Qantas was founded in Winton, Queensland on 16 November 1920 as Queensland and Northern Territory Aerial Services Limited by Paul McGuinness, Hudson Fysh, FergusMcMaster and Arthur Baird. His first aircraft of Avro 540K purchased for £ 1425. This aircraft has a cruising speed of 105 kilometers per hour (65 mph) and carried a pilot and two passengers.

A 84-year-old pioneer Alexander Kennedy was the first passenger, receiving ticket number one. The airline operates flights on government-subsidized air mail Australia, connecting the western end of the rail in Queensland.
Between 1926 and 1928, Qantas built seven De Havilland DH.50 and one DH.9 under license in Long reach hangar. In 1928 a chartered Qantas aircraft made its first flight the Royal Flying Doctor Service of Australia, took off from Cloncurry.

In 1934, QANTAS Airways Limited and Imperial Britain (the pioneering British Airways) formed a new company, Qantas Empire Airways Limited. Each partner held 49%, with two percent in the hands of an independent arbitrator.

The new airline began operations in December 1934 flying between Brisbane and Darwin using two wing aircraft DH.50 and DH.61. QEA flew out of the country since May 1935, when the expanded flight from Darwin to Singapore using de Havilland DH.86Commonwealth Airliners. Imperial Airways operates flights to London overall. In July 1938, this operation is replaced by a weekly flight aircraft using Shorts S.23 Empire Flying Boats.

Flights Sydney to Southampton takes nine days, with passengers to stay at the hotel at night. One year after the flight is operated; the route is profitable and 94% of its flights on time. This service ended after Singapore fell in February 1942. Enemy attacks and accidents destroyed half of the ten aircraft, when most of the fleet was taken over by the Australian government for the war.

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