Overview of Qantas Airways Limited

This document provides an overview of Qantas Airways Limited, an Australian based corporation that operates domestically and internationally. It discusses the company's operations, segments, alliances, and market share. It also provides information on the company's revenue, expenses, assets, liabilities, equities, and cash flows. The document includes references for further reading.

Report

Table of Contents
1. Overview of the company .......................................................................................................3
5. Content of the final reports .....................................................................................................3
REFERENCES................................................................................................................................1

1. Overview of the company
Qantas Airways Limited is seen as an Australian based corporation that operates its
business domestically and internationally. It is mainly engaged in operation of an international
and the domestic air transportation facilities and is said as the operation of the frequent flyer in
terms of the loyalty program. Majorly its segment includes Qantas Domestic, Jetstar group,
Qantas Loyalty, Qantas international and the corporate. It is the number one or leading Airline
company in Australia in Asia pacific region and is said as the tenth largest Airline company
across the globe.
Qantas connects the Australia to around 81 destinations in the other 40 countries globally
and operating as in providing extensive domestic related services in New Zealand as well as
Australia. Along with its flagship line, company operates its business in various regional airlines
in the Australia and is a partner in the budget start-up in Singapore (Overview of Qantas, 2018).
Qantas and its related regional subsidiaries carries out more than or higher than 30 million
passengers for a year. The company maintains large number of the alliances and the code share
arrangements, it is the member of one world global alliance in Airline that is led by an American
Airlines and the British Airways group that in turn is seen as the largest shareholder along with
18% of interest. The location of the company is stated as Winton, Queensland, Australia
where it commenced with its operations in the year 1921 in month of march. There are several
hubs of Qantas that includes Brisbane, Sydney, Melbourne Airport along with secondary hubs
that includes Adelaide and Perth Airport. Qantas is the large size organization having large
number of employees around 26150 and revenue of value $ 17.06 billion with an operating
income of $ 1.79 billion. An enterprise is having 65% of the market share in Australian domestic
market and in carrying 14.9% of all the passengers who are travelling in and outside the
Australia.
5. Content of the final reports
Revenue- From an annual report of the company it has been reviewed that major revenue
of Qantas is been generated from the passenger and some part of the income from Freight and
other types of the income (Juárez, Pérez and Useche, 2017). This is because as the firm is
operating in Airline business so revenue from the passengers is counted as the main business
sales or operative revenue for an entity. Over the two year that is from 2017- 2018, revenue of

the company is seen as increasing resulted as $16057 million in 2017 and $17060 million in
2018. This shows that more and more passengers are getting attracted towards availing the
services of Qantas.
Expenses- By reviewing an income statement in the annual report of the corporation it
has been analysed that expenses are increasing from one accounting period to another. The major
expenses are incurred in relation to manpower and the staff amounting to $4033 in 2017 and
$4300 million in 2018. As it is an airline business so large staff and the manpower is required
with high cost of training so it is seen as the high amount of expenditure. The other higher
expenses involves aircraft operating variable and the fuel related disbursements which is the part
of the Airline business and has to be paid by Qantas.
Assets- The assets of the company includes current and the non-current assets which
reflects that in terms of current assets, cash and cash equivalent are seen as of the highest value
which means better liquidity position of an enterprise (Bhardwaj and Gupta, 2018). However, in
respect of non-current assets, property, plant and the equipment are stated as of highest value
which means that in developing the Aircraft, more of expenses are incurred in plant, equipment
and the property resulted as $12253 in the year 2017 and $12851 million in the year 2018.
Liabilities- The liability segment in the balance sheet of Qantas includes current and the
non-current liabilities. In comparison to other liabilities, revenues received in advance as of
current liability are highest, this is due to the payment made by the customers in advance before
availing services as early booking and pre-payment offers them a great discount. Referring to
non-current liability, interest bearing expenses are counted as of larger amount as Qantas has
taken large debts for its large investment projects or the proposals.
Equities- The issued capital in this section is seen as of highest because Qantas had
issued large capital to the shareholders. This means that the company prefers for issuing more
and more shares to stakeholders so that large funds could be generated for making investment in
the profitable projects and channels.
Cash inflows- In context of an operating activity the cash inflows from the customers are
higher as higher revenue and income is been generated from passengers (Drake, Hales and Rees,
2019). However, under an investing activity, proceeds from the sale of property, equipment and
the plant is seen as the only cash inflows. Moreover, in the financing activity, proceeds or
income received from the borrowings that is income generated from the amount of the borrowed

funds is been reflected as the cash inflows. It has also been viewed that cash inflows of Qantas
are more than cash outflows which indicates better cash liquidity and position of the company.
Cash outflows- As viewing the cash flow statement of Qantas it is identified that under
operating activity the the highest amount of the payment is made to employees and the suppliers
against salaries and the material supplied (Annual report of Qantas, 2018). In an investing
activity large amount of the payment is been made for purchasing equipment, assets and the
plants with respect to the Aircraft machinery, engines and spare parts. Further, in financing
activity large amount of the cash outflows relates to the repayment of the borrowed amount as
high amount of borrowings has been taken by the firm so it is subjected to be the highest amount
with respect to the financing activity and outflows from the business.

REFERENCES
Books and journals
Bhardwaj, M. A. and Gupta, R., 2018, October. Qualitative analysis of financial statements for
fraud detection. In 2018 International Conference on Advances in Computing,
Communication Control and Networking (ICACCCN) (pp. 318-320). IEEE.
Drake, M. S., Hales, J. and Rees, L., 2019. Disclosure Overload? A Professional User
Perspective on the Usefulness of General Purpose Financial Statements. Contemporary
Accounting Research. 36(4). pp.1935-1965.
Juárez, F., Pérez, C. H. and Useche, A., 2017, October. Just in time strategy and profitability
analysis in financial statements. In Proceedings of the International Conference on
Industrial Engineering and Operations Management (IEOM), IEOM Society, ed., IEOM,
New Britain, USA (pp. 1363-1372).
Online
Annual report of Qantas. 2018. [Online]. Available through:
<https://investor.qantas.com/FormBuilder/_Resource/_module/doLLG5ufYkCyEPjF1tpgy
w/file/annual-reports/2018-Annual-Report-ASX.pdf>
Overview of Qantas. 2018. [Online]. Available
through:<https://www.reuters.com/companies/QAN.AX>
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