QANTAS Airways LimitedAirline Update - AGIFORS 2002

Andrew Fuccilli

Manager Network Operations Systems

• Against worldwide aviation trend, QF required to expand rapidly to cater for demand in Australian market

Australian Market• Traditionally 2 airline dominated - Qantas (QF) & Ansett (AN)• Beginning 2001 - QF & AN plus Virgin Blue & Impulse

• fierce price war ($33 fares SYD-MEL)• QF domestic profit for 00-01 halved - first drop in overall profit since privatisation

• June 2001 - Impulse acquired by QF

• Sept 13 2001 - AN ceased operations (unrelated to Sept 11)• QF carried 50,000 AN pax free + 65,000 at discounted rates• Impact of Sept 11 on QF International operations allowed aircraft to be reassigned to domestic operations

• Massive fleet expansion required– Nov 2000 QF announced purchase of A330 & A380

– Able to acquire 8 B737-800 aircraft originally intended for American Airlines (another 7 to be delivered this year)

• QF now holds 85% of Australian domestic market

B747-438 - 25B747-338 - 6 (to be refurbished)B747-238B - 4 (to be retired)B767-338ER - 29B767-238ER - 7B737-476 - 22B737-376 - 17B737-800 - 7B717-200 - 8----------------------------------------------------------Total 125

New 747-400ER planned for Nov 2002More single class B717-200

Current Core Fleet (as at May 2002)

QantasLink Regional Operation• 5 wholly-owned subsidiary carriers operating regional routes within Australia• 65 aircraft (BAE 146, Dash 8, Shorts SD360, Beechcraft 1900D)

• Low-cost carrier targeting Asian market• Operating on routes not profitable for QF• Low-cost only from an operating perspective - lower cost-base than

QF• Full service 2 class airline• Initially 4 767-300 aircraft with plans to expand to 12

Australian Airlines Introduction

Other Initiatives

• Move to Amadeus (following British Airways)• CityFlyer Services (SYD-MEL & SYD-BNE)

– dedicated gates, aircraft, check-in– focus on punctuality for business travellers

• Introduction of sleeper seats in business class for International operations

• SMS Flight Delay service• New IT Strategic direction

• Disruption Management

Why Am I at AGIFORS?

NOT because it is in Rome and my family is of Italian origin!

• Flight Dispatch

• Operational Message Processing