the sum of us - qantas...in 2009/2010 the qantas group delivered a strong result and we advanced our...
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TheSumof Us
Annual Review 2010
In 2009/2010 the Qantas Group delivered a strong result and we advanced our plans for a successful and sustainable future. Working together, all parts of our diverse business contributed to our performance. This report is the sum of all our efforts. The sum of us.
1—TheSumofUs12—ForwardThinking14—Chairman’sReport16—CEO’sReport18—FinancialPerformance
20—SafetyFirst24—SustainableOperations28—StrongComplementaryBrands —Qantas —QantasLink —QantasFrequentFlyer —Jetstar —QantasFreight —qantas.com —QantasAviationServices —JetsetTravelworldGroup
40—GreatPeople44—SuperiorInfrastructure —Fleet —Engineering —Catering —Airports52—CaringforCustomers58—EnvironmentalResponsibility62—GivingBack66—BoardofDirectors68—FinancialCalendar
Contents
TheSumof Us
1 AnnuAl review 2010
Forward Thinking
For 90 years Qantas has been a global aviation innovator, driving higher performance in everything from technology and flying records to product and service leadership. In 10 years the Qantas Group will celebrate a century of aviation forward thinking that makes us the world’s most experienced airline.
the qAntAs GRoup 2
Safety First
Safety is our first priority. It underpins everything that we do. Our unwavering commitment is to world’s best safety practices and reporting in all aspects of our business, from operational safety to the physical security and well-being
of our customers and our people.
3 AnnuAl Review 2010
the qAntAs GRoup 4
Strong Complementary Brands
With Qantas and Jetstar we have two strong and complementary brands, and a unique ability to respond to
changing market conditions. We aim to make each airline the best in its class. And we have the flexibility to make flying decisions based on the airline, aircraft and route
that will deliver the best outcomes for our customers and returns to our shareholders.
5 AnnuAl Review 2010
Sustainable Operations
We’ve been part of Australian life for 90 years, and we’ve made an annual profit every year since privatisation in 1995. Our shareholders, customers, employees and the Australian community look to us for the highest standards of safety, service, citizenship and environmental responsibility and we aim to meet those expectations year after year.
the qAntAs GRoup 6
Superior Infrastructure
Superior infrastructure is fundamental to Qantas Group operations. We have a fleet of 254 aircraft and an ambitious fleet renewal program. Our engineering
and maintenance capabilities ensure safe, reliable performance. We have 14 stylish Qantas international
lounges, while at home we are the only airline to offer multi-tiered domestic lounges.
7 AnnuAl Review 2010
Great People
The Qantas Group employs 35,700 people across 250 unique roles, with 93 per cent of them based in Australia. Our goal is to deliver a great place to work, provide training and development for our people, and harness their passion in support of our brands.
the qAntAs GRoup 8
Caring for Customers
More than ever we are investing in understanding what our customers want, and delivering more than they
could imagine. Qantas is redefining the modern premium airline brand – and, with our Next Generation Check-in,
streamlining and simplifying the airport experience.
9 AnnuAl Review 2010
Environmental Responsibility
Responsible environmental behaviour is a strategic imperative. From innovations in fuel conservation and flight planning to onboard recycling, care for the environment is integrated with the Qantas Group’s business strategy. We also strongly encourage positive environmental action in the community.
the qAntAs GRoup 10
Giving Back
At Qantas we consider good corporate citizenship part of our role and responsibility as the national carrier.
In a spirit of partnership, we support Australian culture and sport, charitable organisations, regional
communities and Indigenous advancement, promoting excellence and equal opportunity.
11 AnnuAl Review 2010
Invented Business Class travel
1979
Qantas employee Jack Grant invented the inflatable aircraft escape slide-raft
1965
World’s longest flight undertaken by a commercial jet aircraft: London-Sydney non-stop with a B747-400
1989
Pioneered flying operations over the Silk Road route, saving 30 minutes’ flying time, after six years’ planning with the Civil Aviation Authority of China and Airservices Australia
2001
First airline to offer round-the-world services via both hemispheres
1958
Founded in Queensland on 16 November
1920
Forward Thinking
Qantas has been pursuing innovation in technology, flight operations and product and service for 90 years. Forward thinking has always been, and always will be, part of our culture. This timeline highlights our major achievements during that period – many of them ‘firsts’ in
2002First airline to introduce Rockwell Collins Multi Scan radar on B747-400ERs to detect the ice content of storms and deliver smoother flying
1995 Leading role in the use of Future Air Navigation system to optimise routing and save fuel
1980s Leading role in developing Extended Twin Operations with the B767-200ER fleet, dramatically improving reliability, saving fuel and reducing flight times
1974 World record for largest passenger load, evacuating 674 passengers with 23 crew via B747 after Cyclone Tracy devastated Darwin
1959First airline outside the United States to fly Boeing 707 jets and to take passengers by jet across the Pacific
1943-45 Flew the world’s longest route of 28 hours from Perth to Colombo (Sri Lanka) using Catalina Flying Boats, undertaken in almost total radio silence to avoid Japanese attack: 271 safe crossings, 858 passengers, nearly a million miles
the qAntAs GRoup 12
the aviation industry – and the milestones we are set to reach over the next 10 years, as we move towards our centenary. Continued innovation will be essential to meet the needs of customers and deliver value for shareholders.
“The task for this 21st century aviation generation… is to create the infrastructure of the sky. We have all the elements in Australia for the world’s best air traffic management regime... now is the time to make Australian skies the safest, smartest and most environmentally sustainable on the planet.”AlAn Joyce, sAfeskies confeRence, cAnbeRRA, octobeR 2009
Only airline to offer Premium Economy with in-arm inflight entertainment
2008
First airline to offer ‘degustation’ First Tasting Menu with Neil Perry cuisine
2007
Next generation flying with the arrival of the first of our B787 fleet
2012
First airline to launch low fare long haul operations with Jetstar
2006
First airline to introduce specialised cabin lighting on long haul flights to promote well-being and reduce jetlag
2003
World record for commercial engine performance with 42,019 hours on-wing (equal to 1,000 return trips to the UK) with a Qantas General Electric CF6-80C2 engine installed on a B747-400 aircraft for nine years
2008
2008 Achieved a ‘perfect flight path gate to gate’ with the inaugural A380 service between Los Angeles and Melbourne using Required Navigation Performance and air traffic management to save thousands of kilograms of carbon emissions
2008 Introduced the Qantas Airbus A380, the world’s first passenger aircraft cabin wholly conceived by one acclaimed designer: Marc Newson
2006 First airline to perform a landing using the satellite technology-based Global Landing System with a B737-800
2004 First full service airline to successfully launch a budget airline, Jetstar, with the largest first day of commercial sales (100,000 fares) in aviation history
2010 Introduced a new era of domestic flying with Next Generation Check-in
2020 Centenary of Qantas
13 AnnuAl Review 2010
IampleasedtoreportthattheQantasGroupdeliveredagoodresultfor2009/2010andlaidthegroundworkforcontinuingandsustainablesuccess.
HighlightsHighlightsoftheyearwere:—UnderlyingProfitBeforeTax
of$377million—Revenueof$13.8billion—Operatingcashflowof$1.3billion—Cashheldatyearendof$3.7billion
In2008/2009theGroupstoodoutintheglobalaviationsectorbyrecordingaprofit,duetoitsdecisiveresponsetotheglobalfinancialcrisis.ThisyeartheGrouptrebledthatprofitbytakingrapidadvantageofimprovingconditions,andbymaximisingthestrengthsofQantasandJetstar,itstwocomplementaryflyingbrands.
Key factorsKeyfactorsintheresultthisyearincluded:—ArobustperformancebyQantas,which
wasAustralia’smostprofitableandpunctualdomesticairline,andwhichachievedasignificantlyimprovedinternationalperformancedespiteglobaluncertaintyandtheimpactofthevolcanicashdisruptions
—ArecordprofitbyJetstar,whichgrewpassengerrevenueby21percentandincreasedinternationalcapacityby50percent
—ArecordperformancebyQantasFrequentFlyer,withall-timehighsincustomersatisfactionandbenefitsderivingfromenhancedalliancerelationships,notablywiththeWoolworthsGroup
—Industry-leadingfinancialstrength,includingcashholdingsof$3.7billion,increasedoperatingcashflow,andthebestcreditratingofanyairlineintheworld
—Continuinginvestmentinamodernandsimplifiedfleet,witharound160aircraftonorder,andanaverageofonedeliverypermonthplannedforthenexteightyears
—Continuinginnovationandimprovementinthecustomerexperience,includingtheindustry-leadingNextGenerationCheck-in
—Significantprogresstowards$1.5billioninpermanentsavingsoverthreeyearsthroughtheQFutureprogram,with$533millioninsavingsachievedthisyear,alliedtoabusinesstransformationandsimplificationagenda
Industry context and outlookIn2009/2010globaloperatingconditionsimprovedfromhistoriclows,withrecoveryindemandinboththepassengerandfreightmarkets.Internationaldemandimprovedacrosspremiumandleisuresectors.Domesticbusinessdemandalsoreturnedstrongly,althoughdomesticleisuredemandcontinuedtoberelativelysoftlateinthefinancialyear.
Lookingahead,theAustraliancommercialaviationsectorwillremainhighlycompetitive,bothdomesticallyandinternationally.Aviationisacomplexindustry,subjectbothtolong-termeconomiccyclesandshort-termshocks,withhighfixedcostsandlonginvestmentleadtimes.Theindustryisglobalisingunevenly,andstillsuffersovercapacityandhighstart-upanddrop-outrates.
Tosucceed,theQantasGroup’stwoflyingbrandswillbecompetingvigorouslyeverydayintheirdifferentmarketsegments–thefullserviceQantasandthelowfaresJetstar.
Reporting clarity ThisyeartheGroupintroducedanewprimaryreportingmeasure:UnderlyingProfitBeforeTax(PBT).Thisisanon-statutorymeasurewhichisnowbeingusedbytheBoardofDirectorsandExecutiveCommitteetoassessandimprovetheperformanceoftheGroup.UnderlyingPBTmakesiteasierfortheGroup–anditsshareholders–toidentifyhowwelltheGroupmanagesthosebusinessfactorsitcontrols,byeliminatingthedifficultystatutoryaccountingtreatmentsposeinrecordingone-offandhigh-changefactorssuchashedgevolatilityincurrenciesandfuel.
Chairman’s Report
This year the Qantas Group trebled last year’s profit by taking rapid advantage of improving conditions, and by maximising the strengths of Qantas and Jetstar, its two complementary flying brands.
the qAntAs GRoup 14
Dividend approachTheBoardrecognisesthedesirabilityofreturningadividendtoshareholderswhereverpossible,andcarefulconsiderationwasgiventothismatter.OverthecomingperiodtheQantasGroupwillneedtoserviceitsveryhighcapitalrequirements,andretainingahighcreditratingremainsapriority.Theeconomicoutlookandcompetitivesituationwillcontinuetobechallengingandpotentiallyvolatile.Withthisinmind,theBoardhasdeterminednottodeliveraninterimorfinaldividendin2009/2010,andfuturedividendswillcontinuetobeassessedagainstongoingearningsperformanceandcapitalrequirements.
People OnbehalfoftheBoardofQantas,IwanttothankallmembersoftheQantasGroupfortheireffortsthroughtheyear.Itravelalot,whichmeansIoftengettoseetheirdedicationatfirsthand,acrossAustraliaandthroughoutourinternationalnetworks.Thegoodresultsthisyearareinlargeparttestamenttotheimmensededicationandskillourstaffdisplaydayindayout.Theyhavemuchtobeproudof.
LEIGH CLIFFORD, AO
15 AnnuAl Review 2010
IthasbeenabusyandproductiveyearattheQantasGroup.
Ourstrategyistocreatetwoairlines–QantasandJetstar–thatarethebestintheirclass,andwhichwillcontinuetogiveustheflexibilitytorideeconomiccycles,leveragedifferentsectorsofthemarket,andmaintainarobustoperatingcashflow.Ourfleetstrategyreflectsthisapproach.
WithMarcNewson’ssignaturedesignandadedicatedcrewinallcabins,theQantasAirbus380hasbecomeadestinationinitsownright.Wewillhave10inserviceby2011,andafurther10comingintoserviceoverthenextfiveyears.
Wehavealsobroughtforwardourorderfor50Boeing787s,withthefirstnowdueinmid-2012.Wewillbethesecondlargestairlinecustomerforthesenew-eraaircraft–offeringimprovedtechnologies,loweroperatingcosts,fuelefficiencies,andgreaterpassengercomfort.
Thefirst15B787swillgotoJetstarInternational,enablingthetransferofA330-200stoQantasandtheearlierretirementofeightQantasB767-300ERs,effectivelyrenewingbothairlines’fleets.
CEO’s Report
Our strategy is to create two airlines – Qantas and Jetstar – that are the best in their class, giving us the flexibility to ride economic cycles, leverage different sectors of the market, and maintain a robust operating cash flow.
the qAntAs GRoup 16
Qantas Itisnow90yearssinceQantasstartedinoutbackQueensland,andweremainhardatworktomakeajourneywithQantasafreshandenjoyableexperienceforeachnewgenerationoftravellers.
Inthepastyearwehaveintroducedmorefeaturestogiveourcustomersgreatercontrolandflexibility.Thisincludesexitrowseatpurchase,additionalbaggageallowancepurchase,advancedseatselectionandcombinedbookingsforflights,carhireandtravelinsurance.
WearesuccessfullyintroducingNextGenerationCheck-in,anditwillprogressivelyberolledoutaroundmajordomesticports.WithournewQCardReaders,NextGenerationCheck-inwillbeassimpleasaflickofacard,andwe’realsosimplifyingthebagdropprocess.
OurQantas‘refresh’projectisaboutredefiningtheQantassignatureathomeandintheworld–onethatismodern,caring,distinctive,contemporaryandconsistent.
Cabin:WearecreatingaseamlessBusinessClassoffering.We’llbeinvestingmillionstoupgradethecabinandseatsonnineB747s,whichwillbringtheminlinewithourA380s.OverthecomingyearourdomesticfleetwillberevampedwithanewlookBusinessClassproduct.
On-board: NewdomesticBusinessClassmenuswillbedesignedbyourQantasconsultantchefNeilPerrytobemoreconsistentwithourinternationaloffering.Anewinflightentertainmentformatisalsobeingintroduced.
Lounges: Wehaveoneoftheworld’sbestdomesticairlinenetworksandourinternationalloungesdesignedbyMarcNewsonsetthebenchmarkforglobalexcellence.WewillbeundertakingasignificantrefreshofQantasClubloungefacilities,withourdomesticBusinessloungesmodelledonourinternationalBusinesslounges.NeilPerry willdesignthefoodmenus.
OurenhancedQantasFrequentFlyerprogramnowhas7.2millionmembersandcontinuestooffermajoropportunitiesfortheGrouptowinandrewardloyalcustomers.
JetstarWithJetstar,thegoalistocreatethebestlowfaresairlineintheworld,whichisallaboutsustainablegrowthandbeingtruetothepositiveandenergeticvaluesofthebrand.Forexample,thisyearJetstarwasthefirstairlineintheworldtotrialtheiPadasaninflightentertainmentsystem.
Jetstarhasnowcarriedmorethan50millionpassengerssincetakingoffin2004,withmorethanhalfofthemtravellingforunder$100.ItisnowwellplacedinAsiathroughJetstarAsia,whichisbasedinSingapore,andJetstarPacificinVietnam.Ithasarealopportunitytoachievemore.
Our peopleThisyearourpeoplecontinuedtoexcel:fromexceptionalcustomercareduringthevolcanicashcrisis,throughtodeliveringaworldfirstnewcheck-insystem,theyhavegoneaboveandbeyond.OnbehalfoftheleadershipteamIwanttoacknowledgeandthankeveryonefortheirefforts.
ALAN JOYCE
17 AnnuAl Review 2010
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In2009/2010theQantasGroupdeliveredastrongresultanddemonstratedthatitiswell-positionedforfuturegrowth.UnderlyingProfitBeforeTax(PBT)tripled.Liquiditywasstrongwith$3.7billionincash,supportinganambitiousongoingprogramofinvestmentinfleet,productandservice.Revenuewas$13.8billionandoperatingcashflow$1.3billion.Significantcostsavingswereachieved.TheQFutureprogramexceededitstargetwithbenefitsof$533millionandunitcosts(excludingfuel)weredownby4.3percentacrosstheGroup.
TheGroupcontinuedtodeliveragainstitsstrategicpriorities:—Safetyasnumberonepriority—Optimisingthetwoflyingbrands:
QantasandJetstar—Transformingtheinternationalbusiness—Profitablybuildingon65percent
domesticmarketshare—Enhancingthecustomerexperience—Maximisingthevalueofportfolio
businessesandinvestments—EngagingpeopleanddevelopingtalentThisyear’sresultreflectsthesuccessoftheQantasGroup’stwoairlinebrandsandportfoliostrategy.Withallsegmentsprofitable,theGrouphasaplatformforsustainablegrowthasoperatingconditionsimprove.
Revenue $13.8 billionUnderlying Profit Before Tax $377 millionOperating cash flow $1.3 billionCash held at year end $3.7 billion
Financial Performance
the qAntAs GRoup 18
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*Figures for financial years 06, 07, 08 are based on statutory PBT.
19 AnnuAl Review 2010
Flying safelyTheQantasGroupisinternationallyrespectedforitsdedicationtosafeflyingoperations.
QantascarriestheInternationalAirTransportAssociation’s(IATA)OperationalSafetyAuditCertificationandissubjecttorigorousbiennialreviewstosecureitsrenewal,mostrecentlyduring2010.
EachyearQantasinvests$1.4billioninengineeringandmaintenancetoensurethatthehigheststandardsofoperationalsafetyandperformanceareupheld.Ouron-timeperformanceandreliabilityaretestimonytotheworkdonebyourengineeringworkforceandtheexpertiseofourpilots.
Werespondconservativelytoanymechanicalorperformanceissueandalwaysputsafetybeforeschedule.Qantasmeets,andinmanycasesexceeds,allitsobligationstoregulators,includingtheCivilAviationSafetyAuthority(CASA)andmanyotherinternationalauthorities.AswithIATA,theseregulatorsauditQantasthoroughlyandfrequently.
Safety managementIn2009asingleQantasManagementSystem(QMS)wasestablishedcoveringallaspectsofsafety,health,environmentalandsecurityperformance.TheQMSprovidesthestructurerequiredtoachieveongoingimprovementintheQantasGroup’ssafetyperformanceandaconsistentapproachtomanagementandlegislativecompliance.Itisacknowledgedasabest-practicemodelintheairlineindustry.
AcrosstheQantasGroup,air,groundandpeoplesafetypracticesaregovernedbymandatorypoliciesthatapplytoallemployees.Managersandemployeesareexpected‘todemonstrateanddriveagenuinecommitmenttosafety’throughtheirpersonalactionsandbyeffectivemanagementofrisk.Wemeasuresafetyperformanceagainstkeymetricsandrecogniseemployeeswhodemonstratesafetyexcellence.
SecurityTheQantasGroupdoesnotcompromisewhenitcomestothesecurityofouroperations,customersandstaff.WeworkcloselywithAustralianGovernmentagenciesinAustraliaandoverseastoassessandrespondtosecurityissueswhentheyariseandensurethatpolicyandregulatorychangesareimplementedeffectively.
PoliticalissueswiththepotentialtoimpacttheGroup–suchasthecivilunrestinBangkokinearly2010–aremanagedthroughheightenedthreatmonitoringandassessmentprocesses,securitycoordinationonthegroundandoperationalcontingencyplans.
Qantasspecialevents,suchastheFormula1™AustralianGrandPrixandQantasSoccerooseventsinAustraliaandattheFIFAWorldCup,areprotectedbycarefullyplannedsecurityoperations.
Safety is the Qantas Group’s first priority.
At the heart of our business is an unwavering commitment to world’s best safety practices and reporting.
21 AnnuAl Review 2010
Occupational health and safetyTheQantasGroup’sOccupationalHealthandSafety(OHS)programshelpusworktowardsourgoalofzeroinjuriesthrougheffectivesystems,ahealthyandsafeworkenvironmentandastrongsafetyculture.BusinessunitshavetailoredtheOHSmanagementsystemtotheirriskprofilesandoperationalneeds
Ahealthsurveillanceprogrammonitorsworkplaceconditionsandemergingrisks.Thisprogramincludesenvironmentalmonitoringandhealthassessmentsforrelevantemployeegroups.
Performance TheQantasGrouphasbeenusingLostTimeInjuryFrequencyRate(LTIFR)asaprimaryindicatorforOHSperformancesince2001,resultinginan85percentreductionoverthistime.PerformanceindicatorsandtargetsarecontinuallyunderreviewtoensuremanagementhastherightinformationtoimproveOHSperformance.
Commencingin2010/2011,wewilltransitiontoTotalRecordableInjuryandLostWorkCaseFrequencyRatesaspartoftheQantasGroup’scontinuedcommitmenttomoremeaningfulmeasurementofinjurypreventionperformance.ThistransitionaimstoimprovethevisibilityofQantasGoupworkplaceincidents.
Performance highlights:— Lost Time Injury Frequency Rate reduced
from 31.7 (2001/2002) to 4.3 (2009/2010)— No workplace fatalities in 2009/2010
the qAntAs GRoup 22
ForQantas,itshutdownourEuropeanservicesforsixdays,impactingover15,000customers.
WeimmediatelyactivatedourCrisisManagementCentre,whereadedicatedteamofQantasemployeesfromacrossthebusinessmanagedourresponseandrecoveryoperations.
OurIntegratedOperationsCentre(IOC),Qantas’24-hourhubforoperationalplanningandcontrol,wasvitalindevelopingandimplementingacoordinatedapproach.FromtheIOC,Qantas’flightdispatchandflightoperationsteamsandQantasMeteorologyremainedinconstantcontactwiththe
relevantairtrafficcontrolauthoritiesinEurope,monitoringthelevelofashconcentrationandrelatedairspacerestrictions.
Qantas’experienceinplanningandoperatingservicessafelyinareasofknownvolcanicactivity–90percentofourinternationaloperationstraversesuchareas–wasinvaluableininformingourresponsetothesituation.
Throughouttheperiodofdisruption,weputourcustomersfirst.Operationalteamsworldwide,alongwithourspecialistcrisisteams,gavehumanitariansupporttocustomersstrandedawayfromhomeandprovidedassistanceinkeyairports.
Securingaccommodationforthesepassengerswasessential.Intotal,Qantasprovidedover15,000roomnightsinover50hotels,acrosssixcountries.
Aftercarefullyconsideringallrelevantfactors,andcloseliaisonwithEuropeanauthorities,QantasresumedallservicesbetweenEuropeandAustraliaon21April.
Directlyandindirectly,ourcustomershavetoldusthatweexceededtheirexpectations,givingatangibledemonstrationofourcommitmenttocustomercareandsafety.
“I wanted to let you know how impressed I was with your team’s handling of the situation caused by the closure of
UK airspace. Your employees took the time to keep the communication lines open and ensure we were able to travel
back as a matter of priority. It was very much appreciated when I know how much pressure they must have been under.”
Managing the ash cloud
The eruption of the Eyjafjallajökull volcano in Iceland on 15 April 2010 had an unprecedented impact on airlines around the world.
CASE STUDY
JonAthAn nyeqAntAs pAssenGeR
23 AnnuAl Review 2010
We’ve been part of Australian life for 90 years.
Qantas has succeeded for 90 years. Our achievements have been based on scrupulous attention to our core safety values, alertness to business risks and opportunities, a culture of innovation, and a genuine commitment to the Australian community which we serve at home and represent throughout the world, and which has supported our endeavours.
Aviationisrecognisedasoneoftheworld’smostdifficultindustries.Itisnotstraightforward.Evenduringthebestofeconomictimes,producingsuperiorindustryreturnsisachallenge.Aircraftownershipcarriessteep,fixedcosts.Variableexpenses,inparticularfuelandlabour,constituteadisproportionateshareofcostsandcanbedifficulttocontrol.Aviationisverysensitivetothe
upsanddownsofeconomiccycles,andpronetosuddenshockscausedbyenvironment,healthandsecurityissues.Theindustryhasgrappledwithover-capacityformanyyears,withincreasingcompetitionfromlowercostandoftengovernment-supportedairlines.
SoatQantaswenevertakeourpositionforgranted,andourapproachtosustainabilitycontinuestoevolve.
Sustainabilityissues,performanceandprogramsareintegratedthroughoutthisAnnualReview.TheQantasGroup’sRiskManagementFrameworkestablishesacommonapproachforidentifying,assessingandmanagingrisksandthisissupportedbythewiderCorporateGovernanceframeworktoensuretheprotectionandenhancementofshareholdervalue.
Sustainability frameworks
TheQantasGroupdrawsuponvoluntarysustainabilityframeworkssuchastheGlobalReportingInitiativeG3SustainabilityReportingGuidelines.
—Weareincludedinkeyresponsibleinvestmentindexes:theDowJonesSustainabilityIndex(DJSI)AsiaPacific,andtheFTSE4GoodGlobalIndexandAustralia30Index
—In2009Qantascameequal5thintheBestEnvironment,Social,Governance(ESG)disclosurescategoryatthe2009AustralasianInvestorRelationsAwards
Keysustainabilitymetricscanbefoundonpages107to114oftheAnnualReport.SupplementaryinvestorsustainabilityinformationcanbefoundintheQantasDataBook,availablefromqantas.com
25 AnnuAl Review 2010
For the Qantas Group, sustainability is about managing short-term and long-term risks, seizing opportunities, and doing things right for our shareholders, our customers, our people and our community.
Sustainable Operations
Industry challenges and opportunities
Examples of how the Qantas Group responds
Maintainingthehigheststandardsofsafety
—Commitmenttosafetyasfirstpriority,underpinnedbyindustry-leadingpolicies,systemsandtraining
Developingresiliencetofinancialcyclesandrealisinginvestmentopportunities
—Investmentgradecreditratingtolowercostofcapital—Strongcashpositiontolowerriskandprovideforunexpectedevents—Costmanagementprogramstogenerateefficienciesandlong-term
financialsustainability
Adaptingbusinessstrategytomanagechangingeconomicconditions
—Twoflyingbrandsstrategytoadjustcapacity,pricingandmarketsegmentationasthemarketmovesupordown
—QFuturetransformationprogramtoincreaseresponsiveness
Remainingcompetitiveinachallengingandvolatileindustrycontext
—Fleetrenewaltoreducelong-termcostsandgrowrevenues—Strongalliancerelationshipsandstrategicinvestmentstospreadriskand
opportunityacrossmarketsandprovidenetworkdepth—Qantas:innovationstodrivehighersatisfactionandimprovedcustomeradvocacy;
focusontheend-to-endcustomerexperience;improvementsinproductconsistencyacrossthefleetincludingaircraftreconfiguration;brandrenewal;pursuitofefficienciestolowerthecostbase;CustomerCharterestablished
—Jetstar:effectivecapacitymanagement;strongpromotionalcampaigns;ground-breakingstrategicalliancerelationships(egAirAsia);CustomerCharterestablished
Pursuinggrowthopportunitiesinemergingmarkets
—Qantasalliancerelationshipswithcarriersinemergingmarkets(egLANandChinaEastern)
—Jetstarpan-AsianstrategyincludingJetstarPacific(Vietnam)andJetstarAsia(Singapore)
Engagingwithstakeholdersandregulatorsacrossmultiplemarkets
—Strongstakeholderrelations,withactiveparticipationingovernmentandindustryconsultationsandseniorrepresentationinindustryassociations(egIATA)
—ComprehensiveGroupPolicyFrameworkguidingcompliancewithlawsandregulationsinthecountriesinwhichtheGroupoperates
Respondingtounexpectedshocksandcrises
—Purpose-builtCrisisManagementCentrewithdetailedcrisismanagementplans—Scenarioplanningsupplementedbysimulatedcrisistrainingexercises
the qAntAs GRoup 26
Industry challenges and opportunities
Examples of how the Qantas Group responds
Managingcurrencyandfuelpricefluctuations
—Award-winningTreasuryfunction—Hedging,includingoptions,toenableparticipationwhenoilpricesarelow
andprotectionwhenoilpricesarehigh
Exploitingnewtechnologies —BreakthroughproductandserviceinnovationssuchasNextGenerationCheck-in—Commitmenttotechnologicallyadvancedaircraft(egAirbusA380,Boeing787)
Enhancingbrandstrengthandcustomeradvocacy
—Detailedcustomerresearchtodriveimprovementsandadvocacy—Extensiveprogramofsponsorshipsandcharitablegivingthroughstaff
initiativesandQantasFoundation—Industrypartnershipstopromotetourism,businessandevents
Operatinginanenvironmentallysustainablemannerandmanagingcarbonrisk
—Fuelefficiencyprogram,investmentinadvancedtechnologiesandfuelefficientaircraft,airtrafficmanagementleadership,sustainableaviationfueldevelopment
—Advocacyonlegislative,regulatoryandcommercialissues—Carbonoffsetschemes,partnershipswithenvironmentalorganisationsand
engagementwithemployees—Proactiveapproachtocarbonreadinessinadvanceofregulatory/legislative
requirements
Developinghumancapitalandengagingemployees
—Leadershipprogramsfortop100-500managers—TalentprogramsincludingGraduateProgram,EmergingLeaderProgramand
theHarvardLeadershipProgram—Majorapprenticeshipprogramforengineers—QantasOrganisationalBehaviourstodriveculturalchange—Systematicapproachtounionnegotiationsincludingimprovingunionrelations
27 AnnuAl Review 2010
The Qantas Group carried 41.4 million passengers in 2009/2010.
Our two-brand strategy enabled us to respond quickly and decisively to the global economic downturn, and in 2009/2010 helped us achieve renewed growth and lay the foundation for continued sustainable profitability.
AdiverseportfolioofassetsgivestheQantasGroupstabilityofearningsandthecapacitytoapplyleverageindifferentsectorsofthemarket.Aninvestment-gradecreditratingsupportstherenewalofourfleet,infrastructureandproduct,andwemaintainliquiditythroughastrongoperatingcashflow.
Domestically,thecombinationofQantasandJetstariskeytotheQantasGroupmaximisingitsshareoftheAustralianaviationmarket.InregionalAustralia,QantasLinkconnectstourismandbusinesscentresusingastate-of-the-artfleet,acrossanetworkofover50destinations.
Internationally,Qantasisrankedamongtheworld’sleadingairlines,withareputationforoperationalexcellenceandqualityofproductandservice.
TheJetstarbrandisnowestablishedandincreasinglypopularacrossAsia,AustralasiaandtheSouthPacific,withambitiousplanstogrowfurtherasitsfleetincreasesinsize.
Alongsidethecoreflyingbrands,QantasFrequentFlyerandQantasFreightopenupfurtherrevenuestreamsfortheQantasGroup,enhancingourabilitytoadapttochangingmarketconditions.
Qantas’alliancenetworkgivesourcustomersaccesstoarangeofhigh-qualityairlinepartners,providingextensivecodeshareservicesinEurope,NorthAmericaandtheAsia-Pacific.
How the two-brand strategy worksIn2009/2010QantasandJetstaroperatedjointlyon26routesinAustraliaandinternationally.ClearbranddefinitionanddifferingcustomerdemandsmaketheseparallelservicesacompetitiveadvantagefortheQantasGroup.Whereitismoreviableforonecarriertooperatethanboth,wehavetheoptionofdeployingtheairlinethatisbestsuitedtomarketconditionsandpassengerdemand,andwhichwilldeliverthebestreturns.
Domestic routesStrongdemandacrossthespectrum–fromlow-costleisuretopremiumbusiness–allowedJetstartojoinQantason22routeswithinAustralia,includingSydney-MelbourneandMelbourne-Brisbane,helpingprotectourshareofthedomesticmarket.
New ZealandShiftingdemandpatternsintheNewZealanddomesticmarketsawJetstarreplaceQantasinprovidingtheseservices.Meanwhile,bothcarriersoperatetrans-Tasmanflights,cateringtohigh-densitybusinessandleisuretravel.
JapanJetstartooktheleadontheQantasGroupflyingtoJapanastheeconomicslowdownhitthecountry–however,increasingdemandatbothendsofthemarketsawJetstarrelaunchCairns-OsakaflightsandQantasincreasecapacityonSydney-Tokyoservicesin2009/2010.
IndonesiaQantasoperatesservicestoJakarta,Indonesia’scentreofbusinessandgovernment,whileJetstarservesbothJakartaandtheresortislandofBali.
29 AnnuAl Review 2010
Wedeliverworld-classproductandserviceacrossacomprehensivedomesticandinternationalnetwork.Ourapproachtooperationalsafetyisuncompromising.
Qantasoperatesover2,300flightsaweekwithinAustraliaandover600flightsaweekinternationally.In2009/2010wecompletedmorethan150,000flights.
WithinAustralia,improvingdemandhasenabledustoincreasecapacityondomesticroutes,andweareinvestingstronglyinourterminalinfrastructureinkeyhubs,includingCanberraandPerth.TheintroductionofnewAirbusA330-200aircraftintothedomesticnetwork,offeringstate-of-the-artseatingandinflightentertainment,hasimprovedQantas’offeringonkeysectors.
Thephasedintroductionoftheaward-winningA380oncoreinternationalroutestotheUKandNorthAmericahasupgradedbothcapacityandproductontheseservices,andwearealsoincreasingcapacitytoSouthAfricaandonsomeAsianroutes.QantaswasthesecondairlinetobringtheA380intoservice,andtheaircraftremainsthecentrepieceofourfleetrenewalprogram,togetherwiththeBoeing787.NootherairlineoperatestheA380onthetrans-PacificroutebetweenAustraliaandtheUSA.
Ourexpertconsultants–fromdesignerMarcNewsontochefNeilPerry–representthebestofAustraliaandhelpusachievethehigheststandardsofqualityonthegroundandintheair.
In2009/2010weconsolidatedandexpandedourcodesharewithBritishAirways(BA),bothonJointServicesAgreement(JSA)routesbetweenAustraliaandtheUKandonservicesbetweenLondonandEurope.WealsoexpandedcodesharingwithChinaEasterntoincludeservicestoShanghaifromSingaporeand
ondomesticflightswithinChina.Theoneworldalliance,ofwhichQantasisafoundingmember,isratedtheleadingglobalairlinegrouping.
Movinginto2010/2011,Qantasisconcentratingmorethaneveronensuringexemplaryproductandserviceforcustomersineverypartofthebusiness.ThiseffortisaboutdeliveringthebestofQantas,acrossallofQantas.
Bylisteningcarefullytoourcustomers,wearestrivingtoimproveeveryaspectofthetravelexperience.Inthepastyear,wehaveintroducedanumberofnewfeaturestogivecustomersmorecontrolandflexibility,andwearemovingforwardwithamajorprojecttoenhancethepre-flightexperience:NextGenerationCheck-in(seep.54).
RenewingQantasisthekeytodeliveringafreshandenjoyableexperienceforeachsuccessivegenerationoftravellers.Throughtheseinitiativesandothers,weareseekingtomakeQantasagenuinenextgenerationpremiumairline,andtodefineaQantasbrandthatismodern,caringanddistinctive.
Qantas is a full-service, premium carrier. In 2010 we were again named one of the world’s top 10 airlines in the SkyTrax World Airline Awards.
On-time performanceWe continue to lead the domestic market for on-time performance. In 2009/2010 Qantas was ranked first among the major domestic airlines in on-time departures for nine of the 12 months and first in arrivals for 10 of the 12 months. Punctuality and reliability are key factors in customer satisfaction, and we work hard at maintaining the high performance standards Australians expect of us.
the qAntAs GRoup 30
Australian International Design Award 2009 for the A380 Economy SeatBest Long Haul Airline, 2009 ULTRAS (UK Daily Telegraph)Best Airline Australasia, 2009 Skytrax World Airline Awards Aviation CategoryCondé Nast Traveller Innovation and Design Awards 2009 for A380 designBest Airline Accessory, Cutlery for Qantas, Wallpaper Design Award 2009Chicago Athenaeum Good Design Award for the First Suite in 2009SkyTrax Best Premium Economy Class Seat 2010
Thepremiumtravelmarketischangingfundamentally–atrendthatpre-datesthe2008/2009financialcrisis.
TheaircraftconfigurationprogramweannouncedinFebruary2010isourresponsetothisevolvingmarket.Itisa$400millioninvestmentoverthreeyearsinupgradingnineB747aircraftandreconfiguringourA380fleettoenableustomeetforecastchangesinpassengerdemand,maximiseyieldsandgeneraterevenueandinvestorreturns.
Overall,thereconfigurationwillseecapacityequivalenttomorethanthreeB747sbeingaddedtotheQantasfleet.Itwillresultina20percentincreaseperpassengerintheamountofFirstandBusinesscabinspaceavailabletoQantascustomers,whilePremiumEconomycapacityonourlong-haulfleetwillgrowby27percent.
ByupgradingthecabinandseatproductonourB747s,wewillgiveallourlong-haulcustomersaccesstoanA380-standardflightexperience–buildingonoutstandingpassengersatisfactionwiththeA380.
Inadjustingthebalanceofseatingclassesonbothtypesofaircraft,weareensuringthatourinternationalflyingcapacityisbettermatchedtodemandpatternsandmorecompetitiveoncoreroutes.
WeremaincommittedtoFirstClasstravel,and12ofourA380aircraftwillcontinuetofeatureouraward-winningFirstSuites.OntheremainingeightA380andnineB747aircraft,Business,PremiumEconomyandEconomycapacitywillbemorecloselymatchedtomarketexpectations.
AircraftreconfigurationispartofouroverarchingQFutureprogram,abusinessefficiencydrivethatcoversallaspectsofQantasactivity.
Aircraft configuration: meeting customer demand
31 AnnuAl Review 2010
QFutureUnderlying our dedication to high performance is a three-year business transformation program, QFuture, aimed at equipping Qantas for sustainable growth in an increasingly competitive operating environment.
—Reviewingmaintenancecontractsandseekingtochangebusinessmodelsand/orworkwithsupplierstoidentifyimprovementopportunities
—LookingatmateriallogisticsacrossinventoryprocurementandrepairprocessesasameansofconservingcashwithintheQantasGroup
—Reviewingwarehousingrequirementstoensurespaceisoptimised
—ITenablementprojecttoensurethattherightamountofinventoryisstoredintherightlocationaroundthenetworkandimprovinginventoryavailabilitythroughstatisticalanalysis
—Moreefficientapproachtoaircraftutilisationandschedulingwithaircrafttypeandcapacitybetteralignedtodemand
—Reducingthetimeaircraftspendontheground,creatingopportunitiesforincreasedcapacityanddomesticorinternationalgrowth,andmoreeffectiveuseoflongaircraftlayoversoverseas
—In2009/2010upgradedSydney-TokyoservicesfromA330toB747,announcedaseventhdailySydney-JohannesburgserviceandimprovedconnectivityforservicesthroughHongKong
—A330-200aircraftbroughtintoserviceondomesticnetworktoincreasecapacityandupgradeproduct
—DevelopingandleveragingalliancestoimproveQantas’positioninkeymarkets
—IdentifyingopportunitiestoadddepthtoQantas’network,attractnewcustomersandgeneraterevenue
—In2009/2010expandedcodesharerelationshipwithBAonsectorsbetweenLondonandEurope,andextendedJointServicesAgreementwithBAonAustralia-UKroutes
—AddedsevennewChinesecitiestodomesticcodesharearrangementwithChinaEasternandbegancodesharingonChinaEasternservicesbetweenSingaporeandShanghai
—BuildingpartnershipstogrowingmarketssuchasIndia,SouthAmericaandRussia
Engineering supply chain
Aircraft utilisation and scheduling
Alliances
the qAntAs GRoup 32
—Improvingstrategy,governance,organisation,performancemeasurementandreportingacrossQantasProcurement
—Adoptingleadingpracticesourcingandcategorymanagementprocesses
—Implementingnewprocure-to-paytechnologyandprocessestodriveoperationalefficiency
—WorkingtoimprovetheprocurementexperienceforQantasbuyersandsuppliers
—Targeting$100millionincostsavingsfromimprovementsinITservicedelivery
—In2009/2010completeddesktopandend-usercomputertransitiontoFujitsu,resultinginbroaderrangeofproducts,betteruserexperienceandlowerunitcosts
—Commencedroll-outofimprovedemailplatformtoenhanceemployeecommunication,andimplementedchangestoprogramdeliveryservicestobettermeetbusinessdemand
—Structuralandculturalchangestodevelopandengageemployees,infrastructureanddeliverychangestoenhanceoperationalefficiency
—MajorrefurbishmentofQantas’Mascotcampus,commencinginlate2010
—Modern,open-planofficeenvironmentforaconsistentlookandfeelandabetterworkingenvironmentforemployees
—Energyefficientdesignwillsupportenvironmentaltargetsandreduceenergycosts
—CommunalspacestoencouragecollaborationamongQantasemployeesworkinginandvisitingtheMascotcampus
Business Information Solutions (BIS) transformation
Procurement transformation
Office consolidation
QFuturewaslaunchedinJuly2009asanintegralpartofourStrategicandFinancialPlan,targetingbenefitsof$1.5billionoverthethreeyearsto2011/2012.QFutureisabout:—creatingvalueforourcustomers—Optimisingrevenueandmargins—Drivingoperationalefficiency—Engagingourworkforce
ArangeofQFutureprojectsareunderwayacrossallareasofthebusiness.In2010reviewswereintroducedtoidentifyfurtherstrategicinitiatives,highlightimprovementopportunitiesandhelpbusinessareasworktowardsunitcostreduction.Thefirsttworeviews,undertakeninCustomerandMarketingandAirports,resultedinarangeofopportunities
beingaddedtotheQFutureagendaandfurtherreviewsareplannedoverthenextfinancialyear.In2009/2010QFutureprojectsdeliveredbenefitsof$533million,exceedingexpectations.
33 AnnuAl Review 2010
QantasLink plays a vital role in providing air services for communities and businesses in regional Australia.
A$600millioninvestmentin21nextgenerationBombardierQ400regionalaircrafthasdeliveredasuperiorproducttoQantasLinkcustomers,capacitygrowthincoremarketsandenabledexpansionintonewdestinations.
QantasLinkoperates2,000flightsaweekacross54destinationsinAustralia,plusPortMoresbyinPapuaNewGuinea,andcarries4.3millionpassengersayear.
During2009/2010QantasLinkaddedsignificantcapacityinQueenslandandNSW,andlaunchednewservicestoPortLincoln.Wealsolaunchedourfirst
internationalroute,betweenCairnsandPortMoresby,tocatertostrongbusinesstraveldemand.
QantasLink’scommitmenttoregionalAustraliagoesbeyondairservices.TosupportournewAdelaide-PortLincolnservice,wehaveestablishedacabincrewbaseinAdelaide.
QantasLinkhasinvestedstronglyinitsheavymaintenancebaseinTamworth,whichnowhostsQ400maintenance,andwesponsorawiderangeofregionalsportingandculturaleventsacrossAustralia,aswellassupportingthe
QantasGroup’sbroadercontributiontodomestictourismpromotion.Intotal,QantasLinkprovidesdirectemploymentformorethan1,100peopleinmetropolitanandregionalcentres.
TheQantasLinknetwork,andQantasLinkcustomers,arefullyintegratedwithQantas’globalnetworkthroughintrastate,interstateandinternationalconnections;accesstotheQantasbookingsystemandqantas.com;FrequentFlyerandloungebenefits;andaffiliationwiththeoneworldalliance.
Grew the Q400 fleet to 21 flagship aircraft, serving 54 destinations in Australia plus Port Moresby in PNG.
the qAntAs GRoup 34
QantasFrequentFlyermemberscanaccumulatepointsonflightswithQantas,withJetstarandwith25codeshareoroneworldpartnerairlines,drawingontheQantasGroup’sstrategicalliancerelationships.
Morethan480QantasFrequentFlyerpartnersacrossarangeofcategoriesenablememberstoearnpointsinreturnforeverydayexpenditure,suchasgroceries.
Theyear-oldpartnershipbetweenQantasFrequentFlyerandWoolworthsgivesmembersunprecedentedscopetoearnpoints.
During2009/2010QantasFrequentFlyerstrengtheneditslinkswithdirectearncreditcardpartnerssuchasANZ,AmericanExpress,Citibank,CommonwealthBank,DinersClub,NationalAustraliaBank,StGeorgeandWestpac.
QantasFrequentFlyeralsoprovidesmemberswithflexibilityinredeemingpoints,offeringarangeofoptionsforbookingseats.Pointscanbeusedforupgraderequests,transferredbetweenfamilymembersortopurchaseover1,200productsandexperiencesfromtheQantasFrequentFlyerstore.Weareconstantlyseekingnewwaystoincreasethisscale
andflexibilityandenhancethevalueourcustomersgetfromtheirFrequentFlyerearnings.
In2009/2010morethan1.4millionnewmembersjoinedQantasFrequentFlyer,takingthetotalnumberofmembersto7.2million.
The Qantas Frequent Flyer program is a key asset for the Qantas Group. It is Australia’s premier coalition loyalty program, allowing members to combine points from flying, credit or debit card spend and retail spend into a single account.
Reached 7,000,000 Qantas Frequent Flyer members in 2009/2010.
35 AnnuAl Review 2010
SixyearsafterlaunchingAustraliandomesticservicesJetstaroffers2,350flightsaweekwithinAustralia,NewZealand,Asiaandinternationally.TheJetstarnetworkincludes52destinations,andin2009/2010Jetstarcarried14.6millionpassengers(excludingJetstarPacific).
Jetstaroffersmorethan1,300flightsaweekto30destinationsonitsdomesticshort-haulnetworkwithinAustraliaandinternationalservicesfromAustralia.
TheexpansionoftheJetstarbrandintoAsia,fromJetstarAsia’sgrowingSingaporehubandwithJetstarPacificinVietnam,hasseenitdrivetheemergenceoflow-costtravelintheworld’sfastest-growingregion.
Domestic and international expansionInlate2009JetstarannouncedamajorexpansionofdomesticcapacitysupportedbytheadditionoffourA320aircraft,equatingtotheintroductionofanextra700,000seatsperyear.OntheJetstarinternationalnetwork,werelaunchedafourtimesweeklyservicefromCairnstoOsakaandcommencedoperationsbetweenSydneyandFiji,whileourservicestoholidaydestinationssuchasBali,PhuketandHonoluluremainconsistentlypopular.
SincereplacingQantasinoperatingNewZealanddomesticservicesinJune2009,Jetstarhasestablisheditselfrapidlyinthemarket.Weofferupto84returnserviceseachweekbetweenAuckland,
Wellington,ChristchurchandQueenstownandwillhaveeightA320aircraftbasedinNewZealandbyearly2011.
Jetstarcontinuestoplaceastrongfocusonusingtechnologytoimprovethepassengerexperience,withSMSboardingpassestobeintroducedacrossourAustralianandNewZealanddomesticnetworks–addingtoourexistingwebcheck-inoptionsandself-servicekiosksattheairport.WehavealsoannouncedplanstointroducetheiPadforinflightentertainmentacrossournetworkinAustralia,operationsfromAustraliaandpotentiallybeyond.Our10-pointcustomercharter–the‘JetstarCustomerGuarantee’–underlinesourcommitmenttomatchinglowfareswithoutstandingservice.
Jetstar’s growth in Australia, New Zealand and across the Asia-Pacific region reflects the success of our dynamic, low fares brand. We provide efficient, frequent services across a wide network of leisure destinations, operated by a modern fleet.
the qAntAs GRoup 36
Pan-Asian strategyJetstarAsia’soperationshavebenefitedfromsubstantialinvestment,withanadditionalthreeA320aircraftallocatedtoourSingaporehubtosupportpan-Asiangrowth,includingthecommencementofservicesintomainlandChina.Thishassupporteda46percentincreaseinpassengernumbersthroughSingapore.Fromlate2010thisgrowthstrategywillextendtolong-haulflying.NewservicesoutofSingaporetoMelbourneandAucklandwillbeoperatedbytwodedicatedA330aircraftandcreate200newjobs.
Jetstarisalsodevelopingstrategicairlinepartnerships.InJanuary2010weannouncedagroundbreakingnon-revenuepartnershipwithAirAsia.InJune2010wefurthergrewourinterlineagreementswithAirFrance-KLM,enablingseamlessticketingacrossbothairlines’networks–thefirstsuchagreementcoveringallJetstarairlinessignedwithafullservicecarrieroutsideQantas.
Carried more than 50 million passengers since 2004, with more than half travelling for under $100.
37 AnnuAl Review 2010
Qantas Freight
Following the slowdown in global volumes associated with the economic downturn, Qantas Freight has seen a steady recovery in 2009/2010 and is laying the foundations for future sustainable growth.
qantas.com averages eight million visits each month.
Thisisbeingachievedthroughaninternalefficiencyandtransformationprogram–FreightFutures–andarenewedemphasisoncustomerservicedelivery.
In2009/2010wecarriedouta$40millionreplacementoflegacyITsystemswithacargo-specificsystem,iCargo;achievedourhighestevercustomersatisfactionrankingandanAirCargoExcellenceAward;andjoinedtheIATA-sponsoredCargo2000organisation,anindustryinitiativetoimplementanewqualitymanagementsystemforthesector.
QantasFreightisideallypositionedtotapintoeconomicgrowthintheAsia-Pacificregion.Around50percentofourrevenueisnowderivedfromfreight
trafficfromAsia,withmuchofthispassingthroughShanghai,ourprimaryhubintheregion.
Ourtrans-TasmanservicesareoperatedbyacombinationofscheduledQantasandJetstarpassengerflightsandadedicatedfreighter,whiledomesticallyourtwojointventurecompanies–AustralianairExpressandStarTrackExpress–offerextensiveairandroadfreightoptionsforAustralianbusinesses.
Wearealsoinvestingstronglyininfrastructure,includingourterminalsinBrisbane,Melbourne,Perth,SydneyandLosAngeles.Ourstate-of-the-artterminalfacilitiesinMelbourne,redevelopedduring2009,havesignificantlyimprovedourstorageandhandlingcapability.
ThewebsiteremainsQantas’primarybookingchannelandAustralia’snumberonetravelsite.Itwasredesignedduring2009/2010forbetterfunctionalityandamoreattractivelook.
In2009/2010qantas.comintroduceda‘PricePromise’onhotels,carhire,activitiesandtransfers,providingcustomerswithguaranteedlowratesfortheseproducts.Interlinesellingcontinuedtoexpand,socustomerscannowsearchandbookflightsto65destinationsinAustraliaandover190destinationsaroundtheworldwithQantas,Jetstar,oneworldallianceairlinesandmorethan35othercarriers.Othernewfeaturesinclude:—Exitrowseatpurchase—Additionalbaggageallowancepurchase—Advancedseatselection—Combinedbookingsforflights,
carhireandtravelinsuranceMobilefunctionalityhasalsobeenexpandedandtheoptionsavailabletoQantasFrequentFlyermembersincreased.
In 2009, for the third year in a row, qantas.com was named Australia’s Number One Website in the ‘Aviation – Commercial Airlines’ and ‘Travel – Transport’ categories by Hitwise.
qantas.com and online channels
Qantas Freight achieved its highest ever customer satisfaction rating.
the qAntAs GRoup 38
Qantas Aviation Services provides below the wing support services to Qantas Airlines, including ground handling, ground support equipment maintenance and aircraft cleaning services throughout Australia.
The Qantas Group holds a 58 per cent share in Jetset Travelworld Group (JTG).
Thebusiness’largestoperatingcompanyisQantasDefenceServices(QDS)–rankedAustralia’sbestlargedefencecontractorintheDefenceMaterielOrganisation’sIndustryScorecardforthepasttwoyears.
QDSworkscloselywiththeRoyalAustralianAirForce(RAAF)acrossseveralprogramsandaircraftfleets,providingdeepmaintenance,logisticssupportandenginesupport.
Akeyachievementin2009/2010wassecuringa$136million,three-yearextensiontoourmaintenanceandsupportcontractfortheRAAF’sC130HHerculesfleet.
QDSisalsoperformingA330tankerconversionsforAirbusMilitaryandhasbeenawardedthecontractforthrough-lifesupportofthetankersoncetheyenterservicewiththeRAAF.
JTG,anintegratedtravelbusiness,provideswholesale,retailandspecialistbusinesstravelproductsandservicesacrossAustralia,andincludestheQantasHolidaysandQantasBusinessTravelbrands.In2009/2010wegaveoursupporttoaproposaltomergeJTGandStellaTravelServices.
Ifapprovedbyshareholdersandregulatoryauthorities,themergerwillcreateamorecompetitivebusiness,betterabletostrengthenbrandingandonlinecontent,identifycostandrevenuesynergiesandinvestinmarketdevelopment.
Qantas Aviation Services
Jetset Travelworld Group
Our tankerconversion project
Agroupof170specialistQantasengineersisconvertingfourA330-200stoMultiRoleTankerTransport(MRTT)aircraftwithair-to-airrefuellingcapability,onbehalfoftheEuropeanAeronauticsandDefenceSpaceCompany(EADS)fortheRoyalAustralianAirForce.ThisrefinedengineeringcapabilityisuniquetoQantasintheAsia-Pacificregion.
39 AnnuAl Review 2010
Our approachOurgoalistodeliveragreatplacetowork,providetraininganddevelopmentforourpeople,andharnesstheirpassionandadvocacyinsupportofourbrands.
Ourworkforceisextraordinarilydiverse,withrolesrangingfrompilotstocabincrew,professionalandtechnicalengineerstoaviationinformationanalysts,fuelhedgingspecialiststometeorologists,andwithareassuchasbaggageandcateringthatemployAustraliansrightacrossthecountry.
AfocusinrecentyearshasbeentoincreasethenumberofIndigenousAustraliansinourworkforce.ByJune2010wehad300IndigenousemployeeswithintheQantasGroup.
QantasistheleadingaviationtrainerinAustraliaandamongthemostrespectedintheworld.Weprovideextensivein-housetrainingandworkcloselywithleadingeducationandtraininginstitutions:—Our2,282Qantasmainlinepilots
domorethan33,000hoursofannualtraininginourstate-of-the-artaircraftsimulators
—Wehave385QantasandQantasLinkengineeringapprentices
—Approximately19,000employeeshaveundertakenoureXceptionalservicetraininginourpurpose-builtCentreofServiceExcellencesinceDecember2008
—TheQantasGraduateprogramhastakenin102recruitsoverthepastthreeyearsandtheirtrainingwillprovidethenextgenerationofaviationexecutives
TheQantasGrouphasdevelopedaPeopleStrategicPlanthatalignstobroadGroupstrategyandisfocusedon:—Buildingastrongculturethatengages
ouremployeesandisconducivetolastingchange
—Developingleadershipcapabilityacrossalllevelsoftheorganisation
—Supportingourdiverseandageingworkforce
Strengtheningengagementwithourpeopleremainsafocus.Akeyinitiativehasbeentobringtogetherregularly100ofthemostseniorleadersfromacrosstheGrouptoensurealignmentofstrategyandpurpose.Overthepast12months,thisapproachhasbeenbroadenedwiththestagingofsimilarforumsinvolving500influentialleadersfromacrosstheGroup.
Developingleadershipcapabilityatalllevelsdemandsanupdatedapproachtomanagingperformance.Weareinvestinginthedevelopmentofleadership,feedbackandcoachingskillsforallourmanagers.Theaimistogiveallleaders,managersandfront-linesupervisorsacommonapproachtomanagingpeopleatQantasandtobringoutthebestineveryone.
35,700 people250 unique roles55 languages92 nationalities
The Qantas Group employs 35,700 people across 250 unique roles, with 93 per cent of them based in Australia. We are a first-class employer and the leading aviation trainer in the country.
41 AnnuAl Review 2010
ABoardCommittee–theSafety,Health,EnvironmentandSecurityCommittee–overseesGroup-widehealthpolicies,reflectingtheirimportancetoourcustomersandpeople.
For employees at Qantas, key benefits and well-being initiatives include:—12weeks’paidmaternityleave
(includingadoption)anduptotwoyears’unpaidparentalleavefortheprimarycare-giver,consistentwithAustralianbestpractice
—Oneweek’spaidpaternityleave(includingadoption)
—Upto15days’paidpersonal/carer’sleaveperyear
—Accesstoaffordable,highquality,award-winningemployer-sponsoredchildcarecentresinMelbourne,SydneyandBrisbane
—Salarysacrificeprograms(suchassuperannuationandmotorvehicles)
—AHealthandWellbeingProgramthatincludesWeightWatchersatWorkandon-sitegroupexerciseclasses.Over1,300employeesparticipatedintheGlobalCorporateChallengewalkingeventin2010
—OurEmployeeAssistanceProgram,aself-referralcounsellingprogram
—Opportunitiesforreducedairfares—Afullysubsidisedfluvaccination
programforouremployees—Alcoholandotherdrugsprograms
includingrandomtestingandreferralservices
—Fatiguemanagementmeasureswhichincludecomprehensivepolicies,practicesandprocedures
Women in the Qantas Group —Womencomprise41.7percent
ofourtotalworkforce(upfrom40.4percentin2005)
—22.6percentofwomenemployeesoccupyseniorroles
—Retentionrateforwomenreturningfrommaternityleavewas97percentand100percentforfemalepilots
—Womenrepresented75percentofthetotal2010Graduateintake(comparedto43percentin2009)
With an ageing workforce, and intense competition for talent, it is important to provide safe, healthy workplaces and to encourage healthy living.
the qAntAs GRoup 42
WehaveactivatedtheSATforcrisiseventsincludingtheBalibombingsinOctober2002andOctober2005,theBoxingDay2004Asiantsunami,CycloneLarryinApril2005,andinsituationswhereturbulencehascausedinjuriestocustomersoremployees.SATmembersmayberequiredtoarrangemedicalcareandcounselling,repatriationandescorting,andhotelandhospitalvisits.
Volunteerscomefromeveryleveloftheorganisation,includingseniormanagement,andabroadrangeofculturalandreligiousbackgrounds.Oftenworkingundergreatpressure,withtighttimeconstraints,andoutoftheirnormalworkingenvironment,thesevolunteersarethekeypointofcontactbetweentheQantasGroupandpeopleaffectedbya
crisis,includingourcustomers,crew,peopleontheground,andfamilies.
Membersundergotwodaysofinitialtraining,withcoursecontentresearchedfromotherairlinesandindustrystandards.Thisissupplementedannuallywithrefreshertraining.
TheSATwasactivatedin2009/2010duringthevolcanicashincident.JamesKassimatiswasoneofthosedeployedtoBangkoktoassistaverysmallteamcareforseveralhundredstrandedcustomers.
“Tosaytheexperiencewasamazingwouldbeanunderstatement,”saysJames.“AsaSpecialAssistanceTeammemberinadeployment,youarethefaceofQantas.Fromacustomer’sperspective,youareQantas...Families,thesick,theelderly,thelonely,theangry,
theyou-name-it,allcometogetherandbytheendoftheadventureyouknowthemallbyfirstnameandtheirstory.Ihaveneverbeforereceivedastandingovation,consoledcryingstrangersandbeenhuggedandkissedbycustomers...”
ForJamesandotherSATmembers,deploymentduringacrisissituationmeanslongworkinghoursandstressfulconditions.
“SAT is truly the most rewarding challenge I have ever experienced at Qantas. The skills and experience will be an incredible asset for the rest of my career.”
A spirit of service
The Qantas Special Assistance Team, known as SAT, comprises approximately 900 volunteer employees from the Qantas Group around the world who give their time, skills and compassion to help us provide humanitarian care during a crisis.
JAmes kAssimAtis
43 AnnuAl Review 2010
Superior infrastructure is fundamental to Qantas Group operations.
We have a fleet of 254 aircraft and an ambitious fleet renewal program. Our engineering and maintenance capabilities ensure safe, reliable performance. Our global network of 14 international lounges includes our inspirational First Lounges, while at home we are the only airline to offer multi-tiered domestic lounges.
Fleet renewal is essential to aviation success. Investing in new aircraft drives improvements in safety, passenger comfort, cost, fuel efficiency, noise, emissions, freight capacity and range capability.
Fleet
TheQantasGroupretainssubstantialflexibilityinitsfleetorderbookbyhavingamixofownedaircraftandleases,andaprogressiveorderstreamthatenablesbothdeferralsandadvancements.
At30June2010,theQantasGroup,includingJetstarAsia,operatedafleetof250passengeraircraftplusfourdedicatedfreighteraircraftwithacombinedaverageageoflessthan10years.TheGroupwet-leasedthreeBoeing747-400sandoneB767-200freighteraircraft.
Morethan150newaircraftareplannedfordeliveryoverthecomingeightyears.Thisrepresentsmorethanonenewaircraftpermonthandwillenabletheretirementofupto65olderaircraftwithsomeaircrafttypes(B767-300andB737-400)tobeprogressivelyphasedout.
TheAirbusA380andtheB787DreamlinerarecentraltotheQantasGroup’swide-bodyfleetstrategy.QantaswasthefirstairlinetosignonfortheA380andisthesecondlargestairlinecustomerfortheB787.
TheA380isreplacingB747sonthematuredenseroutesofLondonandLosAngeles,andthefleetwillgrowto20overthenextfiveyears.
TheB787willbeidealforpoint-to-pointflyingonmediumdensityroutes,bothshort-haulandlong-haul;facilitatingJetstar’sgrowthintoEuropeandinAsia;operatingQantasservicesintoAsia;potentiallyoperatinghightrafficroutesontheQantasdomesticnetwork;andprovidingfortheretirementofQantas’B767fleet.
Thefirmaircraftorderdeliverystreamstandsat50withthefirstB787duetoarriveinmid-2012.Thefirst15B787swillbeusedbyJetstarforitsinternationaloperations,allowingJetstarA330stobetransferredtoQantasforuseonhigh-densitydomesticroutes.
ThecornerstoneofQantasLink’sfleetrenewalisthe72-seatturbopropBombardierQ400,withQantasLinknowoperating21Q400s.
Qantas Group Aircrafton order at 30 June 2010
Type No.
A380-800 14
A330-200 5
B787-8 15
B787-9 35
B737-800 28
A320Family 54
Q400 7
TOTAL 158
45 AnnuAl Review 2010
The B787 will deliver considerable environmental and economic benefits. ItwillbeabletoflyalongerrangecomparedtoA330s,andthereforemorepoint-to-pointservices,withouttheneedtooperateviahubs,akeyadvantageforQantasandJetstaras‘endoftheline’carriers.
Itwillalsoofferanimprovedcustomerexperienceincludinglargerwindows,higherhumidityandalowercabinaltitudepressure.
TheB787-8canseatapproximately300passengers,whiletheB787-9seatsapproximately350passengers.
Followingthelaunchoftheprogramin2004,thefirstsuccessfultestflightfortheB787-8occurredinDecember2009(withRollsRoyceengines),markingthebeginningofatestflightprogramthatwillseesixB787aircraftflyingaroundtheclockandaroundtheworld.Thefifthtestaircraft,fittedwithGeneralElectricengines(theenginetypeorderedby
QantasandJetstar),haditsfirstsuccessfultestflightinJune2010.CertificationFlightTestingandFederalAviationAdministrationapprovaloftheB787typedesignisexpectedtooccurinNovember2010withthefirstdeliveriestocustomerstooccurbyearly2011,andtheQantasGroupreceivingthefirstofour50B787sinmid-2012.
Next generationflying – B787
the qAntAs GRoup 46
Engineering makes a major contribution to the Qantas reputation for safety, reliability and performance.
Withcloseto6,000peopleemployedand385apprentices,engineeringinQantasisacomplexbusiness,requiringveryhighlevelsofskillandtraining,scrupulousqualityassurancestandards,excellenceinsupplychainprocesses,projectdeliveryskills,andpeoplemanagement.SophisticatedengineeringfacilitiesinAvalon,Brisbane,Melbourne,Adelaide,LosAngeles,TamworthandSydneycarryoutaircraftmaintenance,modifications,refurbishment,andengineandcomponentrepairandoverhaul.
In2010QantasLinkcommencedheavymaintenanceonitsfleetof21BombardierQ400turbopropaircraftattheupgradedTamworthmaintenancefacility.Additionally,majorlinestationsconductaircraftturnaroundandminormaintenanceincentresincludingCairns,Darwin,CanberraandPerth.
Morethan80percentofallQantasaircraftmaintenanceiscarriedoutinAustralia.Inearly2010QantascommencedheavymaintenanceonitsA330fleetofaircraftinBrisbane,securinghundredsofjobsacrossarangeofengineeringandmaintenanceroles.
Engineering
People: 5,877Sites: Seven (Avalon, Brisbane, Melbourne, Adelaide, Los Angeles, Tamworth, Sydney) Facilities: 282,000m2
the qAntAs GRoup 48
Qantas Catering comprises the premium airline catering business Q Catering and meal component manufacturer Snap Fresh. In 2009/2010 Qantas Catering prepared 35 million meals and spent over $240 million on catering supplies.
QCateringisaworld-leadingdomesticandinternationalflightcateringservice,thebiggestofitskindinthesouthernhemisphereandthefirsttohaveeachofitssevenproductioncentresaccreditedtointernationalfoodsafetymanagementstandards.
WorkingwithQantasconsultingchefNeilPerry,QCateringdeliversdeliciousinflightcuisinetopremiumQantascustomersandmealstootherairlines.
SnapFreshisastate-of-the-artmealproductionfacilityforairlineandnon-airlinecustomers,includingthehealthcareanddefencesectors.
People: 2,800Sites: Six (Adelaide, Brisbane, Cairns, Melbourne, Perth, Sydney)Meals: 35 million Facilities: 75,000m2
Catering
49 AnnuAl Review 2010
Superior airport infrastructure and continuing investment in high quality terminals and lounges support our goal of a seamless and enjoyable journey for customers.
AirportinvestmentiscrucialtosupporttheintroductionoftheA380andplannedintroductionoftheB787,theexpansionoftheA330andB737-800fleetsondomesticroutesandforecastgrowthinpassengers.ThisyearQantasfinalisedits$75millionPerthterminalredevelopment,includinglounges,andalsocompleteditsseamlesstransferfacilitybetweenSydneyinternationalanddomesticterminals.
FromSydneytoKarratha,fromLauncestontoTownsville,nootherairlineintheworldoffersthelevelofmulti-tieredloungefacilitiesprovidedbyQantasforourdomesticcustomers.Wehave14stylishQantasinternationallounges,withourMarcNewsonFirstLoungeswinninginternationalawardsandcustomeracclaim,plusafurthereightlounges
sharedwithinternationalairlinepartners.Investmentinourglobalanddomesticloungenetworkcontinueswithmorethan$40millionincurrentandprojectedexpenditure.
MajordomesticprojectscompletedoverthecourseoftheyearincludenewregionalloungesinKalgoorlieandCoffsHarbour,theCairnsQantasClub,theChairmansLoungeandQantasClubinPerthandloungeupdatesintheSydneyT2andHobartQantasClubs.Majorprojectsunderwayincludeour$18millionCanberraterminalwithanewMarcNewsonChairmansLounge,BusinessLoungeandQantasClub,newEmeraldandLauncestonregionallounges,andanupdatetotheDevonportregionallounge.
Internationally,thisyearwecompletedanewHongKongBusinessLoungeandupdatedtheHongKongFirstLoungeandtheHonoluluBusinessLounge.WorkunderwayincludesarefreshoftheSingaporeFirstLounge,andupdatesoftheWellingtonandSydneyBusinessLounges.OurfutureplansincludeMarcNewsonFirstLoungesinLosAngeles,SingaporeandHongKongwhichwillconsolidateoursuperiorFirstoffering.
Airports
Domestic
Lounge Type No. Locations
Chairmans 6 Adelaide,Brisbane,Canberra,Perth,Melbourne,Sydney
Business 4 Brisbane,Canberra,Melbourne,Sydney
QantasClub 12 Adelaide,Cairns,Brisbane,AliceSprings,Canberra,Darwin,Hobart,Perth,Melbourne,SydneyT3,SydneyT2,Townsville
Regional 9 Broome,CoffsHarbour,Devonport,Kalgoorlie,Karratha,Launceston,Mackay,PortHedland,Rockhampton
International
Lounge Type No. Locations
InAustralia—First
3 Sydney,Melbourne,Brisbane
InAustralia—Business
4 Brisbane,Perth,Melbourne,Sydney
OutsideAustralia—First
2 Auckland,HongKong
OutsideAustralia—Business
5 HongKong,Honolulu,Tokyo,Wellington,Auckland
OutsideAustralia—Jointlounges(FirstandBusiness)
8 Bangkok(First,Business),LosAngeles,TomBradleyterminal(First,Business),LosAngeles,T4terminal(First,Business),Singapore(First,Business)
the qAntAs GRoup 50
51 AnnuAl Review 2010
Excellenceincustomercareembraceseveryaspectofthecustomerexperiencefrombookingtoboarding,frominflighttobaggagecollection.
Sowearelisteningtoourcustomersmorecarefullythanever;engagingourpeopleandequippingthemtodeliverconsistentlyexcellentservice;andinvestingingreatfleet,loungesandproduct.
Qantashastraditionallyuseddetailedandregularcustomersatisfactionsurveystomeasureourperformanceincustomercare:—AtMay2010weequalledourhighest
evermonthlycustomersatisfactionrating—Overthepast12monthsinternational
customersreportedthattheyweresignificantlymoresatisfiedwiththegroundexperience,particularlycheck-in,boarding,loungesandpunctuality
—TheAirbusA380cabinenvironmentanditsseatscontinuedtoattractstrongcustomersatisfactionresultsacrossallcabins,particularlyinFirstClass.OurSydneyandMelbourneFirstLoungescontinuedtorateat95percent-pluslevels
—Amongdomesticbusinesstravellersoverallsatisfactiontrendedupwardsoverthe12months,drivenstronglybyon-timeperformancewhichwasthebestforadomesticAustralianairline
NowQantasismovingtoaddamoreambitiousmeasureofcustomersatisfaction,theNetPromoterScore.OurgoalovertimeistoconvertmoreofoursatisfiedcustomersintoactivepromotersofQantasandtherebystrengthenourshareoftheirbusiness,aswellasattractandkeepnewcustomers.Weknowfromourresearchthatserviceisthebiggestdriverofthiskindofadvocacy.
Our long-term strategy involves: —Investinginbreakthroughinitiatives,
suchasNextGenerationCheck-in,thatwilldeliverthebiggestreturnsintermsofcustomersatisfactionandadvocacy
—HarnessingthepowerofourFrequentFlyerprogramtobuildenduringandvaluedrelationships
—Strengtheningthemorale,engagementandskillsofourQantaspeople
—Greaterinputbyourfront-linestaffinfollowingupthecomplaintsorcomplimentsofourcustomers
Our customers are at the centre of all that we do.
More than ever, we are investing in understanding what our customers want and delivering more than they could imagine. Qantas is redefining the modern premium airline brand and, with our Next Generation Check-in, streamlining and simplifying the airport experience.
Inflight healthOurcustomers’safetyandwell-being,bothpre-flightandinflight,areveryimportanttous.Weresearchandreviewenvironmentalconditionsonboardtoensuremaximumpassengercomfort.
Weprovide:—AMeetandAssistserviceto
passengerswithspecialneeds—Mobilityassistance,including
servicesforthevisionandhearingimpaired
—Provisionforservicedogs—Medicalrepatriation,
accommodatingstretchers,medicalescortsandspecialequipmentrequirements
—Onlineinformationonmedicalconditionsandapplicableclearancesthatmayberequired
QantascrewaretrainedtoprovidemedicalassistanceandbothQantasandJetstaraircrafthavesatellitelinkstophysiciansshouldspecialistadvicebeneeded.
53 AnnuAl Review 2010
Listening to our customers, one message that came through loud and clear was that domestic check-in was a point of pain. The queues were too long, the hassle too big. Our customers wanted speed and they wanted ease. And that’s what we are delivering with Next Generation Check-in.
Next Generation Check-in
Who:Allcustomerswithaweb-enabledmobiledevice.What:Customerscancheckinforadomesticflightonqantas.comwiththeirdevicebetween24hoursand45minutespriortodeparture.How:Customersfollowafewsimplestepstocompletecheck-in,witha2Dbarcodesenttotheirdevice.Thebarcodeisscannedatthegatewhereaboardingreceiptisprintedwithkeycustomerandflightinformationforuseonboard.
Mobile Check-in
Who:Allcustomers.What:Availablebetween24hoursandonehourpriortodeparture,self-servicecheck-infordomesticflightsavailableviaManageYourBookingonqantas.comHow:Customerswithinternetaccesscancheckinfromhomeortheoffice,selectandchangetheirseatsandprinta2Dbarcodeboardingpassforuseattheboardinggate.
Who:ChairmansLoungemembers,Platinum,GoldandSilverFrequentFlyers.What:Keyautomationplatformprovidingcustomerswithcontrolovertheirseatingpriortoarrivalattheairport.How:Customerschoose/changetheirseatsviaManageYourBookingonqantas.comuptothreehourspriortodeparture.
Online Check-inAdvance Seat Selection
the qAntAs GRoup 54
Who:Customersrequiringassistancewithsimpleissues.What: Fullagentworkstationconvenientlylocatedincloseproximitytokiosks.How:CustomerServiceAgentscanaccessphoneandcomputerfunctionstoresolvesimpletransactionerrorsforcustomers.
Kiosk Service Point
Who:PrimarilyforBronzeandnonFrequentFlyers,butavailabletoallcustomers.What:Functionalityenablingcustomerstocheck-in,selectseats,printbaggagetags,completeexcessbaggagepaymentsbycreditcardorcarryoutchangesandupdates.ThekioskswillbelocatedinclusterformationanchoredbyaKioskServicePoint.Scalesareavailabletoencouragecustomerstovalidatebagweightpriortocheckingin.How:Enhancedfunctionalityandinteractivescreensstepcustomersthroughthecheck-inandbaggageprocesses.FastPathfunctionalityprovidesshortcutsforkeyprocessespostcheck-insuchasseatchangesandaddingFrequentFlyerdetails.CustomerServiceAgentsprovideassistance.
Kiosks
Who:ChairmansLoungemembers,Platinum,GoldandSilverFrequentFlyersandQantasClubmembers.What:AnewQantasFrequentFlyerCardwithsmartchip(RFID)technologyandasimplereaderdesignthatsupportsafasttransaction,enablingpremiumcustomerstobeautomaticallycheckedin.ThenewFrequentFlyerCardisthenusedattheboardinggatewithcustomersreceivingaboardingreceipt.How:CustomerstouchtheirnewFrequentFlyerCardonQCardReaderslocatedthroughouttheterminaltobeautomaticallycheckedin.AvisualindicationontheReaderandasoundconfirmcheck-in.AnSMSconfirmationofcheck-in/flightdetailsfollows.ChangestobookingsoradditionalprocessingmustbeactionedatkiosksorServiceDesks.
Automatic Check-in
55 AnnuAl Review 2010
Who:ChairmansLoungemembers,Platinum,GoldandSilverFrequentFlyers,QantasClubmembersandcustomerstravellinginBusiness.What:Adedicatedface-to-facefullserviceoption.Functionsincludecheck-in,changestoitinerary,problemresolutionanddomestictointernationalcheck-in.How:Premiumcustomerspreferringtocheck-inordroptheirbagsataServiceDeskorspeakwithaCustomerServiceAgentwillcontinuetohaveaccesstothisservice.
Premium Service Desk
Who:ChairmansLoungemembers,Platinum,GoldandSilverFrequentFlyers.IntimeBronzeFrequentFlyerswillbeabletopurchasetags.What:AphysicalelectronicbagtaglinkedtotheQantasFrequentFlyerCardandusedtocheckinbaggage.Keycustomerandflightinformationisrecordedonthetag’ssmartchipenablingsecurereconciliation.How:QBagTagsareattachedtocheckedbaggage,enablingcustomerstogodirectlytoaBagDropwithoutneedingtoaccessakiosktoprintandtagbags.
Q Bag Tag
Who:Allcustomerstravellingwithbags.What:AnautomatedBagDropsupportedbyCustomerServiceAgents.How:Oncecheckedin,customersplacetheirtaggedbagsontheinjectorsandfollowasetofsimplestepsprovidedontheinjectorscreens.Asimplereconciliationprocessmatchesboardingpassandbagtagdatatothebookingandensuressecureacceptanceofbagsintothebaggagehandlingsystem.Theinjectorsrecognisebagsizeandweighttodetermineiftheyarewithincustomerentitlements.
Bag Drop
Ourpioneeringspirithasalwaysbeenpartofwhoweareandwherewecomefrom.Ithashelpedourairlinetoconstantlysetnewbenchmarksforotherstofollow.
ThelaunchofdomesticNextGenerationCheck-inispartofaneweraofinnovation.It’sanambitiousproject,involvingworld-firsttechnology.
Itwillre-engineerhowourproductsandservicesaredeliveredtoourcustomers.Anditwillchangethecustomerexperience,enablingouremployeestofocuslessonprocessandmoreoncustomercare.
Next Generation Check-in
the qAntAs GRoup 56
Who:Allcustomers.What:Seamlessboardingprocessregardlessoftheboardingpasstypepresented–chip-enabledFrequentFlyerCard,mobileorpaperboardingpass(online,kioskorServiceDesk).Who: ChairmansLoungemembers,PlatinumFrequentFlyersandcustomerstravellinginBusiness.What:Priorityaccessatanytimeduringtheboardingprocess.
Enhanced boarding
Who:BronzeFrequentFlyersandallothernonFrequentFlyers.What:AresolutionservicepointforcustomerissuesthatcannotberesolvedatakioskorKioskServicePoint,andforcustomerswhorequireassistancefromtheBagDropandoversizedbaggageareas.How:CustomersaredirectedtotheServiceDeskforfurtherassistanceincludingfacilitatingpassportandvisachecksfordomestictointernationalcheck-in.
Who:ChairmansLoungemembers,PlatinumandGoldFrequentFlyersandcustomerstravellinginBusiness.What:Customershaveaccesstoapriorityscreeninglane,locatedinproximitytoloungeentryidentifiedbysignageandsupportedbyaCustomerServiceAgent.
Service Desk Premium security
57 AnnuAl Review 2010
Environmental sustainability is a commercial and social imperative for the Qantas Group.
We have a comprehensive environmental strategy focused on operational efficiency, industry advocacy and research, and engagement with our customers, employees and community organisations.
Fuel conservationFuelconservationiskeytoouroverallenvironmentalstrategy.Ninety-fivepercentoftheQantasGroup’sgreenhousegasemissionsareattributabletofueluse,oneofourlargestcostdrivers.Usingfuelmoreefficientlymeanswecanbettermanagethesecosts,absorbfluctuationsinoilpricesandreduceourcarbonfootprint.
Fleetrenewalisthefoundationforourfuelconservationprogram.WeareinvestingUS$22billioninhighlyfuel-efficientnextgenerationaircraft(atlistprices),suchastheAirbusA380andBoeing787.TheQantasGrouphassixA380sinservice,withafurther14tocome,and50B787sonorder.
Thisinvestmentinourfleetiscomplementedbyarangeoffuelconservationactivitiesintheairandontheground,suchasaircraftweightreduction,betterschedulingandpunctuality,enhancedflightplanningandnavigation,reducedrelianceonAuxiliaryPowerUnits,newtechnologiesandimprovedtechnicalperformance.
Inearly2010wereachedakeymilestone:savingonemilliontonnesofcarbondioxideequivalent(CO2-e)throughfuelconservationactivitiessince2005.
Overthelongerterm,wearecommittedtoastringentfuelefficiencytargetofanaverageof1.5percentimprovementperannumby2020,inlinewiththeglobalindustrygoalsestablishedbytheInternationalAirTransportAssociation(IATA).
Sustainable aviation fuel TheQantasGroupiscommittedtosupportingresearchinto,andthedevelopmentof,sustainablealternativestotraditionalaviationfuels.
During2009/2010theQantasGrouptooktwoimportantsteps:—JoinedtheSustainableAviationFuel
UsersGroup(SAFUG),aglobalgroupofleadingairlinesandaviationcompaniesworkingtogetherwithscientificagenciesandenvironmentalorganisationstodevelopcleanerjetfuels
—Launcheda‘Roadmap’studyinconjunctionwiththeAustralianandNewZealandgroupofSAFUGandtheCommonwealthScientificandIndustrialResearchOrganisation(CSIRO)toidentifyandsuggesthowtoaddressbarrierstoacommerciallysustainableaviationfuelsindustry
Focus on fuel
59 AnnuAl Review 2010
During 2009/2010 we launched Australia’s first domestic inflight recycling program and commissioned the installation of a tri-generation energy facility in Sydney that could reduce our electricity use significantly.
Carbon readinessCarboncomplianceregimesareinplaceorplannedinanumberofkeymarketswheretheQantasGroupoperates.TheNewZealandEmissionsTradingScheme(ETS)commencedon1July2010andappliestoJetstar’sdomesticoperations.ThisisthefirstmandatoryETStoincludeaviation.TheEuropeanUnionETSwillalsoincludeaviationfromJanuary2012.Todate,wehavemetallourobligationsinthesejurisdictions.
InOctober2009wesubmittedourfirstmandatorycarbonfootprintreportundertheAustralianGovernment’sNationalGreenhouseandEnergyReporting(NGER)Act,reporting4.2milliontonnesofCO2-eforactivitiesandentitiesundertheQantasGroup’soperationalcontrolfor2008/2009.
TheQantasGroupwillcontinuetoembedthecostofcarbonintoreportingsystemsandlong-termbusinessplanning.
Carbon offsetting QantasandJetstar’svoluntarycarbonoffsetprogramwasestablishedtoenablecustomerstooffsettheirportionoftheemissionsgeneratedbytheirflights,andfortheQantasGrouptooffsetstaffdutytravelandgroundvehicleuse.—Passengersoffset240,000tonnes
ofcarbonduring2009/2010—Between7.5and9percentofcustomers
bookingthroughtheQantasandJetstarwebsiteschoosetooffset
—66,436tonnesofcarbonfordutytravelandgroundvehicleusewereoffsetin2009/2010
—Morethan772,000tonnesofcarbonhavebeenoffsetsince2007
WiththeAustralianGovernment’sGreenhouseFriendlyschemecomingtoanendinJune2010,theQantasGrouphasmovedtocomplyfullywiththereplacementscheme,theNationalCarbonOffsetStandard(NCOS).
Reducing resource consumption
Target area Targeted improvement by 30 June 2011 (%)
Progress against baseline of 2006/2007 (%)
Reduceelectricityconsumption 10 4.6
Reducewaterconsumption 25 17.7
Reducewasteconsumption 25 10.9
Positive environmental action
the qAntAs GRoup 60
Qantas’internalenvironmentprogram,begreen,encouragesemployeestochampionsustainableworkpracticesbyjoiningthestaffGreenTeamnetwork(whichincludesemployeesatalllevelsandinallareasofthebusiness).OureXcelawardsprogramrecognisessustainabilityleadershipatwork,whileemployeescontributetoanumberofcommunityenvironmentalinitiatives.
WealsosupportimportantenvironmentalorganisationsandprojectsthroughtheQantasFoundation,theQantasAwardforExcellenceinSustainableTourismandotherforums.
OurworkinpartnershipwiththeGreatBarrierReefFoundation(GBRF)isagoodexampleofthiscommitmentinaction.TheQantasFoundationisapatronofGBRF’sZooXFund,whichprovidesa
channelforindividualsandbusinessestosupporthigh-priorityresearchprojectsidentifiedbyitsInternationalScientificAdvisoryCommittee.ZooXisfocusedonprojectsthatwillincreaseGBRF’sknowledgeabouttheimpactsofclimatechangeontheReefandinformstrategiesforitspreservationandprotection.
QantasalsoparticipatesintheZooXAmbassadorsprogram–whereemployeestakepartinaneducationalprogramandfieldtriptotheReef,andusetheknowledgetheygaintoimplementenvironmentalimprovementinitiativesintheirworkplace.
InJune2010Qantasannounceditssupportforanimportantclimatechangeresearchproject,inassociationwiththeGBRFandtheCSIRO.‘SealsfortheReef’involvessafelyattachingsensorsto
elephantsealsintheSouthernOceantotrackchangingwaterconditions.TheinformationgatheredwillbeanalysedbyresearchersfromCSIROandtheUniversityofTasmania,providingbothaninvaluableguidetotheseals’behaviourandavital‘earlywarningsystem’forthepotentialimpactsofincreasedwatertemperatureandsalinityontheGreatBarrierReef.
Engaging our people and working with communities
61 AnnuAl Review 2010
Good corporate citizenship is part of our role and responsibility as the national carrier.
The Qantas Group works in partnership with the Australian community to promote excellence, provide opportunities, protect the environment and help those affected by adversity.
TheQantasFoundation,establishedasacharitabletrustin2008,isfocusedonmakingadifferencetocommunitiesatagrassrootslevelthroughcharitabledonationsandassistanceinkind.Itworksintheareasofhealth,communityandeducation,theenvironment,artsandhumanitarianrelief.
GrantsaremanagedbytheQantasFoundationTrusteeBoardanddistributedthroughfourfunds:—ArtEncouragementFund—EnvironmentalSustainabilityFund—HumanitarianFund—GeneralFundforothercharitable
purposesSignificantinitiativesundertakenbytheFoundationinclude:—Donating$100,000worthofairfares
toenabletheRoyalFlyingDoctorService(RFDS)togeneratefundraisingrevenueforthepurchaseofvitalmedicalequipmentandsupportkeyRFDSinitiatives,aswellastransportRFDSstaffanddonors.QantasstaffalsoshowedtheirsupportfortheRFDSbyvolunteeringatthe2010RFDSSouthEastSectionOpenDayinMay2010
—FormingapartnershipwithMissionAustraliaanditssocialenterpriserestaurant,CharcoalLane,whichprovidestraining,lifeskillsandpathwaysintothehospitalityindustryfordisadvantagedyoungpeople.TheFoundationhassponsoredsixstudentswithadonationof$57,000
—LaunchingaspecialcampaignencouragingQantasstafftodonatetotheFoundationinsupportofTheFredHollowsFoundation’sworkwithAustraliansinremoteIndigenouscommunitieslivingwithcataractblindness,trachomaandothertreatableeyeconditions.WithamatchingdonationfromtheQantasGroup,theFoundationdonatedatotalof$50,000
—TogetherwiththeAustralianRugbyUnion(ARU)andFootballFederationAustralia(FFA),donating$50,000tosupportUNICEF’sreliefeffortsfollowingthenaturaldisastersinSamoa,TongaandIndonesiainlate2009
AmongtheothergroupstheFoundationsupportedduring2009/2010weretheAustralianBusinessandCommunityNetwork,theCentreforSocialImpact,theCentreforSustainabilityLeadership,CleanUpAustraliaDay(asOfficialFoundationPartner),FloraandFaunaInternationalAustralia,theGreatBarrierReefFoundationandLandcareAustralia.
TheQantasFoundationcomplementsQantas’broadersponsorshipandpartnershipwork,whichincludessupportfortheAustralianoftheYearAwards,CAREAustralia,theInternationalDayofPeoplewithaDisability,theNationalAustraliaDayCouncil,theNationalBreastCancerFoundation,RedDustRoleModels,theRoyalInstituteforDeafandBlindChildrenandUNICEF.In2009/2010Qantasraisedover$1.8millionforUNICEF’sChangeforGoodprogram.
Qantas Foundation
63 AnnuAl Review 2010
WealsocontinuedourcloserelationshipwiththeAustralianFootballLeague(AFL),asofficialairlineandMajorPartneroftheLeague’sIndigenousprograms,andtheARU,asnamingsponsoroftheQantasWallabies.DuringtheAFL’sofficialIndigenousRound,wemadea$50donationtotheLongWalkTrustforeverygoalkicked.
Inthearts,wearecommittedtohelpingidentifyandnurtureyoungAustraliantalent.TheQantasFoundationEncouragementofContemporaryArtAwardrecognisesartistsineachstateandterritory–theonlysuchawardtodosobasedonabodyofwork,ratherthanasinglepiece.Wesponsororganisations,venuesandeventsdedicated
toshowcasingthebestofinternationalandAustralianculture,fromdanceandtheatretoIndigenousart.
AsaGoldSponsoroftheAustralianPavilionattheShanghaiWorldExpo,wewereactiveinpromotingAustraliancultureandbusinessinoneofAustralia’smostimportantmarketsfortrade,investmentandtourism.
In 2009/2010 we put a strong focus on sport, becoming naming rights sponsor of the Formula 1™ Australian Grand Prix for the second time, supporting the Qantas Socceroos at the 2010 FIFA World Cup in South Africa and backing Football Federation Australia’s bid for the 2022 World Cup.
Qantas’ origins are in regional Australia and, through QantasLink operations and other activities, we help stimulate economic growth, job creation and tourism in regional communities.
Examples of this activity include: —InTamworth,QantasLink’sNSW
maintenancebase,weemploy82people,sponsortheCountryMusicAssociationofAustraliaandspentatotalof$5.4millionin2009/2010
—InMildura,weemploy28people,sponsorthelocalChamberofCommercebusinessawardsandtheMilduraWritersFestival,andspent$1.5millionin2009/2010
—InGladstone,weemploy12groundhandlingstaff,sponsortheGladstoneHarbourFestivalandcontributedexpenditureof$4.2millionin2009/2010
Wearekeenlyawareofaviation’ssignificancetothesecommunitiesandothers,andoftheimportanceofgivingbacktothefamiliesandbusinessesthatsupportusacrossthecountry.
Qantas in the Australian community – sharing the spirit
QantasLink – giving back to regional Australia
the qAntAs GRoup 64
TheQantasReconciliationActionPlan(RAP)aimstobuildrelationshipsforchangebetweenAboriginalandTorresStraitIslander(Indigenous)AustraliansandotherAustralians.
Weareproudtohavebeenrecognisedasacorporateleaderinreconciliation,beingnamedBestEstablishedBusinessintheQueenslandGovernment’s2009ReconciliationAwardsforBusiness.
Ourworkinsupportingreconciliationinitiativeswithinourcompanyandwithourcustomersandthecommunityincludes:—FoundingmembershipoftheAustralian
IndigenousMinoritySupplierCouncilandengagingIndigenousbusinessestoprovideservicestoQantas
—ProvidingemploymentandeducationalopportunitiesforIndigenousAustraliansincludingscholarships,school-basedtraineeshipsanduniversitycadetships
—DevelopingpartnershipswhichaimtosupportIndigenousexcellenceinsport,artandculturethroughourworkwithBangarraDanceTheatre,theAFL,theGondwanaNationalIndigenousChildren’sChoirandtheNationalGalleryofVictoria’sIndigenousGalleries
—PromotingsharedprideinIndigenousculturebyscreeningIndigenousdocumentariesandfilmsonourinflightentertainmentandincludingarticlesintheinflightmagazineandotherQantaspublications
—Filmingof“WelcometoCountry”withlocalIndigenouseldersinSydney,DarwinandCairnsfortheQantasinternationalinflightarrivalvideoguides,withothercitiestofollow
—Providinginformationfortravellers(qantas.com/reconciliation)abouttravellingrespectfullyinIndigenousAustraliaandinmakinginformedandethicalchoiceswhenpurchasingIndigenousartandartefacts
“Qantas has been leading the way in developing a broad range of opportunities for both their company and other businesses to contribute to reconciliation. The Qantas RAP demonstrates good practice in many ways, providing a sound model and invaluable lessons for other companies.”CO-CHAIRS OF RECONCILIATION AUSTRALIA: MICK DODSON AM AND MARK LEIBLER AC
Qantas and reconciliation
65 AnnuAl Review 2010
Board of Directors
LeighCliffordwasappointedtotheQantasBoardinAugust2007andasChairmaninNovember2007.HeisChairmanoftheQantasNominationsCommittee.MrCliffordisaDirectorofBarclaysBankplcandBechtelGroupInc.HeisChairmanofBechtelAustraliaPtyLtdandtheMurdochChildrensResearchInstitute,aSeniorAdvisortoKohlbergKravisRoberts&CoandaBoardMemberoftheNationalGalleryofVictoriaFoundation.MrCliffordwasChiefExecutiveofRioTintofrom2000to2007.HeretiredfromtheBoardofRioTintoin2007afterservingasaDirectorofRioTintoplcandRioTintoLimitedfor13and12yearsrespectively.HisexecutiveandboardcareerwithRioTintospannedsome37years,inAustraliaandoverseas.Age:62
Leigh Clifford, AO
BEng, MEngSciChairman Independent Non-Executive Director
AlanJoycewasappointedChiefExecutiveOfficerandManagingDirectorofQantasinNovember2008andCEODesignateandtotheQantasBoardinJuly2008.HeisaMemberoftheSafety,Health,EnvironmentandSecurityCommittee.MrJoyceisaDirectorofanumberofcontrolledandassociatedentitiesoftheQantasGroup,andaformerDirectorofOrangestarInvestmentHoldingsPteLimitedandJetstarPacificAirlinesAviationJointStockCompany.HewastheCEOofJetstarfrom2003to2008.Beforethat,MrJoycespentover15yearsinleadershippositionsforQantas,AnsettandAerLingus.AtbothQantasandAnsett,heledtheNetworkPlanning,SchedulesPlanningandNetworkStrategyfunctions.Priortothat,MrJoycespenteightyearsatAerLingus,whereheheldrolesinSales,Marketing,IT,NetworkPlanning,OperationsResearch,RevenueManagementandFleetPlanning.Age:44
Alan Joyce
BApplSc(Phy)(Math)(Hon.), MSc(MgtSc), FRAeSChief Executive Officer
GarryHounsellwasappointedtotheQantasBoardinJanuary2005.HeisChairmanoftheAuditCommitteeandaMemberoftheNominationsCommittee.MrHounsellisChairmanofPanAustLimitedandaDirectorofOricaLimited,DuluxGroupLimitedandNufarmLimited.MrHounsellisalsoDeputyChairmanofMitchellCommunicationGroupLimited.HeisChairmanofInvestecGlobalAircraftFund,aDirectorofIngeusLimitedandaBoardMemberoflawfirmFreehills.MrHounsellisaformerSeniorPartnerofErnst&YoungandChiefExecutiveOfficerandCountryManagingPartnerofArthurAndersen.Age:55
Garry Hounsell
BBus(Acc), FCA, CPA, FAICDIndependent Non-Executive Director
PaulRaynerwasappointedtotheQantasBoardinJuly2008.HeisaMemberoftheAuditCommitteeandSafety,Health,EnvironmentandSecurityCommittee.MrRaynerisaDirectorofBoralLimitedandCentricaplc.HealsoservesasChairmanofBoral’sandCentrica’sAuditCommittees.From2002to2008,MrRaynerwasFinanceDirectorofBritishAmericanTobaccoplc,basedinLondon.MrRaynerjoinedRothmansHoldingsLimitedin1991asitsChiefFinancialOfficerandheldotherseniorexecutivepositionswithintheGroup,includingChiefOperatingOfficerofBritishAmericanTobaccoAustralasiaLimitedfrom1999to2001.PreviouslyMrRaynerworkedfor17yearsinvariousfinanceandprojectroleswithGeneralElectric,RankIndustriesandtheEldersIXLGroup.Age:56
Paul Rayner
BEc, MAdmin, FAICDIndependent Non-Executive Director
the qAntAs GRoup 66
PeterCosgrovewasappointedtotheQantasBoardinJuly2005.HeisaMemberoftheSafety,Health,EnvironmentandSecurityCommitteeandaDirectorofQantasSuperannuationLimited.GeneralCosgroveisaDirectorofCardnoLimited,ChairmanoftheSouthAustralianDefenceIndustryAdvisoryBoardandtheAustralianWarMemorialCouncil.GeneralCosgroveservedintheAustralianArmyfrom1965includingcommandoftheinternationalforcesinEastTimorfrom1999untiltheforcewaswithdrawninFebruary2000.HewastheChiefoftheAustralianDefenceForcefromJuly2002untilhisretirementinJuly2005.GeneralCosgrovewasAustralianoftheYearin2001.Age:63
General Peter Cosgrove, AC, MC
FAICDIndependent Non-Executive Director
Patricia Cross
BSc(Hons), FAICDIndependent Non-Executive Director
RichardGoodmansonwasappointedtotheQantasBoardinJune2008.HeisaMemberoftheRemunerationCommitteeandaMemberoftheSafety,Health,EnvironmentandSecurityCommittee.MrGoodmansonisaDirectorofRioTintoplcandRioTintoLimited.From1999to2009hewasExecutiveVicePresidentandChiefOperatingOfficerofE.IduPontdeNemoursandCompany.Previoustothisrole,hewasPresidentandChiefExecutiveOfficerofAmericaWestAirlines.MrGoodmansonwasalsopreviouslySeniorVicePresidentofOperationsforFrito-LayInc.andwasaprincipalatMcKinsey&CompanyInc.Hespent10yearsinheavycivilengineeringprojectmanagement,principallyinSouthEastAsia.MrGoodmansonwasborninAustraliaandisacitizenofbothAustraliaandtheUnitedStates.Age:63
Richard Goodmanson
BEng(Civil), BCom, BEc, MBAIndependent Non-Executive Director
JohnSchubertwasappointedtotheQantasBoardinOctober2000.HeisChairmanoftheSafety,Health,EnvironmentandSecurityCommitteeandaMemberoftheNominationsCommittee.DrSchubertisaDirectorofBHPBillitonLimitedandBHPBillitonplc.HeisalsoChairmanofG2TherapiesLimitedandtheGreatBarrierReefFoundation.HewasmostrecentlyChairmanoftheCommonwealthBankofAustraliaandwasalsopreviouslyChairmanofWorleyParsonsLimitedandPresidentoftheBusinessCouncilofAustralia.DrSchubertwasalsoManagingDirectorandChiefExecutiveOfficerofPioneerInternationalLimitedfrom1993until2000.DrSchubertheldvariouspositionswithEssoinAustraliaandoverseas.In1983,hewasappointedtotheBoardofEssoAustralia.In1985,DrSchubertbecameEsso’sDeputyManagingDirectorandin1988hebecameEsso’sChairmanandManagingDirector.Age:67
Dr John Schubert
BE, PhD, FIEAust, CPEng, FTS, FIChemEIndependent Non-Executive Director
JamesStrongwasappointedtotheQantasBoardinJuly2006.HeisChairmanoftheRemunerationCommitteeandaMemberoftheNominationsCommittee.MrStrongwastheChiefExecutiveOfficerandManagingDirectorofQantasbetween1993and2001,followinghisappointmenttotheBoardin1991.HeisChairmanofWoolworthsLimited,KathmanduHoldingsLimitedandtheAustraliaCouncilfortheArts.HeisalsoamemberoftheNomuraAustraliaAdvisoryBoardandaDirectoroftheAustralianGrandPrixCorporation.MrStrongwasformerlytheChairmanofInsuranceAustraliaGroupLimited,aDirectorofIAGFinance(NewZealand)Limited,theGroupChiefExecutiveoftheDBGroupinNewZealandandNationalChairmanofPartnersofCorrsChambersWestgarth.HewasalsoChiefExecutiveOfficerofAustralianAirlinesfrom1985until1989.Hehasbeenadmittedasabarristerand/orsolicitorinvariousstatejurisdictionsinAustralia.Age:66
James Strong, AO
Independent Non-Executive Director
BarbaraWardwasappointedtotheQantasBoardinJune2008.SheisaMemberoftheSafety,Health,EnvironmentandSecurityCommitteeandtheAuditCommittee.MsWardisChairmanofCountryEnergy,aDirectorofanumberofBrookfieldMultiplexGroupcompaniesandO’ConnellStreetAssociatesPtyLtd,andisontheAdvisoryBoardofLEKConsulting.ShewasformerlyaDirectoroftheCommonwealthBankofAustralia,LionNathanLimited,BrookfieldMultiplexLimited,AllcoFinanceGroupLimited,RecordInvestmentsLimited,DataAdvantageLimited,RailInfrastructureCorporationandDeltaElectricity.ShewasChairmanofNorthPowerandaBoardMemberofAllensArthurRobinson.MsWardwasChiefExecutiveOfficerofAnsettWorldwideAviationServicesfrom1993to1998.Beforethat,MsWardheldvariouspositionsatTNTLimited,includingGeneralManagerFinance,andalsoservedasaSeniorMinisterialAdvisertoTheHonPJKeating.Age:56
Barbara Ward
BEc, MPolEcIndependent Non-Executive Director
PatriciaCrosswasappointedtotheQantasBoardinJanuary2004.SheisaMemberoftheAuditandRemunerationCommittees.MrsCrossisaDirectorofNationalAustraliaBankLimited,JBWerePtyLimited,theMurdochChildrensResearchInstitute,theGrattanInstituteandtheMethodistLadiesCollege.SheisaMemberoftheGovernment’sAustralianFinancialCentreForumandMelbourneUniversity’sAdvisoryCounciltotheFacultyofBusinessandEconomics.MrsCrosswaspreviouslyadirectorofWesfarmersLimited,ChairmanofQantasSuperannuationLimitedandDeputyChairmanofVictoria’sTransportAccidentCommission.Shehasservedonavarietyofpubliclylisted,government,universityandprivatecompanyboards.Priortobecomingaprofessionalcompanydirectorin1996,MrsCrossheldseniorexecutivepositionswithChaseManhattanBank,BanqueNationaledeParisandNationalAustraliaBank.Age:51
67 AnnuAl Review 2010
2010 2011
18 February Halfyearresultannouncement 17 February Halfyearresultannouncement
30 June Yearend 7 March Recorddateforinterimdividend*
12 August Preliminaryfinalresultannouncement 6 April Interimdividendpayable*
29 October AnnualGeneralMeeting 30 June Yearend
24 August Preliminaryfinalresultannouncement
13 September Recorddateforfinaldividend*
12 October Finaldividendpayable*
28 October AnnualGeneralMeeting
*SubjecttoadividendbeingdeclaredbytheBoard.
2010 ANNUAL GENERAL MEETINGThe2010AGMofQantasAirwaysLimitedwillbeheldat11:00amonFriday29OctoberinAdelaide.FurtherdetailsareavailableontheCorporateGovernancesectionoftheQantaswebsite(atwww.qantas.com)
REGISTERED OFFICEQantasAirwaysLimitedABN16009661901QantasCentreLevel9BuildingA203CowardStreetMascotNSW2020AustraliaTelephone+61296913636Facsimile+61296913339www.qantas.com
QANTAS SHARE REGISTRYLevel12680GeorgeStreetSydneyNSW2000AustraliaorLockedBagA14SydneySouthNSW1235AustraliaFreecall1800177747International+61282807390Facsimile+61292870303Emailregistry@qantas.com
STOCK ExCHANGEAustralianSecuritiesExchange20BridgeStreetSydneyNSW2000Australia
DEPOSITARY FOR AMERICAN DEPOSITARY RECEIPTSTheBankofNewYorkMellonADRDivisionLevel22101BarclayStreetNewYorkNY10286USATelephone+12128152276Facsimile+12125713050
CompanySecretaryCassandraHamlin
AnonlineversionofthisAnnualReviewisavailableatwww.qantas.com
P.65photocredit:JasonCapobianco.CourtesyofBangarraDanceTheatre
P.1photocredit:TimBauer.www.timbauerphoto.com
DesignedbyYello.www.yellobrands.com
Financial Calendar
Cert no. SCS-COC-001360
the qAntAs GRoup 68
1. Captain James Boland senior training captain b7372. Tameka Lee snapfresh team member3. Pete Ashmore flight Dispatch officer4. Kylie-Jane Menzies nsw business Development
manager5. Leissa Geia qantas freight customer
support officer6. Tim Michel international telephone sales7. Clint Dale flight Attendant, qantaslink8. Karen Lonergan executive manager,
performance and culture9. Sheela Rowlands customer service Agent,
qantas club
10. Davis Kwok q catering Driver11. Amelia-Jayne Parker Jetstar international cabin crew12. Majida Bazzi q catering wash team13. Alan Milne manager maintenance
operations centre14. Melinda Black manager financial services
marketing, qantas loyalty15. Mark Gilmour second officer b74416. Paul White fleet presentation coordinator17. Justin White premium customer service Agent18. Victor So Aircraft maintenance engineer
– line maintenance operations A380
19. Kelly Seward Group sales consultant20. Captain Mike O'Neill A380 captain21. Lauren Dickson customer service manager
Jetstar international22. David Fuelling manager Aircraft trading23. Jonathan Hards licensed Aircraft maintenance
engineer – line maintenance operations A380
24. Mariannel Azarcon senior flight Analyst25. Kerri Atkins flight Attendant, international26. Roger Hedley Airline services operator
– bus Driver27. Andrew Goh customer service manager,
international
28. Suzannah Lutterschmidt Airline service operator
- forklift operator29. Alice Ackerman manager Retail Development
and Advertising30. David Singh it consultant31. Captain Yolanne Baker qantaslink captain32. Yianni Johns Aircraft maintenance engineer33. Wayne Brown Aircraft painter34. Sarah Purser flight Attendant, international35. Stephen Capron technical officer36. Zac Kennedy Jetstar pilot
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qantas Airways limitedAbn 16 009 661 901