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.............................. Qantas Australian Airline Logo and Trademark..............................

Qantas Airways Limited is the national airline of Australia. The name was originally "QANTAS", an acronym for "Queensland and Northern Territory Aerial Services". The airline is based in Sydney, New South Wales and is Australia's largest airline. It is the second oldest continuously running Airline, after Dutch Based KLM, which was founded in October 1919. In 2007, Qantas was voted the fifth best airline in the world by research consultancy Skytrax a drop from second position it held in 2005 and 2006. Qantas has the 17th largest fleet in the world with 218 planes. 

The Australian Government sold the domestic carrier Australian Airlines to Qantas in August 1992, giving it access to the national domestic market for the first time in its history. The purchase saw the introduction of the Boeing 737 and Airbus A300 to the fleet — though the A300s were soon retired. Qantas was privatised in March 1993, with British Airways taking a 25% stake in the airline for A$665m. 

After a number of delays, the remainder of the Qantas float proceeded in 1995. The public share offer took place in June and July of that year, with the government receiving A$1.45b in proceeds. The remaining shares were disposed of in 1995-96 and 1996-97. Investors outside Australia took a strong interest in the float, securing 20% of the stock which, together with British Airways 25% holding, meant that, once floated on the stock exchange, Qantas was 55% Australian owned and 45% foreign owned. By law, Qantas must be at least 51% Australian-owned, and the level of foreign ownership is constantly monitored.

   

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In 1998, Qantas co-founded the Oneworld alliance with American Airlines, British Airways, Canadian Airlines, and Cathay Pacific. The alliance commenced operation in February 1999 , with Iberia and Finnair joining later that year. Oneworld markets itself at the premium travel market, offering passengers a larger network than the airlines could on their own. The airlines also work together to provide operational synergies to keep costs down.

The main domestic competitor to Qantas, Ansett Australia, collapsed on 14 September 2001. Market share for Qantas immediately neared 90%, with the relatively new budget airline Virgin Blue holding the remainder. In order to capitalise on this event, Qantas ordered Boeing 737-800 aircraft — obtaining them a mere three months later. This unusually short time between order and delivery was possible due to the terrorist attacks in the United States on 11 September — the subsequent downturn in the US aviation market meant American Airlines no longer needed the aircraft they ordered. The delivery positions were reassigned to Qantas on condition the aircraft remained in American Airlines configuration for later possible lease purposes.

At the same time, Virgin Blue announced a major expansion in October 2001, which was successful in eventually pushing the Qantas domestic market share back to 60%. To prevent any further loss of market share, Qantas responded by creating a new cut-price subsidiary airline Jetstar. This has been successful in keeping the status quo at around 65% for Qantas group and 30% for Virgin Blue with other regional airlines accounting for the rest of the market. On 13 December 2004, the first flight of Jetstar Asia Airways took off from its Singapore hub to Hong Kong, marking Qantas' entry into the Asian cut-price market. Qantas owns 44.5% of the carrier.

Qantas has also expanded into the New Zealand domestic air travel market, firstly with a shareholding in Air New Zealand and then with a franchise takeover of Ansett New Zealand. In 2003, Qantas attempted and failed to obtain regulatory approval to purchase a larger (but still minority) stake in Air New Zealand. Subsequently Qantas stepped up competition on the trans-Tasman routes, recently introducing Jetstar to New Zealand. British Airways sold its 18.5% stake in Qantas in September 2004 for £425 million, though keeping its close ties with Qantas intact.

Qantas had also developed a full-service all economy international carrier focused on the holiday and leisure market, which had taken on the formerly used Australian Airlines name. This airline ceased operating its own liveried aircraft in July 2006, with the staff operating Qantas services before being closed entirely in September 2007, with the staff joining the new Qantas base in Cairns.

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