Auditing assignment - Qantas
Q1 Executive Summary
(a).Organisational structure
Qantas Airways Limited 's core business is passenger transport, air freight services, sale of holiday tours and associated support activities including catering, information technology, group handing and engineering and maintenance (Qantas n.d.). As a consequence of the revised structure that commenced in December 2013, the Qantas Groups split its international and domestic operations into two separate corporate entities (Qantas 2014a). This has meant that Qantas is now considered to have a divisional organisational structure, being formed by five business segments: Qantas Domestic, Qantas International, Qantas Freight, Jetstar and Qantas Loyalty.
Conduct of Operations
The management function of the Qantas Group is to separate its international and domestic arms, each with its own CEO heading up operational and commercial functions, in order to ensure that they can independently run each business based on its specific priorities and market conditions (Flynn 2014a).
Domestic operations
Qantas (2014a) says its group domestic operations generated EBIT profit of $30 million for the FY 2014. The company adopts a dual-brand strategy of two only profitable domestic airlines, Qantas domestic (including QantasLink) and Jestar. Whilst Qantas domestic is focused on offering their passengers the highest frequency of flights and a variety of routes to retain a yield premium, Jestar is working to sustain its low-cost case over its competition and serve price-sensitive consumers. Qantas continues to invest in products and services with the refresh of Airbus A330 and Boeing 737-800 fleets (Flynn 2014b), in order to continue to leverage its flexibility in the domestic market. Moreover, they 'establish relationships with manufactures to adjust capital expenditure in line with financial performance and right-size its fleet and network' (Qantas 2014a). Overall, the domestic division is trying to maintain its leading
(a).Organisational structure
Qantas Airways Limited 's core business is passenger transport, air freight services, sale of holiday tours and associated support activities including catering, information technology, group handing and engineering and maintenance (Qantas n.d.). As a consequence of the revised structure that commenced in December 2013, the Qantas Groups split its international and domestic operations into two separate corporate entities (Qantas 2014a). This has meant that Qantas is now considered to have a divisional organisational structure, being formed by five business segments: Qantas Domestic, Qantas International, Qantas Freight, Jetstar and Qantas Loyalty.
Conduct of Operations
The management function of the Qantas Group is to separate its international and domestic arms, each with its own CEO heading up operational and commercial functions, in order to ensure that they can independently run each business based on its specific priorities and market conditions (Flynn 2014a).
Domestic operations
Qantas (2014a) says its group domestic operations generated EBIT profit of $30 million for the FY 2014. The company adopts a dual-brand strategy of two only profitable domestic airlines, Qantas domestic (including QantasLink) and Jestar. Whilst Qantas domestic is focused on offering their passengers the highest frequency of flights and a variety of routes to retain a yield premium, Jestar is working to sustain its low-cost case over its competition and serve price-sensitive consumers. Qantas continues to invest in products and services with the refresh of Airbus A330 and Boeing 737-800 fleets (Flynn 2014b), in order to continue to leverage its flexibility in the domestic market. Moreover, they 'establish relationships with manufactures to adjust capital expenditure in line with financial performance and right-size its fleet and network' (Qantas 2014a). Overall, the domestic division is trying to maintain its leading