Qantas is in the top 10 of global airlines by size.
Overhead cost per passenger declines as fixed cost is spread over more passengers.
Qantas also gets better deals from suppliers for aircraft, fuel, etc
Strategic alliances (oneworld) allow Qantas to get the benefits of a larger route network, while remaining independent.
Standardisation:
The more variations to Qantas' services like the types and frequency of routes, the higher production cost per unit. Qantas has recently cut back on some services to destinations to reduce costs.
Technology:
Qantas uses the latest digital computer technology for online booking, ticketing and check-in, eliminating the need for Qantas to have customer facing staff. Newer planes also reduce fuel and maintenance costs.
Waste Minimisation:
Minimising waste helps lower production costs. Qantas has recently achieved electricity, water and waste reductions through various measures such as recycling, energy efficient lighting, water saving devices, energy efficient materials and sustainable design.