Qantas Loyalty since 2018, Olivia Wirth has actually been an integral part of the QANTAS group from 2009. She has previously extended her services to various departments of the group.

Alan Joyce- A man of perfections, management and empathy

Background information

Alan Joyce is an Irish by birth and he has taken educational degrees from the Dublin Institute of Technology and Trinity College, Dublin. He was born in a service class family and is known to be a very down to earth person. His hardships have made him learn the values of honesty, humbleness, openness and truthfulness. He started his career with Aer Lingus and worked there at various positions for 8 long years. Further, in 1996, he joined Ansett Australia and shifted to Australia. In 2000, he got the fortunate opportunity to join QANTAS as the head of network planning and strategic functions. After that there has been no looking back for the man.

Present

Alan Joyce- a man of perfections, management and empathy

Alan Joyce is presently the CEO and Managing Director of Qantas Group. He has been serving this position since 2008. Throughout his journey as a CEO with Qantas group, he has seen a number of ups and downs. He has witnessed the qchange and has even become the reason of change, which is why his leadership is considered to be highly appreciated and valued in the business world.

The leadership style of Alan Joyce has always been the talk of the town. Ranging from his efforts to provide comfort and empathy to his customers, Joyce has been well accepted by the members of the Qantas group. His guidance is always insightful and his transformations have made significant difference in the world of aviation and customer servicing.

He is the man who has received the award ‘The companion of the order of Australia’, the highest honour for his services to the mankind, aviation sector, gender equality and community. Many publications and corporates around the world have regarded Alan Joyce as the exemplary leader whose vision has turned the fortunes of the QANTAS group. There were times when QANTAS was about to doom, but with the guidance and leadership of Alan Joyce, QANTAS, is today shining as the brightest star in the Australian economy. It is certainly because of the assertive goals of Alan Joyce and his ability to make his members move on his visionary path, that he along with his QANTAS group members have achieved such great heights of success.

The leadership style of Alan Joyce is generally recognised as the transactional or the managerial leadership style. This style allows the leader to stay in direct contact with his employees and keep an eye on their activities. Also, the results of the act are supposed to be either rewarding or punishable, depending on the degree of achievement. This is believed to be a great style to boost the performance of the team members, as it clears out the aim of the team and gives them a descriptive path to work accordingly.

Further this kind of leadership proves to be the ultimate source of motivation for the employees to keep moving ahead towards their goal. Additionally, when the mentor himself is all time ready to guide his team mates, then it is not only encouraging for the team members, but also elightens their path with absolute perfection and confidence.

Thus, it is extremely important for every leader to adopt an attitude which is helpful and motivating as well. It is with the commencement of such a working atmosphere that organisations can learn to produce high profits along with earning the trust and confidence of its employees.

Intellectual growth should commence at birth and cease only at death.

Albert Einstein

As rightly said by Albert Einstein, learning is a never ending process. One should never stop learning and the same has been absolutely proven by the QANTAS group. The company has risen to heights by continuously transforming its managerial processes and internal structures. It has not only promoted innovation but has also inculcated the spirit of righteousness in all its employees. Its constant expansion programs and new ventures, further motivate the employees to stay connected with the goal of the company and visualise their personal as well as the professional growth with the developmental chart of the group.