Fergus McMaster was a wealthy grazier who took little convincing about the benefits of aviation. He was crossing the sandy bed of Queensland's Cloncurry River when his car broke an axle. Paul McGinness helped repair the vehicle and the two struck up a friendship. Back in Brisbane, McGinness and Fysh outlined to McMaster their plans for an air service, beginning with joy rides and air taxi trips. McMaster, fired with enthusiasm, convinced business acquaintances to invest with them.
With their former flight sergeant Arthur Baird as aircraft mechanic, Fysh and McGinness travelled to Mascot Aerodrome, Sydney, where they ordered two Avro aircraft. (The order for one was later cancelled.) The purchase agreement, dated 19 August 1920, was in the name of The Western Queensland Auto Aero Service Limited. A new company name was later adopted, Queensland and Northern Territory Aerial Services Limited, which was quickly abbreviated to the acronym 'QANTAS'.
Papers formally establishing Qantas were signed in the Gresham Hotel, Brisbane, on 16 November 1920. The company, based in Winton, was registered with Fergus McMaster as Chairman.