Us
Annual The
Sum
of 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
AnnuAl review 2010
The
Sum
of Us
Contents
1TheSumofUs
12ForwardThinking
14ChairmansReport
16CEOsReport
18FinancialPerformance
20SafetyFirst
24SustainableOperations
28StrongComplementaryBrands
Qantas
QantasLink
QantasFrequentFlyer
Jetstar
QantasFreight
qantas.com
QantasAviationServices
JetsetTravelworldGroup
40GreatPeople
44SuperiorInfrastructure
Fleet
Engineering
Catering
Airports
52CaringforCustomers
58EnvironmentalResponsibility
62GivingBack
66BoardofDirectors
68FinancialCalendar
the qAntAs GRoup
2
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 worlds
most experienced airline.
Forward Thinking
3
AnnuAl Review 2010
Safety is our first priority. It underpins everything that we
do. Our unwavering commitment is to worlds 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.
Safety First
the qAntAs GRoup
4
5
AnnuAl Review 2010
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.
Strong Complementary Brands
the qAntAs GRoup
6
Weve been part of Australian life for 90 years,
and weve 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.
Sustainable Operations
7
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. We have 14 stylish Qantas international
lounges, while at home we are the only airline to offer
multi-tiered domestic lounges.
Superior Infrastructure
the qAntAs GRoup
8
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.
Great People
9
AnnuAl Review 2010
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.
Caring for Customers
the qAntAs GRoup
10
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 Groups
business strategy. We also strongly encourage positive
environmental action in the community.
Environmental Responsibility
11
AnnuAl Review 2010
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.
Giving Back
the qAntAs GRoup
12
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
Founded in
Queensland on
16 November
1920
First airline to offer
round-the-world
services via both
hemispheres
1958
Qantas employee
Jack Grant
invented the
inflatable aircraft
escape slide-raft
Invented Business
Class travel
1979
1965
Worlds longest
flight undertaken
by a commercial jet
aircraft: LondonSydney 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
1943-45
Flew the worlds
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
1959
First airline outside
the United States
to fly Boeing 707
jets and to take
passengers by jet
across the Pacific
1974
World record for
largest passenger
load, evacuating
674 passengers
with 23 crew via
B747 after Cyclone
Tracy devastated
Darwin
1980s
Leading role
in developing
Extended Twin
Operations with
the B767-200ER
fleet, dramatically
improving
reliability, saving
fuel and reducing
flight times
2002
1995
Leading role in the
use of Future Air
Navigation system
to optimise routing
and save fuel
First airline to
introduce Rockwell
Collins Multi Scan
radar on B747400ERs to detect
the ice content of
storms and deliver
smoother flying
13
AnnuAl Review 2010
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.
First airline
to introduce
specialised cabin
lighting on long
haul flights to
promote well-being
and reduce jetlag
2003
First airline to
launch low fare
long haul
operations
with Jetstar
2006
First airline to offer
degustation First
Tasting Menu with
Neil Perry cuisine
2007
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
Only airline to offer
Premium Economy
with in-arm inflight
entertainment
Next generation
flying with the
arrival of the first
of our B787 fleet
2008
2012
2008
2008
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
2006
First airline to
perform a landing
using the satellite
technology-based
Global Landing
System with a
B737-800
2008
Introduced the
Qantas Airbus
A380, the worlds
first passenger
aircraft cabin
wholly conceived
by one acclaimed
designer: Marc
Newson
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
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 worlds 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
2010
Introduced a new
era of domestic
flying with
Next Generation
Check-in
2020
Centenary
of Qantas
the qAntAs GRoup
14
Chairmans Report
This year the Qantas Group trebled last years profit
by taking rapid advantage of improving conditions,
and by maximising the strengths of Qantas and Jetstar,
its two complementary flying brands.
IampleasedtoreportthattheQantas
Groupdeliveredagoodresultfor
2009/2010andlaidthegroundwork
forcontinuingandsustainablesuccess.
Highlights
Highlightsoftheyearwere:
UnderlyingProfitBeforeTax
of$377million
Revenueof$13.8billion
Operatingcashflowof$1.3billion
Cashheldatyearendof$3.7billion
In2008/2009theGroupstoodout
intheglobalaviationsectorbyrecording
aprofit,duetoitsdecisiveresponseto
theglobalfinancialcrisis.Thisyearthe
Grouptrebledthatprofitbytakingrapid
advantageofimprovingconditions,and
bymaximisingthestrengthsofQantas
andJetstar,itstwocomplementary
flyingbrands.
Key factors
Keyfactorsintheresultthisyearincluded:
ArobustperformancebyQantas,which
wasAustraliasmostprofitableand
punctualdomesticairline,andwhich
achievedasignificantlyimproved
internationalperformancedespite
globaluncertaintyandtheimpact
ofthevolcanicashdisruptions
ArecordprofitbyJetstar,whichgrew
passengerrevenueby21percent
andincreasedinternationalcapacity
by50percent
ArecordperformancebyQantas
FrequentFlyer,withall-timehighs
incustomersatisfactionandbenefits
derivingfromenhancedalliance
relationships,notablywiththe
WoolworthsGroup
Industry-leadingfinancialstrength,
includingcashholdingsof$3.7billion,
increasedoperatingcashflow,andthe
bestcreditratingofanyairlineinthe
world
Continuinginvestmentinamodernand
simplifiedfleet,witharound160aircraft
onorder,andanaverageofone
deliverypermonthplannedforthe
nexteightyears
Continuinginnovationandimprovement
inthecustomerexperience,including
theindustry-leadingNextGeneration
Check-in
Significantprogresstowards$1.5billion
inpermanentsavingsoverthreeyears
throughtheQFutureprogram,with
$533millioninsavingsachievedthis
year,alliedtoabusinesstransformation
andsimplificationagenda
Industry context and outlook
In2009/2010globaloperatingconditions
improvedfromhistoriclows,withrecovery
indemandinboththepassengerand
freightmarkets.Internationaldemand
improvedacrosspremiumandleisure
sectors.Domesticbusinessdemandalso
returnedstrongly,althoughdomestic
leisuredemandcontinuedtoberelatively
softlateinthefinancialyear.
Lookingahead,theAustralian
commercialaviationsectorwillremain
highlycompetitive,bothdomestically
andinternationally.Aviationisacomplex
industry,subjectbothtolong-term
economiccyclesandshort-termshocks,
withhighfixedcostsandlonginvestment
leadtimes.Theindustryisglobalising
unevenly,andstillsuffersovercapacity
andhighstart-upanddrop-outrates.
Tosucceed,theQantasGroupstwo
flyingbrandswillbecompetingvigorously
everydayintheirdifferentmarket
segmentsthefullserviceQantasand
thelowfaresJetstar.
Reporting clarity
ThisyeartheGroupintroducedanew
primaryreportingmeasure:Underlying
ProfitBeforeTax(PBT).Thisisa
non-statutorymeasurewhichisnow
beingusedbytheBoardofDirectors
andExecutiveCommitteetoassessand
improvetheperformanceoftheGroup.
UnderlyingPBTmakesiteasierforthe
Groupanditsshareholderstoidentify
howwelltheGroupmanagesthose
businessfactorsitcontrols,byeliminating
thedifficultystatutoryaccounting
treatmentsposeinrecordingone-off
andhigh-changefactorssuchashedge
volatilityincurrenciesandfuel.
15
Dividend approach
TheBoardrecognisesthedesirability
ofreturningadividendtoshareholders
whereverpossible,andcareful
considerationwasgiventothismatter.
OverthecomingperiodtheQantasGroup
willneedtoserviceitsveryhighcapital
requirements,andretainingahighcredit
ratingremainsapriority.Theeconomic
outlookandcompetitivesituationwill
continuetobechallengingandpotentially
volatile.Withthisinmind,theBoardhas
determinednottodeliveraninterimor
finaldividendin2009/2010,andfuture
dividendswillcontinuetobeassessed
againstongoingearningsperformance
andcapitalrequirements.
People
OnbehalfoftheBoardofQantas,Iwant
tothankallmembersoftheQantas
Groupfortheireffortsthroughtheyear.
Itravelalot,whichmeansIoftengetto
seetheirdedicationatfirsthand,across
Australiaandthroughoutourinternational
networks.Thegoodresultsthisyearare
inlargeparttestamenttotheimmense
dedicationandskillourstaffdisplaydayin
dayout.Theyhavemuchtobeproudof.
L E IGH C L IFFORD, AO
AnnuAl Review 2010
the qAntAs GRoup
16
CEOs 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.
Ithasbeenabusyandproductiveyear
attheQantasGroup.
Ourstrategyistocreatetwoairlines
QantasandJetstarthatarethebestin
theirclass,andwhichwillcontinuetogive
ustheflexibilitytorideeconomiccycles,
leveragedifferentsectorsofthemarket,
andmaintainarobustoperatingcashflow.
Ourfleetstrategyreflectsthisapproach.
WithMarcNewsonssignaturedesign
andadedicatedcrewinallcabins,the
QantasAirbus380hasbecomea
destinationinitsownright.Wewill
have10inserviceby2011,andafurther
10comingintoserviceoverthenext
fiveyears.
Wehavealsobroughtforwardour
orderfor50Boeing787s,withthefirst
nowdueinmid-2012.Wewillbethe
secondlargestairlinecustomerforthese
new-eraaircraftofferingimproved
technologies,loweroperatingcosts,fuel
efficiencies,andgreaterpassenger
comfort.
Thefirst15B787swillgotoJetstar
International,enablingthetransferof
A330-200stoQantasandtheearlier
retirementofeightQantasB767-300ERs,
effectivelyrenewingbothairlinesfleets.
17
Qantas
Itisnow90yearssinceQantasstartedin
outbackQueensland,andweremainhard
atworktomakeajourneywithQantasa
freshandenjoyableexperienceforeach
newgenerationoftravellers.
Inthepastyearwehaveintroduced
morefeaturestogiveourcustomers
greatercontrolandflexibility.Thisincludes
exitrowseatpurchase,additional
baggageallowancepurchase,advanced
seatselectionandcombinedbookingsfor
flights,carhireandtravelinsurance.
WearesuccessfullyintroducingNext
GenerationCheck-in,anditwill
progressivelyberolledoutaroundmajor
domesticports.WithournewQCard
Readers,NextGenerationCheck-inwillbe
assimpleasaflickofacard,andwere
alsosimplifyingthebagdropprocess.
OurQantasrefreshprojectisabout
redefiningtheQantassignatureathome
andintheworldonethatismodern,
caring,distinctive,contemporaryand
consistent.
Cabin:Wearecreatingaseamless
BusinessClassoffering.Wellbeinvesting
millionstoupgradethecabinandseatson
nineB747s,whichwillbringtheminline
withourA380s.Overthecomingyear
ourdomesticfleetwillberevampedwith
anewlookBusinessClassproduct.
On-board: NewdomesticBusiness
Classmenuswillbedesignedbyour
QantasconsultantchefNeilPerrytobe
moreconsistentwithourinternational
offering.Anewinflightentertainment
formatisalsobeingintroduced.
Lounges: Wehaveoneoftheworlds
bestdomesticairlinenetworksandour
internationalloungesdesignedbyMarc
Newsonsetthebenchmarkforglobal
excellence.Wewillbeundertakinga
significantrefreshofQantasClublounge
facilities,withourdomesticBusiness
loungesmodelledonourinternational
Businesslounges.NeilPerry willdesign
thefoodmenus.
OurenhancedQantasFrequentFlyer
programnowhas7.2millionmembers
andcontinuestooffermajoropportunities
fortheGrouptowinandrewardloyal
customers.
AnnuAl Review 2010
Jetstar
WithJetstar,thegoalistocreatethebest
lowfaresairlineintheworld,whichisall
aboutsustainablegrowthandbeingtrue
tothepositiveandenergeticvaluesofthe
brand.Forexample,thisyearJetstarwas
thefirstairlineintheworldtotrialthe
iPadasaninflightentertainmentsystem.
Jetstarhasnowcarriedmorethan
50millionpassengerssincetakingoff
in2004,withmorethanhalfofthem
travellingforunder$100.Itisnowwell
placedinAsiathroughJetstarAsia,which
isbasedinSingapore,andJetstarPacific
inVietnam.Ithasarealopportunityto
achievemore.
Our people
Thisyearourpeoplecontinuedtoexcel:
fromexceptionalcustomercareduringthe
volcanicashcrisis,throughtodeliveringa
worldfirstnewcheck-insystem,theyhave
goneaboveandbeyond.Onbehalfofthe
leadershipteamIwanttoacknowledge
andthankeveryonefortheirefforts.
ALAN JOYCE
the qAntAs GRoup
18
Financial Performance
Revenue $13.8 billion
Underlying Profit Before Tax $377 million
Operating cash flow $1.3 billion
Cash held at year end $3.7 billion
15,627
16
14,552
15,060
15
13,661
13,772
14
13
12
11
10
09
08
07
10
06
TheGroupcontinuedtodeliveragainst
itsstrategicpriorities:
Safetyasnumberonepriority
Optimisingthetwoflyingbrands:
QantasandJetstar
Transformingtheinternationalbusiness
Profitablybuildingon65percent
domesticmarketshare
Enhancingthecustomerexperience
Maximisingthevalueofportfolio
businessesandinvestments
Engagingpeopleanddevelopingtalent
Thisyearsresultreflectsthesuccessofthe
QantasGroupstwoairlinebrandsand
portfoliostrategy.Withallsegments
profitable,theGrouphasaplatformfor
sustainablegrowthasoperating
conditionsimprove.
Revenue ($m)
In2009/2010theQantasGroupdelivered
astrongresultanddemonstratedthatitis
well-positionedforfuturegrowth.
UnderlyingProfitBeforeTax(PBT)tripled.
Liquiditywasstrongwith$3.7billionin
cash,supportinganambitiousongoing
programofinvestmentinfleet,product
andservice.Revenuewas$13.8billion
andoperatingcashflow$1.3billion.
Significantcostsavingswereachieved.The
QFutureprogramexceededitstargetwith
benefitsof$533millionandunitcosts
(excludingfuel)weredownby
4.3percentacrosstheGroup.
10
09
08
07
06
10
09
08
07
Cash Held ($m)
Operating Cash flow ($m)
377
671
1,149
965
1,307
1,408
2,128
2,026
*Figures for financial
years 06, 07, 08
are based on
statutory PBT.
06
10
09 100
08*
07*
06*
Underlying Profit
Before Tax ($m)
2,353
2,599
2,902
3,363
3,704
3,617
19
AnnuAl Review 2010
4
3.5
3
2.5
2
1.5
1
0.5
0
21
AnnuAl Review 2010
Safety is the
Qantas Groups
first priority.
At the heart of our business is an unwavering
commitment to worlds best safety practices
and reporting.
Flying safely
TheQantasGroupisinternationally
respectedforitsdedicationtosafeflying
operations.
QantascarriestheInternationalAir
TransportAssociations(IATA)Operational
SafetyAuditCertificationandissubject
torigorousbiennialreviewstosecureits
renewal,mostrecentlyduring2010.
EachyearQantasinvests$1.4billion
inengineeringandmaintenancetoensure
thatthehigheststandardsofoperational
safetyandperformanceareupheld.Our
on-timeperformanceandreliabilityare
testimonytotheworkdonebyour
engineeringworkforceandtheexpertise
ofourpilots.
Werespondconservativelytoany
mechanicalorperformanceissueand
alwaysputsafetybeforeschedule.Qantas
meets,andinmanycasesexceeds,allits
obligationstoregulators,includingthe
CivilAviationSafetyAuthority(CASA)
andmanyotherinternationalauthorities.
AswithIATA,theseregulatorsaudit
Qantasthoroughlyandfrequently.
Safety management
In2009asingleQantasManagement
System(QMS)wasestablishedcovering
allaspectsofsafety,health,environmental
andsecurityperformance.TheQMS
providesthestructurerequiredtoachieve
ongoingimprovementintheQantas
Groupssafetyperformanceanda
consistentapproachtomanagementand
legislativecompliance.Itisacknowledged
asabest-practicemodelintheairline
industry.
AcrosstheQantasGroup,air,ground
andpeoplesafetypracticesaregoverned
bymandatorypoliciesthatapplytoall
employees.Managersandemployeesare
expectedtodemonstrateanddrivea
genuinecommitmenttosafetythrough
theirpersonalactionsandbyeffective
managementofrisk.Wemeasuresafety
performanceagainstkeymetricsand
recogniseemployeeswhodemonstrate
safetyexcellence.
Security
TheQantasGroupdoesnotcompromise
whenitcomestothesecurityofour
operations,customersandstaff.We
workcloselywithAustralianGovernment
agenciesinAustraliaandoverseasto
assessandrespondtosecurityissues
whentheyariseandensurethatpolicy
andregulatorychangesareimplemented
effectively.
Politicalissueswiththepotentialto
impacttheGroupsuchasthecivilunrest
inBangkokinearly2010aremanaged
throughheightenedthreatmonitoring
andassessmentprocesses,security
coordinationonthegroundand
operationalcontingencyplans.
Qantasspecialevents,suchasthe
Formula1AustralianGrandPrixand
QantasSoccerooseventsinAustraliaand
attheFIFAWorldCup,areprotectedby
carefullyplannedsecurityoperations.
the qAntAs GRoup
22
Occupational health and safety
TheQantasGroupsOccupationalHealth
andSafety(OHS)programshelpuswork
towardsourgoalofzeroinjuriesthrough
effectivesystems,ahealthyandsafework
environmentandastrongsafetyculture.
BusinessunitshavetailoredtheOHS
managementsystemtotheirriskprofiles
andoperationalneeds
Ahealthsurveillanceprogrammonitors
workplaceconditionsandemergingrisks.
Thisprogramincludesenvironmental
monitoringandhealthassessmentsfor
relevantemployeegroups.
Performance
TheQantasGrouphasbeenusingLost
TimeInjuryFrequencyRate(LTIFR)asa
primaryindicatorforOHSperformance
since2001,resultinginan85percent
reductionoverthistime.Performance
indicatorsandtargetsarecontinually
underreviewtoensuremanagement
hastherightinformationtoimprove
OHSperformance.
Commencingin2010/2011,wewill
transitiontoTotalRecordableInjury
andLostWorkCaseFrequencyRatesas
partoftheQantasGroupscontinued
commitmenttomoremeaningful
measurementofinjuryprevention
performance.Thistransitionaimsto
improvethevisibilityofQantasGoup
workplaceincidents.
Performance highlights:
Lost Time Injury Frequency Rate reduced
from 31.7 (2001/2002) to 4.3 (2009/2010)
No workplace fatalities in 2009/2010
23
AnnuAl Review 2010
C ASE S TUDY
Managing the ash cloud
The eruption of the Eyjafjallajkull volcano in Iceland on 15 April
2010 had an unprecedented impact on airlines around the world.
ForQantas,itshutdownourEuropean
servicesforsixdays,impactingover
15,000customers.
Weimmediatelyactivatedour
CrisisManagementCentre,where
adedicatedteamofQantasemployees
fromacrossthebusinessmanagedour
responseandrecoveryoperations.
OurIntegratedOperationsCentre
(IOC),Qantas24-hourhubfor
operationalplanningandcontrol,was
vitalindevelopingandimplementing
acoordinatedapproach.FromtheIOC,
Qantasflightdispatchandflight
operationsteamsandQantasMeteorology
remainedinconstantcontactwiththe
relevantairtrafficcontrolauthorities
inEurope,monitoringthelevelofash
concentrationandrelatedairspace
restrictions.
Qantasexperienceinplanningand
operatingservicessafelyinareasof
knownvolcanicactivity90percent
ofourinternationaloperationstraverse
suchareaswasinvaluableininforming
ourresponsetothesituation.
Throughouttheperiodofdisruption,
weputourcustomersfirst.Operational
teamsworldwide,alongwithourspecialist
crisisteams,gavehumanitariansupport
tocustomersstrandedawayfromhome
andprovidedassistanceinkeyairports.
Securingaccommodationforthese
passengerswasessential.Intotal,Qantas
providedover15,000roomnightsinover
50hotels,acrosssixcountries.
Aftercarefullyconsideringallrelevant
factors,andcloseliaisonwithEuropean
authorities,Qantasresumedallservices
betweenEuropeandAustraliaon
21April.
Directlyandindirectly,ourcustomers
havetoldusthatweexceededtheir
expectations,givingatangible
demonstrationofourcommitment
tocustomercareandsafety.
I wanted to let you know how impressed I was with your
teams 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.
Jon At h A n n y e
qA n tA s pA s sen G e R
25
AnnuAl Review 2010
Weve 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.
Aviationisrecognisedasoneofthe
worldsmostdifficultindustries.Itis
notstraightforward.Evenduringthe
bestofeconomictimes,producing
superiorindustryreturnsisachallenge.
Aircraftownershipcarriessteep,fixed
costs.Variableexpenses,inparticularfuel
andlabour,constituteadisproportionate
shareofcostsandcanbedifficultto
control.Aviationisverysensitivetothe
upsanddownsofeconomiccycles,and
pronetosuddenshockscausedby
environment,healthandsecurityissues.
Theindustryhasgrappledwithovercapacityformanyyears,withincreasing
competitionfromlowercostandoften
government-supportedairlines.
SoatQantaswenevertakeour
positionforgranted,andourapproach
tosustainabilitycontinuestoevolve.
Sustainabilityissues,performance
andprogramsareintegratedthroughout
thisAnnualReview.TheQantasGroups
RiskManagementFrameworkestablishes
acommonapproachforidentifying,
assessingandmanagingrisksandthis
issupportedbythewiderCorporate
Governanceframeworktoensurethe
protectionandenhancementof
shareholdervalue.
Sustainability frameworks
TheQantasGroupdrawsuponvoluntary
sustainabilityframeworkssuchasthe
GlobalReportingInitiativeG3
SustainabilityReportingGuidelines.
Weareincludedinkeyresponsible
investmentindexes:theDowJones
SustainabilityIndex(DJSI)AsiaPacific,
andtheFTSE4GoodGlobalIndexand
Australia30Index
In2009Qantascameequal5th
intheBestEnvironment,Social,
Governance(ESG)disclosures
categoryatthe2009Australasian
InvestorRelationsAwards
Keysustainabilitymetricscanbefound
onpages107to114oftheAnnual
Report.Supplementaryinvestor
sustainabilityinformationcanbefound
intheQantasDataBook,availablefrom
qantas.com
the qAntAs GRoup
26
Sustainable
Operations
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.
Industry challenges
and opportunities
Examples of how the
Qantas Group responds
Maintainingthehighest
standardsofsafety
Commitmenttosafetyasfirstpriority,underpinnedbyindustry-leading
policies,systemsandtraining
Developingresiliencetofinancialcycles
andrealisinginvestmentopportunities
Investmentgradecreditratingtolowercostofcapital
Strongcashpositiontolowerriskandprovideforunexpectedevents
Costmanagementprogramstogenerateefficienciesandlong-term
financialsustainability
Adaptingbusinessstrategytomanage
changingeconomicconditions
Twoflyingbrandsstrategytoadjustcapacity,pricingandmarketsegmentation
asthemarketmovesupordown
QFuturetransformationprogramtoincreaseresponsiveness
Remainingcompetitiveinachallenging
andvolatileindustrycontext
Fleetrenewaltoreducelong-termcostsandgrowrevenues
Strongalliancerelationshipsandstrategicinvestmentstospreadriskand
opportunityacrossmarketsandprovidenetworkdepth
Qantas:innovationstodrivehighersatisfactionandimprovedcustomeradvocacy;
focusontheend-to-endcustomerexperience;improvementsinproduct
consistencyacrossthefleetincludingaircraftreconfiguration;brandrenewal;
pursuitofefficienciestolowerthecostbase;CustomerCharterestablished
Jetstar:effectivecapacitymanagement;strongpromotionalcampaigns;
ground-breakingstrategicalliancerelationships(egAirAsia);Customer
Charterestablished
Pursuinggrowthopportunities
inemergingmarkets
Qantasalliancerelationshipswithcarriersinemergingmarkets(egLANand
ChinaEastern)
Jetstarpan-AsianstrategyincludingJetstarPacific(Vietnam)andJetstarAsia
(Singapore)
Engagingwithstakeholdersand
regulatorsacrossmultiplemarkets
Strongstakeholderrelations,withactiveparticipationingovernmentandindustry
consultationsandseniorrepresentationinindustryassociations(egIATA)
ComprehensiveGroupPolicyFrameworkguidingcompliancewithlaws
andregulationsinthecountriesinwhichtheGroupoperates
Respondingtounexpected
shocksandcrises
Purpose-builtCrisisManagementCentrewithdetailedcrisismanagementplans
Scenarioplanningsupplementedbysimulatedcrisistrainingexercises
27
Industry challenges
and opportunities
AnnuAl Review 2010
Examples of how the
Qantas Group responds
Managingcurrencyand
fuelpricefluctuations
Award-winningTreasuryfunction
Hedging,includingoptions,toenableparticipationwhenoilpricesarelow
andprotectionwhenoilpricesarehigh
Exploitingnewtechnologies
BreakthroughproductandserviceinnovationssuchasNextGenerationCheck-in
Commitmenttotechnologicallyadvancedaircraft(egAirbusA380,Boeing787)
Enhancingbrandstrength
andcustomeradvocacy
Detailedcustomerresearchtodriveimprovementsandadvocacy
Extensiveprogramofsponsorshipsandcharitablegivingthroughstaff
initiativesandQantasFoundation
Industrypartnershipstopromotetourism,businessandevents
Operatinginanenvironmentally
sustainablemannerandmanaging
carbonrisk
Fuelefficiencyprogram,investmentinadvancedtechnologiesandfuelefficient
aircraft,airtrafficmanagementleadership,sustainableaviationfueldevelopment
Advocacyonlegislative,regulatoryandcommercialissues
Carbonoffsetschemes,partnershipswithenvironmentalorganisationsand
engagementwithemployees
Proactiveapproachtocarbonreadinessinadvanceofregulatory/legislative
requirements
Developinghumancapital
andengagingemployees
Leadershipprogramsfortop100-500managers
TalentprogramsincludingGraduateProgram,EmergingLeaderProgramand
theHarvardLeadershipProgram
Majorapprenticeshipprogramforengineers
QantasOrganisationalBehaviourstodriveculturalchange
Systematicapproachtounionnegotiationsincludingimprovingunionrelations
29
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.
Adiverseportfolioofassetsgivesthe
QantasGroupstabilityofearningsand
thecapacitytoapplyleverageindifferent
sectorsofthemarket.Aninvestmentgradecreditratingsupportstherenewal
ofourfleet,infrastructureandproduct,
andwemaintainliquiditythrougha
strongoperatingcashflow.
Domestically,thecombinationof
QantasandJetstariskeytotheQantas
Groupmaximisingitsshareofthe
Australianaviationmarket.Inregional
Australia,QantasLinkconnectstourism
andbusinesscentresusingastate-of-theartfleet,acrossanetworkofover
50destinations.
Internationally,Qantasisranked
amongtheworldsleadingairlines,with
areputationforoperationalexcellence
andqualityofproductandservice.
TheJetstarbrandisnowestablished
andincreasinglypopularacrossAsia,
AustralasiaandtheSouthPacific,with
ambitiousplanstogrowfurtherasitsfleet
increasesinsize.
Alongsidethecoreflyingbrands,
QantasFrequentFlyerandQantasFreight
openupfurtherrevenuestreamsforthe
QantasGroup,enhancingourabilityto
adapttochangingmarketconditions.
Qantasalliancenetworkgivesour
customersaccesstoarangeofhighqualityairlinepartners,providing
extensivecodeshareservicesinEurope,
NorthAmericaandtheAsia-Pacific.
How the two-brand strategy works
In2009/2010QantasandJetstaroperated
jointlyon26routesinAustraliaand
internationally.Clearbranddefinitionand
differingcustomerdemandsmakethese
parallelservicesacompetitiveadvantage
fortheQantasGroup.Whereitismore
viableforonecarriertooperatethan
both,wehavetheoptionofdeploying
theairlinethatisbestsuitedtomarket
conditionsandpassengerdemand,and
whichwilldeliverthebestreturns.
Domestic routes
Strongdemandacrossthespectrum
fromlow-costleisuretopremium
businessallowedJetstartojoinQantas
on22routeswithinAustralia,including
Sydney-MelbourneandMelbourneBrisbane,helpingprotectourshare
ofthedomesticmarket.
New Zealand
ShiftingdemandpatternsintheNew
ZealanddomesticmarketsawJetstar
replaceQantasinprovidingtheseservices.
Meanwhile,bothcarriersoperatetransTasmanflights,cateringtohigh-density
businessandleisuretravel.
Japan
JetstartooktheleadontheQantasGroup
flyingtoJapanastheeconomicslowdown
hitthecountryhowever,increasing
demandatbothendsofthemarketsaw
JetstarrelaunchCairns-Osakaflightsand
QantasincreasecapacityonSydney-Tokyo
servicesin2009/2010.
Indonesia
QantasoperatesservicestoJakarta,
Indonesiascentreofbusinessand
government,whileJetstarservesboth
JakartaandtheresortislandofBali.
the qAntAs GRoup
30
Qantas is a full-service, premium carrier. In 2010 we were
again named one of the worlds top 10 airlines in the SkyTrax
World Airline Awards.
Wedeliverworld-classproductandservice
acrossacomprehensivedomesticand
internationalnetwork.Ourapproach
tooperationalsafetyisuncompromising.
Qantasoperatesover2,300flightsa
weekwithinAustraliaandover600flights
aweekinternationally.In2009/2010we
completedmorethan150,000flights.
WithinAustralia,improvingdemand
hasenabledustoincreasecapacityon
domesticroutes,andweareinvesting
stronglyinourterminalinfrastructurein
keyhubs,includingCanberraandPerth.
TheintroductionofnewAirbusA330-200
aircraftintothedomesticnetwork,
offeringstate-of-the-artseatingand
inflightentertainment,hasimproved
Qantasofferingonkeysectors.
ThephasedintroductionoftheawardwinningA380oncoreinternationalroutes
totheUKandNorthAmericahas
upgradedbothcapacityandproducton
theseservices,andwearealsoincreasing
capacitytoSouthAfricaandonsome
Asianroutes.Qantaswasthesecond
airlinetobringtheA380intoservice,and
theaircraftremainsthecentrepieceofour
fleetrenewalprogram,togetherwiththe
Boeing787.Nootherairlineoperatesthe
A380onthetrans-Pacificroutebetween
AustraliaandtheUSA.
Ourexpertconsultantsfromdesigner
MarcNewsontochefNeilPerryrepresent
thebestofAustraliaandhelpusachieve
thehigheststandardsofqualityonthe
groundandintheair.
In2009/2010weconsolidatedand
expandedourcodesharewithBritish
Airways(BA),bothonJointServices
Agreement(JSA)routesbetweenAustralia
andtheUKandonservicesbetween
LondonandEurope.Wealsoexpanded
codesharingwithChinaEasterntoinclude
servicestoShanghaifromSingaporeand
ondomesticflightswithinChina.The
oneworldalliance,ofwhichQantasis
afoundingmember,isratedtheleading
globalairlinegrouping.
Movinginto2010/2011,Qantas
isconcentratingmorethaneveron
ensuringexemplaryproductandservice
forcustomersineverypartofthe
business.Thiseffortisaboutdeliveringthe
bestofQantas,acrossallofQantas.
Bylisteningcarefullytoourcustomers,
wearestrivingtoimproveeveryaspectof
thetravelexperience.Inthepastyear,we
haveintroducedanumberofnewfeatures
togivecustomersmorecontroland
flexibility,andwearemovingforwardwith
amajorprojecttoenhancethepre-flight
experience:NextGenerationCheck-in
(seep.54).
RenewingQantasisthekeytodelivering
afreshandenjoyableexperienceforeach
successivegenerationoftravellers.Through
theseinitiativesandothers,weareseeking
tomakeQantasagenuinenextgeneration
premiumairline,andtodefineaQantas
brandthatismodern,caringanddistinctive.
On-time performance
We 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.
31
Australian International Design Award 2009 for the A380 Economy Seat
Best Long Haul Airline, 2009 ULTRAS (UK Daily Telegraph)
Best Airline Australasia, 2009 Skytrax World Airline Awards Aviation Category
Cond Nast Traveller Innovation and Design Awards 2009 for A380 design
Best Airline Accessory, Cutlery for Qantas, Wallpaper Design Award 2009
Chicago Athenaeum Good Design Award for the First Suite in 2009
SkyTrax Best Premium Economy Class Seat 2010
Aircraft configuration:
meeting customer demand
Thepremiumtravelmarketischanging
fundamentallyatrendthatpre-datesthe
2008/2009financialcrisis.
Theaircraftconfigurationprogram
weannouncedinFebruary2010isour
responsetothisevolvingmarket.Itisa
$400millioninvestmentoverthreeyears
inupgradingnineB747aircraftand
reconfiguringourA380fleettoenable
ustomeetforecastchangesinpassenger
demand,maximiseyieldsandgenerate
revenueandinvestorreturns.
Overall,thereconfigurationwillsee
capacityequivalenttomorethanthree
B747sbeingaddedtotheQantasfleet.
Itwillresultina20percentincreaseper
passengerintheamountofFirstand
BusinesscabinspaceavailabletoQantas
customers,whilePremiumEconomy
capacityonourlong-haulfleetwillgrow
by27percent.
Byupgradingthecabinandseat
productonourB747s,wewillgiveall
ourlong-haulcustomersaccesstoan
A380-standardflightexperience
buildingonoutstandingpassenger
satisfactionwiththeA380.
Inadjustingthebalanceofseating
classesonbothtypesofaircraft,weare
ensuringthatourinternationalflying
capacityisbettermatchedtodemand
patternsandmorecompetitiveoncore
routes.
WeremaincommittedtoFirstClass
travel,and12ofourA380aircraftwill
continuetofeatureouraward-winning
FirstSuites.Ontheremainingeight
A380andnineB747aircraft,Business,
PremiumEconomyandEconomycapacity
willbemorecloselymatchedtomarket
expectations.
Aircraftreconfigurationispartof
ouroverarchingQFutureprogram,
abusinessefficiencydrivethatcovers
allaspectsofQantasactivity.
AnnuAl Review 2010
the qAntAs GRoup
32
QFuture
Underlying 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.
Engineering
supply chain
Aircraft utilisation
and scheduling
Alliances
Reviewingmaintenancecontractsand
seekingtochangebusinessmodels
and/orworkwithsupplierstoidentify
improvementopportunities
Lookingatmateriallogisticsacross
inventoryprocurementandrepair
processesasameansofconserving
cashwithintheQantasGroup
Reviewingwarehousingrequirements
toensurespaceisoptimised
ITenablementprojecttoensurethat
therightamountofinventoryisstored
intherightlocationaroundthe
networkandimprovinginventory
availabilitythroughstatisticalanalysis
Moreefficientapproachtoaircraft
utilisationandschedulingwith
aircrafttypeandcapacitybetter
alignedtodemand
Reducingthetimeaircraftspendon
theground,creatingopportunities
forincreasedcapacityanddomestic
orinternationalgrowth,andmore
effectiveuseoflongaircraftlayovers
overseas
In2009/2010upgradedSydney-Tokyo
servicesfromA330toB747,announced
aseventhdailySydney-Johannesburg
serviceandimprovedconnectivityfor
servicesthroughHongKong
A330-200aircraftbroughtintoservice
ondomesticnetworktoincrease
capacityandupgradeproduct
Developingandleveragingalliances
toimproveQantaspositioninkey
markets
Identifyingopportunitiestoadddepth
toQantasnetwork,attractnew
customersandgeneraterevenue
In2009/2010expandedcodeshare
relationshipwithBAonsectors
betweenLondonandEurope,and
extendedJointServicesAgreement
withBAonAustralia-UKroutes
AddedsevennewChinesecitiesto
domesticcodesharearrangementwith
ChinaEasternandbegancodesharing
onChinaEasternservicesbetween
SingaporeandShanghai
Buildingpartnershipstogrowing
marketssuchasIndia,SouthAmerica
andRussia
33
AnnuAl Review 2010
QFuturewaslaunchedinJuly2009asan
integralpartofourStrategicandFinancial
Plan,targetingbenefitsof$1.5billionover
thethreeyearsto2011/2012.QFuture
isabout:
creatingvalueforourcustomers
Optimisingrevenueandmargins
Drivingoperationalefficiency
Engagingourworkforce
ArangeofQFutureprojectsareunderway
acrossallareasofthebusiness.In2010
reviewswereintroducedtoidentifyfurther
strategicinitiatives,highlightimprovement
opportunitiesandhelpbusinessareas
worktowardsunitcostreduction.
Thefirsttworeviews,undertakenin
CustomerandMarketingandAirports,
resultedinarangeofopportunities
beingaddedtotheQFutureagenda
andfurtherreviewsareplannedover
thenextfinancialyear.In2009/2010
QFutureprojectsdeliveredbenefitsof
$533million,exceedingexpectations.
Procurement
transformation
Business Information
Solutions (BIS)
transformation
Office
consolidation
Improvingstrategy,governance,
organisation,performance
measurementandreportingacross
QantasProcurement
Adoptingleadingpracticesourcingand
categorymanagementprocesses
Implementingnewprocure-to-pay
technologyandprocessestodrive
operationalefficiency
Workingtoimprovetheprocurement
experienceforQantasbuyersand
suppliers
Targeting$100millionincostsavings
fromimprovementsinITservicedelivery
In2009/2010completeddesktopand
end-usercomputertransitiontoFujitsu,
resultinginbroaderrangeofproducts,
betteruserexperienceandlower
unitcosts
Commencedroll-outofimproved
emailplatformtoenhanceemployee
communication,andimplemented
changestoprogramdeliveryservices
tobettermeetbusinessdemand
Structuralandculturalchangesto
developandengageemployees,
infrastructureanddeliverychanges
toenhanceoperationalefficiency
MajorrefurbishmentofQantas
Mascotcampus,commencing
inlate2010
Modern,open-planoffice
environmentforaconsistentlook
andfeelandabetterworking
environmentforemployees
Energyefficientdesignwill
supportenvironmentaltargets
andreduceenergycosts
Communalspacestoencourage
collaborationamongQantas
employeesworkinginand
visitingtheMascotcampus
the qAntAs GRoup
34
QantasLink plays a vital role in providing air
services for communities and businesses in
regional Australia.
A$600millioninvestmentin21next
generationBombardierQ400regional
aircrafthasdeliveredasuperiorproduct
toQantasLinkcustomers,capacitygrowth
incoremarketsandenabledexpansion
intonewdestinations.
QantasLinkoperates2,000flightsa
weekacross54destinationsinAustralia,
plusPortMoresbyinPapuaNewGuinea,
andcarries4.3millionpassengersayear.
During2009/2010QantasLinkadded
significantcapacityinQueenslandand
NSW,andlaunchednewservicestoPort
Lincoln.Wealsolaunchedourfirst
internationalroute,betweenCairnsand
PortMoresby,tocatertostrongbusiness
traveldemand.
QantasLinkscommitmenttoregional
Australiagoesbeyondairservices.To
supportournewAdelaide-PortLincoln
service,wehaveestablishedacabincrew
baseinAdelaide.
QantasLinkhasinvestedstronglyin
itsheavymaintenancebaseinTamworth,
whichnowhostsQ400maintenance,
andwesponsorawiderangeofregional
sportingandculturaleventsacross
Australia,aswellassupportingthe
Grew the Q400 fleet to 21 flagship
aircraft, serving 54 destinations in
Australia plus Port Moresby in PNG.
QantasGroupsbroadercontribution
todomestictourismpromotion.Intotal,
QantasLinkprovidesdirectemployment
formorethan1,100peoplein
metropolitanandregionalcentres.
TheQantasLinknetwork,and
QantasLinkcustomers,arefullyintegrated
withQantasglobalnetworkthrough
intrastate,interstateandinternational
connections;accesstotheQantasbooking
systemandqantas.com;FrequentFlyer
andloungebenefits;andaffiliationwith
theoneworldalliance.
35
AnnuAl Review 2010
The Qantas Frequent Flyer program is a key asset for the Qantas
Group. It is Australias premier coalition loyalty program, allowing
members to combine points from flying, credit or debit card spend
and retail spend into a single account.
QantasFrequentFlyermemberscan
accumulatepointsonflightswithQantas,
withJetstarandwith25codeshareor
oneworldpartnerairlines,drawingon
theQantasGroupsstrategicalliance
relationships.
Morethan480QantasFrequentFlyer
partnersacrossarangeofcategories
enablememberstoearnpointsinreturn
foreverydayexpenditure,suchasgroceries.
Theyear-oldpartnershipbetween
QantasFrequentFlyerandWoolworths
givesmembersunprecedentedscope
toearnpoints.
During2009/2010QantasFrequent
Flyerstrengtheneditslinkswithdirectearn
creditcardpartnerssuchasANZ,
AmericanExpress,Citibank,
CommonwealthBank,DinersClub,
NationalAustraliaBank,StGeorge
andWestpac.
QantasFrequentFlyeralsoprovides
memberswithflexibilityinredeeming
points,offeringarangeofoptionsfor
bookingseats.Pointscanbeusedfor
upgraderequests,transferredbetween
familymembersortopurchaseover1,200
productsandexperiencesfromtheQantas
FrequentFlyerstore.Weareconstantly
seekingnewwaystoincreasethisscale
andflexibilityandenhancethevalueour
customersgetfromtheirFrequent
Flyerearnings.
In2009/2010morethan1.4million
newmembersjoinedQantasFrequent
Flyer,takingthetotalnumberofmembers
to7.2million.
Reached 7,000,000
Qantas Frequent Flyer
members in 2009/2010.
the qAntAs GRoup
36
Jetstars growth in Australia, New Zealand and across the AsiaPacific 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.
SixyearsafterlaunchingAustraliandomestic
servicesJetstaroffers2,350flightsaweek
withinAustralia,NewZealand,Asiaand
internationally.TheJetstarnetworkincludes
52destinations,andin2009/2010Jetstar
carried14.6millionpassengers(excluding
JetstarPacific).
Jetstaroffersmorethan1,300flights
aweekto30destinationsonitsdomestic
short-haulnetworkwithinAustraliaand
internationalservicesfromAustralia.
TheexpansionoftheJetstarbrand
intoAsia,fromJetstarAsiasgrowing
SingaporehubandwithJetstarPacificin
Vietnam,hasseenitdrivetheemergence
oflow-costtravelintheworldsfastestgrowingregion.
Domestic and
international expansion
Inlate2009Jetstarannouncedamajor
expansionofdomesticcapacitysupported
bytheadditionoffourA320aircraft,
equatingtotheintroductionofanextra
700,000seatsperyear.OntheJetstar
internationalnetwork,werelaunched
afourtimesweeklyservicefromCairns
toOsakaandcommencedoperations
betweenSydneyandFiji,whileour
servicestoholidaydestinationssuch
asBali,PhuketandHonoluluremain
consistentlypopular.
SincereplacingQantasinoperating
NewZealanddomesticservicesinJune
2009,Jetstarhasestablisheditselfrapidly
inthemarket.Weofferupto84return
serviceseachweekbetweenAuckland,
Wellington,ChristchurchandQueenstown
andwillhaveeightA320aircraftbasedin
NewZealandbyearly2011.
Jetstarcontinuestoplaceastrong
focusonusingtechnologytoimprovethe
passengerexperience,withSMSboarding
passestobeintroducedacrossour
AustralianandNewZealanddomestic
networksaddingtoourexistingweb
check-inoptionsandself-servicekiosks
attheairport.Wehavealsoannounced
planstointroducetheiPadforinflight
entertainmentacrossournetworkin
Australia,operationsfromAustraliaand
potentiallybeyond.Our10-pointcustomer
chartertheJetstarCustomerGuarantee
underlinesourcommitmenttomatching
lowfareswithoutstandingservice.
37
Carried more than
50 million passengers
since 2004, with more
than half travelling
for under $100.
Pan-Asian strategy
JetstarAsiasoperationshavebenefited
fromsubstantialinvestment,withan
additionalthreeA320aircraftallocatedto
ourSingaporehubtosupportpan-Asian
growth,includingthecommencement
ofservicesintomainlandChina.Thishas
supporteda46percentincreasein
passengernumbersthroughSingapore.
Fromlate2010thisgrowthstrategywill
extendtolong-haulflying.Newservices
outofSingaporetoMelbourneand
Aucklandwillbeoperatedbytwodedicated
A330aircraftandcreate200newjobs.
Jetstarisalsodevelopingstrategic
airlinepartnerships.InJanuary2010
weannouncedagroundbreaking
non-revenuepartnershipwithAirAsia.
InJune2010wefurthergrewourinterline
agreementswithAirFrance-KLM,enabling
seamlessticketingacrossbothairlines
networksthefirstsuchagreement
coveringallJetstarairlinessignedwith
afullservicecarrieroutsideQantas.
AnnuAl Review 2010
the qAntAs GRoup
38
qantas.com
and online
channels
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.
Thisisbeingachievedthroughaninternal
efficiencyandtransformationprogram
FreightFuturesandarenewed
emphasisoncustomerservicedelivery.
In2009/2010wecarriedouta
$40millionreplacementoflegacyIT
systemswithacargo-specificsystem,
iCargo;achievedourhighestever
customersatisfactionrankingandan
AirCargoExcellenceAward;andjoined
theIATA-sponsoredCargo2000
organisation,anindustryinitiativeto
implementanewqualitymanagement
systemforthesector.
QantasFreightisideallypositioned
totapintoeconomicgrowthinthe
Asia-Pacificregion.Around50percent
ofourrevenueisnowderivedfromfreight
ThewebsiteremainsQantasprimary
bookingchannelandAustraliasnumber
onetravelsite.Itwasredesignedduring
2009/2010forbetterfunctionalityanda
moreattractivelook.
In2009/2010qantas.comintroduced
aPricePromiseonhotels,carhire,
activitiesandtransfers,providing
customerswithguaranteedlowratesfor
theseproducts.Interlinesellingcontinued
toexpand,socustomerscannowsearch
andbookflightsto65destinationsin
Australiaandover190destinations
aroundtheworldwithQantas,Jetstar,
oneworldallianceairlinesandmorethan
35othercarriers.
Othernewfeaturesinclude:
Exitrowseatpurchase
Additionalbaggageallowancepurchase
Advancedseatselection
Combinedbookingsforflights,
carhireandtravelinsurance
Mobilefunctionalityhasalsobeen
expandedandtheoptionsavailableto
QantasFrequentFlyermembersincreased.
trafficfromAsia,withmuchofthis
passingthroughShanghai,ourprimary
hubintheregion.
Ourtrans-Tasmanservicesareoperated
byacombinationofscheduledQantas
andJetstarpassengerflightsanda
dedicatedfreighter,whiledomesticallyour
twojointventurecompaniesAustralian
airExpressandStarTrackExpressoffer
extensiveairandroadfreightoptionsfor
Australianbusinesses.
Wearealsoinvestingstronglyin
infrastructure,includingourterminalsin
Brisbane,Melbourne,Perth,Sydneyand
LosAngeles.Ourstate-of-the-artterminal
facilitiesinMelbourne,redevelopedduring
2009,havesignificantlyimprovedour
storageandhandlingcapability.
In 2009, for the third year in a was row,
qantas.com named Australias
Number One Website in the Aviation
Commercial Airlines and Travel
Transport categories by Hitwise.
Qantas Freight achieved
its highest ever customer
satisfaction rating.
39
AnnuAl Review 2010
Qantas
Aviation
Services
Jetset
Travelworld
Group
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).
Thebusinesslargestoperatingcompany
isQantasDefenceServices(QDS)ranked
Australiasbestlargedefencecontractorin
theDefenceMaterielOrganisations
IndustryScorecardforthepasttwoyears.
QDSworkscloselywiththeRoyal
AustralianAirForce(RAAF)acrossseveral
programsandaircraftfleets,providing
deepmaintenance,logisticssupportand
enginesupport.
JTG,anintegratedtravelbusiness,
provideswholesale,retailandspecialist
businesstravelproductsandservices
acrossAustralia,andincludestheQantas
HolidaysandQantasBusinessTravel
brands.In2009/2010wegaveour
supporttoaproposaltomergeJTG
andStellaTravelServices.
Ifapprovedbyshareholdersand
regulatoryauthorities,themergerwill
createamorecompetitivebusiness,
betterabletostrengthenbrandingand
onlinecontent,identifycostandrevenue
synergiesandinvestinmarket
development.
Our tanker
conversion project
Agroupof170specialistQantas
engineersisconvertingfourA330200stoMultiRoleTankerTransport
(MRTT)aircraftwithair-to-air
refuellingcapability,onbehalfofthe
EuropeanAeronauticsandDefence
SpaceCompany(EADS)fortheRoyal
AustralianAirForce.Thisrefined
engineeringcapabilityisuniqueto
QantasintheAsia-Pacificregion.
Akeyachievementin2009/2010
wassecuringa$136million,three-year
extensiontoourmaintenanceand
supportcontractfortheRAAFsC130H
Herculesfleet.
QDSisalsoperformingA330tanker
conversionsforAirbusMilitaryandhas
beenawardedthecontractforthroughlifesupportofthetankersoncethey
enterservicewiththeRAAF.
41
AnnuAl Review 2010
35,700 people
250 unique roles
55 languages
92 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.
Our approach
Ourgoalistodeliveragreatplaceto
work,providetraininganddevelopment
forourpeople,andharnesstheirpassion
andadvocacyinsupportofourbrands.
Ourworkforceisextraordinarilydiverse,
withrolesrangingfrompilotstocabin
crew,professionalandtechnicalengineers
toaviationinformationanalysts,fuel
hedgingspecialiststometeorologists,and
withareassuchasbaggageandcatering
thatemployAustraliansrightacrossthe
country.
Afocusinrecentyearshasbeen
toincreasethenumberofIndigenous
Australiansinourworkforce.ByJune2010
wehad300Indigenousemployeeswithin
theQantasGroup.
Qantasistheleadingaviationtrainer
inAustraliaandamongthemost
respectedintheworld.Weprovide
extensivein-housetrainingandwork
closelywithleadingeducationand
traininginstitutions:
Our2,282Qantasmainlinepilots
domorethan33,000hoursofannual
traininginourstate-of-the-artaircraft
simulators
Wehave385QantasandQantasLink
engineeringapprentices
Approximately19,000employees
haveundertakenoureXceptional
servicetraininginourpurpose-built
CentreofServiceExcellencesince
December2008
TheQantasGraduateprogramhas
takenin102recruitsoverthepast
threeyearsandtheirtrainingwill
providethenextgenerationof
aviationexecutives
TheQantasGrouphasdevelopeda
PeopleStrategicPlanthatalignstobroad
Groupstrategyandisfocusedon:
Buildingastrongculturethatengages
ouremployeesandisconduciveto
lastingchange
Developingleadershipcapabilityacross
alllevelsoftheorganisation
Supportingourdiverseandageing
workforce
Strengtheningengagementwithour
peopleremainsafocus.Akeyinitiative
hasbeentobringtogetherregularly
100ofthemostseniorleadersfrom
acrosstheGrouptoensurealignment
ofstrategyandpurpose.Overthepast
12months,thisapproachhasbeen
broadenedwiththestagingofsimilar
forumsinvolving500influentialleaders
fromacrosstheGroup.
Developingleadershipcapabilityatall
levelsdemandsanupdatedapproachto
managingperformance.Weareinvesting
inthedevelopmentofleadership,
feedbackandcoachingskillsforallour
managers.Theaimistogiveallleaders,
managersandfront-linesupervisorsa
commonapproachtomanagingpeople
atQantasandtobringoutthebestin
everyone.
the qAntAs GRoup
42
With an ageing workforce, and intense competition for talent,
it is important to provide safe, healthy workplaces and to
encourage healthy living.
ABoardCommitteetheSafety,Health,
EnvironmentandSecurityCommittee
overseesGroup-widehealthpolicies,
reflectingtheirimportancetoour
customersandpeople.
For employees at Qantas, key benefits
and well-being initiatives include:
12weekspaidmaternityleave
(includingadoption)andupto
twoyearsunpaidparentalleave
fortheprimarycare-giver,consistent
withAustralianbestpractice
Oneweekspaidpaternityleave
(includingadoption)
Upto15dayspaidpersonal/carers
leaveperyear
Accesstoaffordable,highquality,
award-winningemployer-sponsored
childcarecentresinMelbourne,
SydneyandBrisbane
Salarysacrificeprograms(suchas
superannuationandmotorvehicles)
AHealthandWellbeingProgramthat
includesWeightWatchersatWork
andon-sitegroupexerciseclasses.
Over1,300employeesparticipated
intheGlobalCorporateChallenge
walkingeventin2010
OurEmployeeAssistanceProgram,
aself-referralcounsellingprogram
Opportunitiesforreducedairfares
Afullysubsidisedfluvaccination
programforouremployees
Alcoholandotherdrugsprograms
includingrandomtestingand
referralservices
Fatiguemanagementmeasures
whichincludecomprehensive
policies,practicesandprocedures
Women in the Qantas Group
Womencomprise41.7percent
ofourtotalworkforce(upfrom
40.4percentin2005)
22.6percentofwomenemployees
occupyseniorroles
Retentionrateforwomenreturning
frommaternityleavewas97percent
and100percentforfemalepilots
Womenrepresented75percent
ofthetotal2010Graduateintake
(comparedto43percentin2009)
43
AnnuAl Review 2010
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.
WehaveactivatedtheSATforcrisis
eventsincludingtheBalibombingsin
October2002andOctober2005,the
BoxingDay2004Asiantsunami,Cyclone
LarryinApril2005,andinsituations
whereturbulencehascausedinjuries
tocustomersoremployees.SATmembers
mayberequiredtoarrangemedicalcare
andcounselling,repatriationand
escorting,andhotelandhospitalvisits.
Volunteerscomefromeverylevel
oftheorganisation,includingsenior
management,andabroadrangeof
culturalandreligiousbackgrounds.Often
workingundergreatpressure,withtight
timeconstraints,andoutoftheirnormal
workingenvironment,thesevolunteers
arethekeypointofcontactbetweenthe
QantasGroupandpeopleaffectedbya
crisis,includingourcustomers,crew,
peopleontheground,andfamilies.
Membersundergotwodaysofinitial
training,withcoursecontentresearched
fromotherairlinesandindustrystandards.
Thisissupplementedannuallywith
refreshertraining.
TheSATwasactivatedin2009/2010
duringthevolcanicashincident.James
Kassimatiswasoneofthosedeployedto
Bangkoktoassistaverysmallteamcare
forseveralhundredstrandedcustomers.
Tosaytheexperiencewasamazing
wouldbeanunderstatement,says
James.AsaSpecialAssistanceTeam
memberinadeployment,youarethe
faceofQantas.Fromacustomers
perspective,youareQantas...Families,
thesick,theelderly,thelonely,theangry,
theyou-name-it,allcometogetherand
bytheendoftheadventureyouknow
themallbyfirstnameandtheirstory.
Ihaveneverbeforereceivedastanding
ovation,consoledcryingstrangersand
beenhuggedandkissedbycustomers...
ForJamesandotherSATmembers,
deploymentduringacrisissituation
meanslongworkinghoursandstressful
conditions.
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.
JA m es k A s sim At is
45
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
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.
TheQantasGroupretainssubstantial
flexibilityinitsfleetorderbookbyhaving
amixofownedaircraftandleases,and
aprogressiveorderstreamthatenables
bothdeferralsandadvancements.
At30June2010,theQantasGroup,
includingJetstarAsia,operatedafleetof
250passengeraircraftplusfourdedicated
freighteraircraftwithacombinedaverage
ageoflessthan10years.TheGroup
wet-leasedthreeBoeing747-400sand
oneB767-200freighteraircraft.
Morethan150newaircraftareplanned
fordeliveryoverthecomingeightyears.
Thisrepresentsmorethanonenewaircraft
permonthandwillenabletheretirement
ofupto65olderaircraftwithsome
aircrafttypes(B767-300andB737-400)
tobeprogressivelyphasedout.
TheAirbusA380andtheB787
DreamlinerarecentraltotheQantasGroups
wide-bodyfleetstrategy.Qantaswasthe
firstairlinetosignonfortheA380andisthe
secondlargestairlinecustomerfortheB787.
TheA380isreplacingB747sonthe
maturedenseroutesofLondonand
LosAngeles,andthefleetwillgrow
to20overthenextfiveyears.
TheB787willbeidealforpoint-to-point
flyingonmediumdensityroutes,both
short-haulandlong-haul;facilitating
JetstarsgrowthintoEuropeandinAsia;
operatingQantasservicesintoAsia;
potentiallyoperatinghightrafficrouteson
theQantasdomesticnetwork;andproviding
fortheretirementofQantasB767fleet.
Thefirmaircraftorderdeliverystream
standsat50withthefirstB787dueto
arriveinmid-2012.Thefirst15B787s
willbeusedbyJetstarforitsinternational
operations,allowingJetstarA330sto
betransferredtoQantasforuseon
high-densitydomesticroutes.
ThecornerstoneofQantasLinks
fleetrenewalisthe72-seatturboprop
BombardierQ400,withQantasLink
nowoperating21Q400s.
Qantas Group Aircraft
on 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
TOTAL
7
158
the qAntAs GRoup
46
Next generation
flying B787
The B787 will deliver considerable
environmental and economic benefits.
Itwillbeabletoflyalongerrange
comparedtoA330s,andthereforemore
point-to-pointservices,withouttheneed
tooperateviahubs,akeyadvantagefor
QantasandJetstarasendoftheline
carriers.
Itwillalsoofferanimprovedcustomer
experienceincludinglargerwindows,
higherhumidityandalowercabinaltitude
pressure.
TheB787-8canseatapproximately
300passengers,whiletheB787-9seats
approximately350passengers.
Followingthelaunchoftheprogram
in2004,thefirstsuccessfultestflightfor
theB787-8occurredinDecember2009
(withRollsRoyceengines),markingthe
beginningofatestflightprogramthat
willseesixB787aircraftflyingaround
theclockandaroundtheworld.Thefifth
testaircraft,fittedwithGeneralElectric
engines(theenginetypeorderedby
QantasandJetstar),haditsfirstsuccessful
testflightinJune2010.CertificationFlight
TestingandFederalAviationAdministration
approvaloftheB787typedesignis
expectedtooccurinNovember2010
withthefirstdeliveriestocustomers
tooccurbyearly2011,andtheQantas
Groupreceivingthefirstofour50B787s
inmid-2012.
the qAntAs GRoup
48
Engineering
Engineering makes a major contribution to the Qantas
reputation for safety, reliability and performance.
Withcloseto6,000peopleemployed
and385apprentices,engineeringin
Qantasisacomplexbusiness,requiring
veryhighlevelsofskillandtraining,
scrupulousqualityassurancestandards,
excellenceinsupplychainprocesses,
projectdeliveryskills,andpeople
management.Sophisticatedengineering
facilitiesinAvalon,Brisbane,Melbourne,
Adelaide,LosAngeles,Tamworthand
Sydneycarryoutaircraftmaintenance,
modifications,refurbishment,andengine
andcomponentrepairandoverhaul.
In2010QantasLinkcommencedheavy
maintenanceonitsfleetof21Bombardier
Q400turbopropaircraftattheupgraded
Tamworthmaintenancefacility.Additionally,
majorlinestationsconductaircraft
turnaroundandminormaintenance
incentresincludingCairns,Darwin,
CanberraandPerth.
Morethan80percentofallQantas
aircraftmaintenanceiscarriedout
inAustralia.Inearly2010Qantas
commencedheavymaintenanceon
itsA330fleetofaircraftinBrisbane,
securinghundredsofjobsacrossarange
ofengineeringandmaintenanceroles.
People: 5,877
Sites: Seven (Avalon, Brisbane,
Melbourne, Adelaide, Los Angeles,
Tamworth, Sydney)
Facilities: 282,000m2
49
AnnuAl Review 2010
Catering
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-leadingdomestic
andinternationalflightcateringservice,
thebiggestofitskindinthesouthern
hemisphereandthefirsttohaveeach
ofitssevenproductioncentresaccredited
tointernationalfoodsafetymanagement
standards.
WorkingwithQantasconsultingchef
NeilPerry,QCateringdeliversdelicious
inflightcuisinetopremiumQantas
customersandmealstootherairlines.
SnapFreshisastate-of-the-art
mealproductionfacilityforairlineand
non-airlinecustomers,includingthe
healthcareanddefencesectors.
People: 2,800
Sites: Six (Adelaide, Brisbane,
Cairns, Melbourne, Perth, Sydney)
Meals: 35 million
Facilities: 75,000m2
the qAntAs GRoup
50
Airports
Superior airport infrastructure and continuing investment in high
quality terminals and lounges support our goal of a seamless and
enjoyable journey for customers.
Airportinvestmentiscrucialtosupport
theintroductionoftheA380andplanned
introductionoftheB787,theexpansion
oftheA330andB737-800fleetson
domesticroutesandforecastgrowthin
passengers.ThisyearQantasfinalisedits
$75millionPerthterminalredevelopment,
includinglounges,andalsocompletedits
seamlesstransferfacilitybetweenSydney
internationalanddomesticterminals.
FromSydneytoKarratha,from
LauncestontoTownsville,nootherairline
intheworldoffersthelevelofmulti-tiered
loungefacilitiesprovidedbyQantasfor
ourdomesticcustomers.Wehave14
stylishQantasinternationallounges,with
ourMarcNewsonFirstLoungeswinning
internationalawardsandcustomer
acclaim,plusafurthereightlounges
sharedwithinternationalairlinepartners.
Investmentinourglobalanddomestic
loungenetworkcontinueswithmore
than$40millionincurrentandprojected
expenditure.
Majordomesticprojectscompleted
overthecourseoftheyearincludenew
regionalloungesinKalgoorlieandCoffs
Harbour,theCairnsQantasClub,the
ChairmansLoungeandQantasClubin
PerthandloungeupdatesintheSydney
T2andHobartQantasClubs.Major
projectsunderwayincludeour$18million
CanberraterminalwithanewMarc
NewsonChairmansLounge,Business
LoungeandQantasClub,newEmerald
andLauncestonregionallounges,andan
updatetotheDevonportregionallounge.
Domestic
Lounge Type
Internationally,thisyearwecompleted
anewHongKongBusinessLoungeand
updatedtheHongKongFirstLoungeand
theHonoluluBusinessLounge.Work
underwayincludesarefreshofthe
SingaporeFirstLounge,andupdatesof
theWellingtonandSydneyBusiness
Lounges.OurfutureplansincludeMarc
NewsonFirstLoungesinLosAngeles,
SingaporeandHongKongwhichwill
consolidateoursuperiorFirstoffering.
International
No.
Locations
Lounge Type
No.
Locations
Chairmans
6
Adelaide,Brisbane,Canberra,
Perth,Melbourne,Sydney
InAustralia
First
3
Sydney,Melbourne,
Brisbane
Business
4
Brisbane,Canberra,
Melbourne,Sydney
InAustralia
Business
4
Brisbane,Perth,
Melbourne,Sydney
Adelaide,Cairns,Brisbane,
AliceSprings,Canberra,
Darwin,Hobart,Perth,
Melbourne,SydneyT3,
SydneyT2,Townsville
OutsideAustralia
First
2
Auckland,HongKong
OutsideAustralia
Business
5
HongKong,Honolulu,Tokyo,
Wellington,Auckland
Broome,CoffsHarbour,
Devonport,Kalgoorlie,
Karratha,Launceston,
Mackay,PortHedland,
Rockhampton
OutsideAustralia
Jointlounges
(FirstandBusiness)
8
Bangkok(First,Business),Los
Angeles,TomBradleyterminal
(First,Business),LosAngeles,
T4terminal(First,Business),
Singapore(First,Business)
QantasClub
Regional
12
9
51
AnnuAl Review 2010
53
AnnuAl Review 2010
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.
Excellenceincustomercareembraces
everyaspectofthecustomerexperience
frombookingtoboarding,frominflight
tobaggagecollection.
Sowearelisteningtoourcustomers
morecarefullythanever;engagingour
peopleandequippingthemtodeliver
consistentlyexcellentservice;and
investingingreatfleet,loungesand
product.
Qantashastraditionallyuseddetailedand
regularcustomersatisfactionsurveysto
measureourperformanceincustomercare:
AtMay2010weequalledourhighest
evermonthlycustomersatisfactionrating
Overthepast12monthsinternational
customersreportedthattheywere
significantlymoresatisfiedwiththe
groundexperience,particularlycheckin,boarding,loungesandpunctuality
TheAirbusA380cabinenvironment
anditsseatscontinuedtoattract
strongcustomersatisfactionresults
acrossallcabins,particularlyinFirst
Class.OurSydneyandMelbourne
FirstLoungescontinuedtorateat
95percent-pluslevels
Amongdomesticbusinesstravellers
overallsatisfactiontrendedupwards
overthe12months,drivenstrongly
byon-timeperformancewhichwasthe
bestforadomesticAustralianairline
NowQantasismovingtoaddamore
ambitiousmeasureofcustomer
satisfaction,theNetPromoterScore.Our
goalovertimeistoconvertmoreofour
satisfiedcustomersintoactivepromoters
ofQantasandtherebystrengthenour
shareoftheirbusiness,aswellasattract
andkeepnewcustomers.Weknowfrom
ourresearchthatserviceisthebiggest
driverofthiskindofadvocacy.
Ourcustomerssafetyandwell-being,
bothpre-flightandinflight,are
veryimportanttous.Weresearch
andreviewenvironmentalconditions
onboardtoensuremaximum
passengercomfort.
Our long-term strategy involves:
Investinginbreakthroughinitiatives,
suchasNextGenerationCheck-in,
thatwilldeliverthebiggestreturns
intermsofcustomersatisfaction
andadvocacy
HarnessingthepowerofourFrequent
Flyerprogramtobuildenduringand
valuedrelationships
Strengtheningthemorale,engagement
andskillsofourQantaspeople
Greaterinputbyourfront-linestaff
infollowingupthecomplaintsor
complimentsofourcustomers
Weprovide:
AMeetandAssistserviceto
passengerswithspecialneeds
Mobilityassistance,including
servicesforthevisionandhearing
impaired
Provisionforservicedogs
Medicalrepatriation,
accommodatingstretchers,
medicalescortsandspecial
equipmentrequirements
Onlineinformationonmedical
conditionsandapplicable
clearancesthatmayberequired
Inflight health
Qantascrewaretrainedtoprovide
medicalassistanceandbothQantas
andJetstaraircrafthavesatellitelinks
tophysiciansshouldspecialistadvice
beneeded.
the qAntAs GRoup
54
Next Generation
Check-in
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 thats what we are delivering
with Next Generation Check-in.
Advance Seat Selection
Online Check-in
Mobile Check-in
Who:ChairmansLoungemembers,Platinum,
GoldandSilverFrequentFlyers.
What:Keyautomationplatformproviding
customerswithcontrolovertheirseatingprior
toarrivalattheairport.
How:Customerschoose/changetheirseats
viaManageYourBookingonqantas.com
uptothreehourspriortodeparture.
Who:Allcustomers.
What:Availablebetween24hoursand
onehourpriortodeparture,self-service
check-infordomesticflightsavailablevia
ManageYourBookingonqantas.com
How:Customerswithinternetaccesscan
checkinfromhomeortheoffice,selectand
changetheirseatsandprinta2Dbarcode
boardingpassforuseattheboardinggate.
Who:Allcustomerswithaweb-enabled
mobiledevice.
What:Customerscancheckinfora
domesticflightonqantas.comwith
theirdevicebetween24hoursand
45minutespriortodeparture.
How:Customersfollowafewsimplesteps
tocompletecheck-in,witha2Dbarcode
senttotheirdevice.Thebarcodeisscanned
atthegatewhereaboardingreceipt
isprintedwithkeycustomerandflight
informationforuseonboard.
55
AnnuAl Review 2010
Automatic Check-in
Kiosks
Kiosk Service Point
Who:ChairmansLoungemembers,Platinum,
GoldandSilverFrequentFlyersandQantas
Clubmembers.
What:AnewQantasFrequentFlyerCard
withsmartchip(RFID)technologyanda
simplereaderdesignthatsupportsafast
transaction,enablingpremiumcustomersto
beautomaticallycheckedin.ThenewFrequent
FlyerCardisthenusedattheboardinggate
withcustomersreceivingaboardingreceipt.
How:CustomerstouchtheirnewFrequent
FlyerCardonQCardReaderslocated
throughouttheterminaltobeautomatically
checkedin.AvisualindicationontheReader
andasoundconfirmcheck-in.AnSMS
confirmationofcheck-in/flightdetailsfollows.
Changestobookingsoradditionalprocessing
mustbeactionedatkiosksorServiceDesks.
Who:PrimarilyforBronzeandnonFrequent
Flyers,butavailabletoallcustomers.
What:Functionalityenablingcustomersto
check-in,selectseats,printbaggagetags,
completeexcessbaggagepaymentsbycredit
cardorcarryoutchangesandupdates.The
kioskswillbelocatedinclusterformation
anchoredbyaKioskServicePoint.Scalesare
availabletoencouragecustomerstovalidate
bagweightpriortocheckingin.
How:Enhancedfunctionalityandinteractive
screensstepcustomersthroughthecheck-in
andbaggageprocesses.FastPathfunctionality
providesshortcutsforkeyprocessespost
check-insuchasseatchangesandadding
FrequentFlyerdetails.CustomerService
Agentsprovideassistance.
Who:Customersrequiringassistancewith
simpleissues.
What: Fullagentworkstationconveniently
locatedincloseproximitytokiosks.
How:CustomerServiceAgentscanaccess
phoneandcomputerfunctionstoresolve
simpletransactionerrorsforcustomers.
the qAntAs GRoup
56
Next Generation
Check-in
Ourpioneeringspirithasalwaysbeen
partofwhoweareandwherewecome
from.Ithashelpedourairlinetoconstantly
setnewbenchmarksforotherstofollow.
ThelaunchofdomesticNextGeneration
Check-inispartofaneweraofinnovation.
Itsanambitiousproject,involvingworldfirsttechnology.
Itwillre-engineerhowourproductsand
servicesaredeliveredtoourcustomers.
Anditwillchangethecustomer
experience,enablingouremployees
tofocuslessonprocessandmoreon
customercare.
Bag Drop
Q Bag Tag
Premium Service Desk
Who:Allcustomerstravellingwithbags.
What:AnautomatedBagDropsupportedby
CustomerServiceAgents.
How:Oncecheckedin,customersplacetheir
taggedbagsontheinjectorsandfollowa
setofsimplestepsprovidedontheinjector
screens.Asimplereconciliationprocess
matchesboardingpassandbagtagdatato
thebookingandensuressecureacceptance
ofbagsintothebaggagehandlingsystem.
Theinjectorsrecognisebagsizeandweight
todetermineiftheyarewithincustomer
entitlements.
Who:ChairmansLoungemembers,Platinum,
GoldandSilverFrequentFlyers.IntimeBronze
FrequentFlyerswillbeabletopurchasetags.
What:Aphysicalelectronicbagtaglinkedto
theQantasFrequentFlyerCardandusedto
checkinbaggage.Keycustomerandflight
informationisrecordedonthetagssmartchip
enablingsecurereconciliation.
How:QBagTagsareattachedtochecked
baggage,enablingcustomerstogodirectly
toaBagDropwithoutneedingtoaccessa
kiosktoprintandtagbags.
Who:ChairmansLoungemembers,Platinum,
GoldandSilverFrequentFlyers,QantasClub
membersandcustomerstravellinginBusiness.
What:Adedicatedface-to-facefullservice
option.Functionsincludecheck-in,changesto
itinerary,problemresolutionanddomesticto
internationalcheck-in.
How:Premiumcustomerspreferringto
check-inordroptheirbagsataServiceDesk
orspeakwithaCustomerServiceAgentwill
continuetohaveaccesstothisservice.
57
AnnuAl Review 2010
Service Desk
Premium security
Enhanced boarding
Who:BronzeFrequentFlyersandallother
nonFrequentFlyers.
What:Aresolutionservicepointforcustomer
issuesthatcannotberesolvedatakioskor
KioskServicePoint,andforcustomerswho
requireassistancefromtheBagDropand
oversizedbaggageareas.
How:Customersaredirectedtothe
ServiceDeskforfurtherassistanceincluding
facilitatingpassportandvisachecksfor
domestictointernationalcheck-in.
Who:ChairmansLoungemembers,Platinum
andGoldFrequentFlyersandcustomers
travellinginBusiness.
What:Customershaveaccesstoapriority
screeninglane,locatedinproximitytolounge
entryidentifiedbysignageandsupportedby
aCustomerServiceAgent.
Who:Allcustomers.
What:Seamlessboardingprocessregardless
oftheboardingpasstypepresented
chip-enabledFrequentFlyerCard,mobile
orpaperboardingpass(online,kioskor
ServiceDesk).
Who: ChairmansLoungemembers,
PlatinumFrequentFlyersandcustomers
travellinginBusiness.
What:Priorityaccessatanytimeduring
theboardingprocess.
59
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.
Focus on fuel
Fuel conservation
Fuelconservationiskeytoouroverall
environmentalstrategy.Ninety-fiveper
centoftheQantasGroupsgreenhouse
gasemissionsareattributabletofueluse,
oneofourlargestcostdrivers.Usingfuel
moreefficientlymeanswecanbetter
managethesecosts,absorbfluctuationsin
oilpricesandreduceourcarbonfootprint.
Fleetrenewalisthefoundationfor
ourfuelconservationprogram.Weare
investingUS$22billioninhighly
fuel-efficientnextgenerationaircraft
(atlistprices),suchastheAirbusA380
andBoeing787.TheQantasGroup
hassixA380sinservice,withafurther
14tocome,and50B787sonorder.
Thisinvestmentinourfleetis
complementedbyarangeoffuel
conservationactivitiesintheairand
ontheground,suchasaircraftweight
reduction,betterschedulingand
punctuality,enhancedflightplanning
andnavigation,reducedrelianceon
AuxiliaryPowerUnits,newtechnologies
andimprovedtechnicalperformance.
Inearly2010wereachedakey
milestone:savingonemilliontonnes
ofcarbondioxideequivalent(CO2-e)
throughfuelconservationactivities
since2005.
Overthelongerterm,weare
committedtoastringentfuelefficiency
targetofanaverageof1.5percent
improvementperannumby2020,inline
withtheglobalindustrygoalsestablished
bytheInternationalAirTransport
Association(IATA).
Sustainable aviation fuel
TheQantasGroupiscommittedto
supportingresearchinto,andthe
developmentof,sustainablealternatives
totraditionalaviationfuels.
During2009/2010theQantasGroup
tooktwoimportantsteps:
JoinedtheSustainableAviationFuel
UsersGroup(SAFUG),aglobalgroup
ofleadingairlinesandaviation
companiesworkingtogetherwith
scientificagenciesandenvironmental
organisationstodevelopcleaner
jetfuels
LaunchedaRoadmapstudyin
conjunctionwiththeAustralianand
NewZealandgroupofSAFUGandthe
CommonwealthScientificandIndustrial
ResearchOrganisation(CSIRO)to
identifyandsuggesthowtoaddress
barrierstoacommerciallysustainable
aviationfuelsindustry
the qAntAs GRoup
60
Positive
environmental
action
During 2009/2010 we launched Australias first domestic
inflight recycling program and commissioned the installation
of a tri-generation energy facility in Sydney that could reduce
our electricity use significantly.
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
Carbon readiness
Carboncomplianceregimesareinplace
orplannedinanumberofkeymarkets
wheretheQantasGroupoperates.The
NewZealandEmissionsTradingScheme
(ETS)commencedon1July2010and
appliestoJetstarsdomesticoperations.
ThisisthefirstmandatoryETStoinclude
aviation.TheEuropeanUnionETSwillalso
includeaviationfromJanuary2012.To
date,wehavemetallourobligationsin
thesejurisdictions.
InOctober2009wesubmittedourfirst
mandatorycarbonfootprintreportunder
theAustralianGovernmentsNational
GreenhouseandEnergyReporting(NGER)
Act,reporting4.2milliontonnesofCO2-e
foractivitiesandentitiesundertheQantas
Groupsoperationalcontrolfor2008/2009.
TheQantasGroupwillcontinueto
embedthecostofcarbonintoreporting
systemsandlong-termbusinessplanning.
Carbon offsetting
QantasandJetstarsvoluntarycarbon
offsetprogramwasestablishedtoenable
customerstooffsettheirportionofthe
emissionsgeneratedbytheirflights,and
fortheQantasGrouptooffsetstaffduty
travelandgroundvehicleuse.
Passengersoffset240,000tonnes
ofcarbonduring2009/2010
Between7.5and9percentofcustomers
bookingthroughtheQantasandJetstar
websiteschoosetooffset
66,436tonnesofcarbonforduty
travelandgroundvehicleusewere
offsetin2009/2010
Morethan772,000tonnesofcarbon
havebeenoffsetsince2007
WiththeAustralianGovernments
GreenhouseFriendlyschemecomingto
anendinJune2010,theQantasGroup
hasmovedtocomplyfullywiththe
replacementscheme,theNational
CarbonOffsetStandard(NCOS).
61
AnnuAl Review 2010
Engaging our people and
working with communities
Qantasinternalenvironmentprogram,
begreen,encouragesemployeesto
championsustainableworkpractices
byjoiningthestaffGreenTeamnetwork
(whichincludesemployeesatalllevels
andinallareasofthebusiness).OureXcel
awardsprogramrecognisessustainability
leadershipatwork,whileemployees
contributetoanumberofcommunity
environmentalinitiatives.
Wealsosupportimportantenvironmental
organisationsandprojectsthroughthe
QantasFoundation,theQantasAward
forExcellenceinSustainableTourismand
otherforums.
OurworkinpartnershipwiththeGreat
BarrierReefFoundation(GBRF)isagood
exampleofthiscommitmentinaction.
TheQantasFoundationisapatronof
GBRFsZooXFund,whichprovidesa
channelforindividualsandbusinesses
tosupporthigh-priorityresearchprojects
identifiedbyitsInternationalScientific
AdvisoryCommittee.ZooXisfocusedon
projectsthatwillincreaseGBRFs
knowledgeabouttheimpactsofclimate
changeontheReefandinformstrategies
foritspreservationandprotection.
QantasalsoparticipatesintheZooX
Ambassadorsprogramwhereemployees
takepartinaneducationalprogramand
fieldtriptotheReef,andusethe
knowledgetheygaintoimplement
environmentalimprovementinitiatives
intheirworkplace.
InJune2010Qantasannouncedits
supportforanimportantclimatechange
researchproject,inassociationwiththe
GBRFandtheCSIRO.SealsfortheReef
involvessafelyattachingsensorsto
elephantsealsintheSouthernOcean
totrackchangingwaterconditions.The
informationgatheredwillbeanalysedby
researchersfromCSIROandtheUniversity
ofTasmania,providingbothaninvaluable
guidetothesealsbehaviourandavital
earlywarningsystemforthepotential
impactsofincreasedwatertemperature
andsalinityontheGreatBarrierReef.
63
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.
Qantas Foundation
TheQantasFoundation,established
asacharitabletrustin2008,isfocused
onmakingadifferencetocommunities
atagrassrootslevelthroughcharitable
donationsandassistanceinkind.Itworks
intheareasofhealth,communityand
education,theenvironment,artsand
humanitarianrelief.
GrantsaremanagedbytheQantas
FoundationTrusteeBoardanddistributed
throughfourfunds:
ArtEncouragementFund
EnvironmentalSustainabilityFund
HumanitarianFund
GeneralFundforothercharitable
purposes
Significantinitiativesundertakenby
theFoundationinclude:
Donating$100,000worthofairfares
toenabletheRoyalFlyingDoctorService
(RFDS)togeneratefundraisingrevenue
forthepurchaseofvitalmedical
equipmentandsupportkeyRFDS
initiatives,aswellastransportRFDS
staffanddonors.Qantasstaffalso
showedtheirsupportfortheRFDSby
volunteeringatthe2010RFDSSouth
EastSectionOpenDayinMay2010
FormingapartnershipwithMission
Australiaanditssocialenterprise
restaurant,CharcoalLane,which
providestraining,lifeskillsand
pathwaysintothehospitalityindustry
fordisadvantagedyoungpeople.
TheFoundationhassponsoredsix
studentswithadonationof$57,000
Launchingaspecialcampaign
encouragingQantasstafftodonate
totheFoundationinsupportof
TheFredHollowsFoundations
workwithAustraliansinremote
Indigenouscommunitiesliving
withcataractblindness,trachoma
andothertreatableeyeconditions.
Withamatchingdonationfromthe
QantasGroup,theFoundationdonated
atotalof$50,000
TogetherwiththeAustralianRugby
Union(ARU)andFootballFederation
Australia(FFA),donating$50,000
tosupportUNICEFsreliefefforts
followingthenaturaldisastersin
Samoa,TongaandIndonesiain
late2009
AmongtheothergroupstheFoundation
supportedduring2009/2010werethe
AustralianBusinessandCommunity
Network,theCentreforSocialImpact,
theCentreforSustainabilityLeadership,
CleanUpAustraliaDay(asOfficial
FoundationPartner),FloraandFauna
InternationalAustralia,theGreatBarrier
ReefFoundationandLandcareAustralia.
TheQantasFoundationcomplements
Qantasbroadersponsorshipand
partnershipwork,whichincludessupport
fortheAustralianoftheYearAwards,
CAREAustralia,theInternationalDay
ofPeoplewithaDisability,theNational
AustraliaDayCouncil,theNationalBreast
CancerFoundation,RedDustRoleModels,
theRoyalInstituteforDeafandBlind
ChildrenandUNICEF.In2009/2010Qantas
raisedover$1.8millionforUNICEFs
ChangeforGoodprogram.
the qAntAs GRoup
64
Qantas in the
Australian community
sharing the spirit
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 Australias bid
for the 2022 World Cup.
Wealsocontinuedourcloserelationship
withtheAustralianFootballLeague(AFL),
asofficialairlineandMajorPartnerofthe
LeaguesIndigenousprograms,andthe
ARU,asnamingsponsoroftheQantas
Wallabies.DuringtheAFLsofficial
IndigenousRound,wemadea
$50donationtotheLongWalkTrust
foreverygoalkicked.
Inthearts,wearecommittedtohelping
identifyandnurtureyoungAustralian
talent.TheQantasFoundation
EncouragementofContemporaryArt
Awardrecognisesartistsineachstate
andterritorytheonlysuchaward
todosobasedonabodyofwork,
ratherthanasinglepiece.Wesponsor
organisations,venuesandeventsdedicated
toshowcasingthebestofinternational
andAustralianculture,fromdanceand
theatretoIndigenousart.
AsaGoldSponsoroftheAustralian
PavilionattheShanghaiWorldExpo,
wewereactiveinpromotingAustralian
cultureandbusinessinoneofAustralias
mostimportantmarketsfortrade,
investmentandtourism.
QantasLink giving back
to regional Australia
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,QantasLinksNSW
maintenancebase,weemploy
82people,sponsortheCountryMusic
AssociationofAustraliaandspenta
totalof$5.4millionin2009/2010
InMildura,weemploy28people,
sponsorthelocalChamberof
Commercebusinessawardsandthe
MilduraWritersFestival,andspent
$1.5millionin2009/2010
InGladstone,weemploy12ground
handlingstaff,sponsortheGladstone
HarbourFestivalandcontributed
expenditureof$4.2millionin
2009/2010
Wearekeenlyawareofaviations
significancetothesecommunitiesand
others,andoftheimportanceofgiving
backtothefamiliesandbusinesses
thatsupportusacrossthecountry.
65
AnnuAl Review 2010
Qantas and
reconciliation
TheQantasReconciliationActionPlan
(RAP)aimstobuildrelationshipsfor
changebetweenAboriginalandTorres
StraitIslander(Indigenous)Australians
andotherAustralians.
Weareproudtohavebeenrecognised
asacorporateleaderinreconciliation,
beingnamedBestEstablishedBusiness
intheQueenslandGovernments2009
ReconciliationAwardsforBusiness.
Ourworkinsupportingreconciliation
initiativeswithinourcompanyandwith
ourcustomersandthecommunity
includes:
FoundingmembershipoftheAustralian
IndigenousMinoritySupplierCouncil
andengagingIndigenousbusinesses
toprovideservicestoQantas
Providingemploymentandeducational
opportunitiesforIndigenousAustralians
includingscholarships,school-based
traineeshipsanduniversitycadetships
Developingpartnershipswhichaimto
supportIndigenousexcellenceinsport,
artandculturethroughourworkwith
BangarraDanceTheatre,theAFL,the
GondwanaNationalIndigenous
ChildrensChoirandtheNational
GalleryofVictoriasIndigenousGalleries
PromotingsharedprideinIndigenous
culturebyscreeningIndigenous
documentariesandfilmsonourinflight
entertainmentandincludingarticlesin
theinflightmagazineandotherQantas
publications
FilmingofWelcometoCountry
withlocalIndigenouseldersinSydney,
DarwinandCairnsfortheQantas
internationalinflightarrivalvideo
guides,withothercitiestofollow
Providinginformationfortravellers
(qantas.com/reconciliation)about
travellingrespectfullyinIndigenous
Australiaandinmakinginformed
andethicalchoiceswhenpurchasing
Indigenousartandartefacts
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
the qAntAs GRoup
66
Board of Directors
Leigh Clifford, AO
Alan Joyce
BEng, MEngSci
Chairman
Independent Non-Executive Director
BApplSc(Phy)(Math)(Hon.),
MSc(MgtSc), FRAeS
Chief Executive Officer
LeighCliffordwasappointedtotheQantasBoardin
August2007andasChairmaninNovember2007.
HeisChairmanoftheQantasNominations
Committee.MrCliffordisaDirectorofBarclaysBank
plcandBechtelGroupInc.HeisChairmanofBechtel
AustraliaPtyLtdandtheMurdochChildrensResearch
Institute,aSeniorAdvisortoKohlbergKravisRoberts
&CoandaBoardMemberoftheNationalGalleryof
VictoriaFoundation.MrCliffordwasChiefExecutive
ofRioTintofrom2000to2007.Heretiredfromthe
BoardofRioTintoin2007afterservingasaDirector
ofRioTintoplcandRioTintoLimitedfor13and
12yearsrespectively.Hisexecutiveandboardcareer
withRioTintospannedsome37years,inAustralia
andoverseas.Age:62
AlanJoycewasappointedChiefExecutiveOfficerand
ManagingDirectorofQantasinNovember2008and
CEODesignateandtotheQantasBoardinJuly2008.
HeisaMemberoftheSafety,Health,Environment
andSecurityCommittee.MrJoyceisaDirectorofa
numberofcontrolledandassociatedentitiesofthe
QantasGroup,andaformerDirectorofOrangestar
InvestmentHoldingsPteLimitedandJetstarPacific
AirlinesAviationJointStockCompany.Hewasthe
CEOofJetstarfrom2003to2008.Beforethat,Mr
Joycespentover15yearsinleadershippositionsfor
Qantas,AnsettandAerLingus.AtbothQantasand
Ansett,heledtheNetworkPlanning,Schedules
PlanningandNetworkStrategyfunctions.Priorto
that,MrJoycespenteightyearsatAerLingus,where
heheldrolesinSales,Marketing,IT,Network
Planning,OperationsResearch,RevenueManagement
andFleetPlanning.Age:44
Garry Hounsell
Paul Rayner
BBus(Acc), FCA, CPA, FAICD
Independent Non-Executive Director
BEc, MAdmin, FAICD
Independent Non-Executive Director
GarryHounsellwasappointedtotheQantasBoard
inJanuary2005.HeisChairmanoftheAudit
CommitteeandaMemberoftheNominations
Committee.MrHounsellisChairmanofPanAust
LimitedandaDirectorofOricaLimited,DuluxGroup
LimitedandNufarmLimited.MrHounsellisalso
DeputyChairmanofMitchellCommunicationGroup
Limited.HeisChairmanofInvestecGlobalAircraft
Fund,aDirectorofIngeusLimitedandaBoard
MemberoflawfirmFreehills.MrHounsellisaformer
SeniorPartnerofErnst&YoungandChiefExecutive
OfficerandCountryManagingPartnerofArthur
Andersen.Age:55
PaulRaynerwasappointedtotheQantasBoardin
July2008.HeisaMemberoftheAuditCommittee
andSafety,Health,EnvironmentandSecurity
Committee.MrRaynerisaDirectorofBoralLimited
andCentricaplc.HealsoservesasChairmanof
BoralsandCentricasAuditCommittees.From2002
to2008,MrRaynerwasFinanceDirectorofBritish
AmericanTobaccoplc,basedinLondon.MrRayner
joinedRothmansHoldingsLimitedin1991asits
ChiefFinancialOfficerandheldotherseniorexecutive
positionswithintheGroup,includingChiefOperating
OfficerofBritishAmericanTobaccoAustralasia
Limitedfrom1999to2001.PreviouslyMrRayner
workedfor17yearsinvariousfinanceandproject
roleswithGeneralElectric,RankIndustriesandthe
EldersIXLGroup.Age:56
67
General Peter Cosgrove, AC, MC
Patricia Cross
AnnuAl Review 2010
Richard Goodmanson
FAICD
Independent Non-Executive Director
BSc(Hons), FAICD
Independent Non-Executive Director
BEng(Civil), BCom, BEc, MBA
Independent Non-Executive Director
PeterCosgrovewasappointedtotheQantasBoardin
July2005.HeisaMemberoftheSafety,Health,
EnvironmentandSecurityCommitteeandaDirector
ofQantasSuperannuationLimited.GeneralCosgrove
isaDirectorofCardnoLimited,Chairmanofthe
SouthAustralianDefenceIndustryAdvisoryBoard
andtheAustralianWarMemorialCouncil.General
CosgroveservedintheAustralianArmyfrom1965
includingcommandoftheinternationalforcesinEast
Timorfrom1999untiltheforcewaswithdrawnin
February2000.HewastheChiefoftheAustralian
DefenceForcefromJuly2002untilhisretirementin
July2005.GeneralCosgrovewasAustralianofthe
Yearin2001.Age:63
PatriciaCrosswasappointedtotheQantasBoardin
January2004.SheisaMemberoftheAuditand
RemunerationCommittees.MrsCrossisaDirectorof
NationalAustraliaBankLimited,JBWerePtyLimited,
theMurdochChildrensResearchInstitute,theGrattan
InstituteandtheMethodistLadiesCollege.Sheisa
MemberoftheGovernmentsAustralianFinancial
CentreForumandMelbourneUniversitysAdvisory
CounciltotheFacultyofBusinessandEconomics.
MrsCrosswaspreviouslyadirectorofWesfarmers
Limited,ChairmanofQantasSuperannuationLimited
andDeputyChairmanofVictoriasTransportAccident
Commission.Shehasservedonavarietyofpublicly
listed,government,universityandprivatecompany
boards.Priortobecomingaprofessionalcompany
directorin1996,MrsCrossheldseniorexecutive
positionswithChaseManhattanBank,Banque
NationaledeParisandNationalAustraliaBank.Age:51
RichardGoodmansonwasappointedtotheQantas
BoardinJune2008.HeisaMemberofthe
RemunerationCommitteeandaMemberofthe
Safety,Health,EnvironmentandSecurityCommittee.
MrGoodmansonisaDirectorofRioTintoplcandRio
TintoLimited.From1999to2009hewasExecutive
VicePresidentandChiefOperatingOfficerofE.Idu
PontdeNemoursandCompany.Previoustothisrole,
hewasPresidentandChiefExecutiveOfficerof
AmericaWestAirlines.MrGoodmansonwasalso
previouslySeniorVicePresidentofOperationsfor
Frito-LayInc.andwasaprincipalatMcKinsey&
CompanyInc.Hespent10yearsinheavycivil
engineeringprojectmanagement,principallyinSouth
EastAsia.MrGoodmansonwasborninAustraliaand
isacitizenofbothAustraliaandtheUnitedStates.
Age:63
Dr John Schubert
James Strong, AO
Barbara Ward
BE, PhD, FIEAust, CPEng, FTS, FIChemE
Independent Non-Executive Director
Independent Non-Executive Director
BEc, MPolEc
Independent Non-Executive Director
JohnSchubertwasappointedtotheQantasBoardin
October2000.HeisChairmanoftheSafety,Health,
EnvironmentandSecurityCommitteeandaMember
oftheNominationsCommittee.DrSchubertisa
DirectorofBHPBillitonLimitedandBHPBillitonplc.
HeisalsoChairmanofG2TherapiesLimitedandthe
GreatBarrierReefFoundation.Hewasmostrecently
ChairmanoftheCommonwealthBankofAustralia
andwasalsopreviouslyChairmanofWorleyParsons
LimitedandPresidentoftheBusinessCouncilof
Australia.DrSchubertwasalsoManagingDirector
andChiefExecutiveOfficerofPioneerInternational
Limitedfrom1993until2000.DrSchubertheld
variouspositionswithEssoinAustraliaandoverseas.
In1983,hewasappointedtotheBoardofEsso
Australia.In1985,DrSchubertbecameEssosDeputy
ManagingDirectorandin1988hebecameEssos
ChairmanandManagingDirector.Age:67
JamesStrongwasappointedtotheQantasBoard
inJuly2006.HeisChairmanoftheRemuneration
CommitteeandaMemberoftheNominations
Committee.MrStrongwastheChiefExecutiveOfficer
andManagingDirectorofQantasbetween1993and
2001,followinghisappointmenttotheBoardin
1991.HeisChairmanofWoolworthsLimited,
KathmanduHoldingsLimitedandtheAustraliaCouncil
fortheArts.HeisalsoamemberoftheNomura
AustraliaAdvisoryBoardandaDirectorofthe
AustralianGrandPrixCorporation.MrStrongwas
formerlytheChairmanofInsuranceAustraliaGroup
Limited,aDirectorofIAGFinance(NewZealand)
Limited,theGroupChiefExecutiveoftheDBGroup
inNewZealandandNationalChairmanofPartnersof
CorrsChambersWestgarth.HewasalsoChiefExecutive
OfficerofAustralianAirlinesfrom1985until1989.
Hehasbeenadmittedasabarristerand/orsolicitor
invariousstatejurisdictionsinAustralia.Age:66
BarbaraWardwasappointedtotheQantasBoard
inJune2008.SheisaMemberoftheSafety,Health,
EnvironmentandSecurityCommitteeandtheAudit
Committee.MsWardisChairmanofCountryEnergy,
aDirectorofanumberofBrookfieldMultiplexGroup
companiesandOConnellStreetAssociatesPtyLtd,
andisontheAdvisoryBoardofLEKConsulting.She
wasformerlyaDirectoroftheCommonwealthBank
ofAustralia,LionNathanLimited,BrookfieldMultiplex
Limited,AllcoFinanceGroupLimited,Record
InvestmentsLimited,DataAdvantageLimited,Rail
InfrastructureCorporationandDeltaElectricity.She
wasChairmanofNorthPowerandaBoardMemberof
AllensArthurRobinson.MsWardwasChiefExecutive
OfficerofAnsettWorldwideAviationServicesfrom
1993to1998.Beforethat,MsWardheldvarious
positionsatTNTLimited,includingGeneralManager
Finance,andalsoservedasaSeniorMinisterialAdviser
toTheHonPJKeating.Age:56
the qAntAs GRoup
68
Financial Calendar
2010
18 February
30 June
12 August
29 October
2011
Halfyearresultannouncement
Yearend
Preliminaryfinalresultannouncement
AnnualGeneralMeeting
17 February
7 March
6 April
30 June
24 August
13 September
12 October
28 October
Halfyearresultannouncement
Recorddateforinterimdividend*
Interimdividendpayable*
Yearend
Preliminaryfinalresultannouncement
Recorddateforfinaldividend*
Finaldividendpayable*
AnnualGeneralMeeting
*SubjecttoadividendbeingdeclaredbytheBoard.
2010 ANNUAL GENERAL MEETING
The2010AGMofQantasAirwaysLimitedwillbeheld
at11:00amonFriday29OctoberinAdelaide.
FurtherdetailsareavailableontheCorporateGovernance
sectionoftheQantaswebsite(atwww.qantas.com)
REGISTERED OFFICE
QantasAirwaysLimitedABN16009661901
QantasCentre
Level9BuildingA203CowardStreetMascotNSW2020Australia
Telephone[phone]
Facsimile+61296913339
www.qantas.com
QANTAS SHARE REGISTRY
Level12680GeorgeStreetSydneyNSW2000Australia
orLockedBagA14SydneySouthNSW1235Australia
Freecall1800177747
International+61282807390
Facsimile+61292870303
[e-mail]
STOCK ExCHANGE
AustralianSecuritiesExchange
20BridgeStreetSydneyNSW2000Australia
DEPOSITARY FOR AMERICAN DEPOSITARY RECEIPTS
TheBankofNewYorkMellon
ADRDivision
Level22101BarclayStreetNewYorkNY10286USA
Telephone[phone]
Facsimile+12125713050
CompanySecretaryCassandraHamlin
AnonlineversionofthisAnnualReviewisavailableatwww.qantas.com
P.65photocredit:JasonCapobianco.CourtesyofBangarraDanceTheatre
P.1photocredit:TimBauer.www.timbauerphoto.com
DesignedbyYello.www.yellobrands.com
Cert no. SCS-COC-001360
10. Davis Kwok
q catering Driver
11. Amelia-Jayne Parker
Jetstar international cabin crew
12. Majida Bazzi
q catering wash team
13. Alan Milne
manager maintenance
operations centre
14. Melinda Black
manager financial services
marketing, qantas loyalty
15. Mark Gilmour
second officer b744
16. Paul White
fleet presentation coordinator
17. Justin White
premium customer service Agent
18. Victor So
Aircraft maintenance engineer
line maintenance operations
A380
1. Captain James Boland
senior training captain b737
2. Tameka Lee
snapfresh team member
3. Pete Ashmore
flight Dispatch officer
4. Kylie-Jane Menzies
nsw business Development
manager
5. Leissa Geia
qantas freight customer
support officer
6. Tim Michel
international telephone sales
7. Clint Dale
flight Attendant, qantaslink
8. Karen Lonergan
executive manager,
performance and culture
9. Sheela Rowlands
customer service Agent,
qantas club
3
1
6
2
13
8
10
5
4
7
9
15
16
17
12
11
14
18
19. Kelly Seward
Group sales consultant
20. Captain Mike O'Neill
A380 captain
21. Lauren Dickson
customer service manager
Jetstar international
22. David Fuelling
manager Aircraft trading
23. Jonathan Hards
licensed Aircraft maintenance
engineer line maintenance
operations A380
24. Mariannel Azarcon
senior flight Analyst
25. Kerri Atkins
flight Attendant, international
26. Roger Hedley
Airline services operator
bus Driver
27. Andrew Goh
customer service manager,
international
20
19
21
22
26
23
27
24
25
28. Suzannah Lutterschmidt
Airline service operator
- forklift operator
29. Alice Ackerman
manager Retail Development
and Advertising
30. David Singh
it consultant
31. Captain Yolanne Baker
qantaslink captain
32. Yianni Johns
Aircraft maintenance engineer
33. Wayne Brown
Aircraft painter
34. Sarah Purser
flight Attendant, international
35. Stephen Capron
technical officer
36. Zac Kennedy
Jetstar pilot
28
33
30
35
31
34
29
32
36
qantas Airways limited
Abn 16 009 661 901