The Sum of Us - Qantas...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

TheSumof Us

Annual Review 2010

In 2009/2010 the Qantas Group delivered a strong result and we advanced our plans for a successful and sustainable future. Working together, all parts of our diverse business contributed to our performance. This report is the sum of all our efforts. The sum of us.

1—TheSumofUs12—ForwardThinking14—Chairman’sReport16—CEO’sReport18—FinancialPerformance

20—SafetyFirst24—SustainableOperations28—StrongComplementaryBrands —Qantas —QantasLink —QantasFrequentFlyer —Jetstar —QantasFreight —qantas.com —QantasAviationServices —JetsetTravelworldGroup

40—GreatPeople44—SuperiorInfrastructure —Fleet —Engineering —Catering —Airports52—CaringforCustomers58—EnvironmentalResponsibility62—GivingBack66—BoardofDirectors68—FinancialCalendar

Contents

TheSumof Us

1 AnnuAl review 2010

Forward Thinking

For 90 years Qantas has been a global aviation innovator, driving higher performance in everything from technology and flying records to product and service leadership. In 10 years the Qantas Group will celebrate a century of aviation forward thinking that makes us the world’s most experienced airline.

the qAntAs GRoup 2

Safety First

Safety is our first priority. It underpins everything that we do. Our unwavering commitment is to world’s best safety practices and reporting in all aspects of our business, from operational safety to the physical security and well-being

of our customers and our people.

3 AnnuAl Review 2010

the qAntAs GRoup 4

Strong Complementary Brands

With Qantas and Jetstar we have two strong and complementary brands, and a unique ability to respond to

changing market conditions. We aim to make each airline the best in its class. And we have the flexibility to make flying decisions based on the airline, aircraft and route

that will deliver the best outcomes for our customers and returns to our shareholders.


Sustainable Operations

We’ve been part of Australian life for 90 years, and we’ve made an annual profit every year since privatisation in 1995. Our shareholders, customers, employees and the Australian community look to us for the highest standards of safety, service, citizenship and environmental responsibility and we aim to meet those expectations year after year.

the qAntAs GRoup 6

Superior Infrastructure

Superior infrastructure is fundamental to Qantas Group operations. We have a fleet of 254 aircraft and an ambitious fleet renewal program. Our engineering

and maintenance capabilities ensure safe, reliable performance. We have 14 stylish Qantas international

lounges, while at home we are the only airline to offer multi-tiered domestic lounges.


Great People

The Qantas Group employs 35,700 people across 250 unique roles, with 93 per cent of them based in Australia. Our goal is to deliver a great place to work, provide training and development for our people, and harness their passion in support of our brands.

the qAntAs GRoup 8

Caring for Customers

More than ever we are investing in understanding what our customers want, and delivering more than they

could imagine. Qantas is redefining the modern premium airline brand – and, with our Next Generation Check-in,

streamlining and simplifying the airport experience.


Environmental Responsibility

Responsible environmental behaviour is a strategic imperative. From innovations in fuel conservation and flight planning to onboard recycling, care for the environment is integrated with the Qantas Group’s business strategy. We also strongly encourage positive environmental action in the community.

the qAntAs GRoup 10

Giving Back

At Qantas we consider good corporate citizenship part of our role and responsibility as the national carrier.

In a spirit of partnership, we support Australian culture and sport, charitable organisations, regional

communities and Indigenous advancement, promoting excellence and equal opportunity.


Invented Business Class travel

1979

Qantas employee Jack Grant invented the inflatable aircraft escape slide-raft

1965

World’s longest flight undertaken by a commercial jet aircraft: London-Sydney non-stop with a B747-400

1989

Pioneered flying operations over the Silk Road route, saving 30 minutes’ flying time, after six years’ planning with the Civil Aviation Authority of China and Airservices Australia

2001

First airline to offer round-the-world services via both hemispheres

1958

Founded in Queensland on 16 November

1920

Forward Thinking

Qantas has been pursuing innovation in technology, flight operations and product and service for 90 years. Forward thinking has always been, and always will be, part of our culture. This timeline highlights our major achievements during that period – many of them ‘firsts’ in

2002First airline to introduce Rockwell Collins Multi Scan radar on B747-400ERs to detect the ice content of storms and deliver smoother flying

1995 Leading role in the use of Future Air Navigation system to optimise routing and save fuel

1980s Leading role in developing Extended Twin Operations with the B767-200ER fleet, dramatically improving reliability, saving fuel and reducing flight times

1974 World record for largest passenger load, evacuating 674 passengers with 23 crew via B747 after Cyclone Tracy devastated Darwin

1959First airline outside the United States to fly Boeing 707 jets and to take passengers by jet across the Pacific

1943-45 Flew the world’s longest route of 28 hours from Perth to Colombo (Sri Lanka) using Catalina Flying Boats, undertaken in almost total radio silence to avoid Japanese attack: 271 safe crossings, 858 passengers, nearly a million miles

the qAntAs GRoup 12

the aviation industry – and the milestones we are set to reach over the next 10 years, as we move towards our centenary. Continued innovation will be essential to meet the needs of customers and deliver value for shareholders.

“The task for this 21st century aviation generation… is to create the infrastructure of the sky. We have all the elements in Australia for the world’s best air traffic management regime... now is the time to make Australian skies the safest, smartest and most environmentally sustainable on the planet.”AlAn Joyce, sAfeskies confeRence, cAnbeRRA, octobeR 2009

Only airline to offer Premium Economy with in-arm inflight entertainment

2008

First airline to offer ‘degustation’ First Tasting Menu with Neil Perry cuisine

2007

Next generation flying with the arrival of the first of our B787 fleet

2012

First airline to launch low fare long haul operations with Jetstar

2006

First airline to introduce specialised cabin lighting on long haul flights to promote well-being and reduce jetlag

2003

World record for commercial engine performance with 42,019 hours on-wing (equal to 1,000 return trips to the UK) with a Qantas General Electric CF6-80C2 engine installed on a B747-400 aircraft for nine years

2008

2008 Achieved a ‘perfect flight path gate to gate’ with the inaugural A380 service between Los Angeles and Melbourne using Required Navigation Performance and air traffic management to save thousands of kilograms of carbon emissions

2008 Introduced the Qantas Airbus A380, the world’s first passenger aircraft cabin wholly conceived by one acclaimed designer: Marc Newson

2006 First airline to perform a landing using the satellite technology-based Global Landing System with a B737-800

2004 First full service airline to successfully launch a budget airline, Jetstar, with the largest first day of commercial sales (100,000 fares) in aviation history

2010 Introduced a new era of domestic flying with Next Generation Check-in

2020 Centenary of Qantas


IampleasedtoreportthattheQantasGroupdeliveredagoodresultfor2009/2010andlaidthegroundworkforcontinuingandsustainablesuccess.

HighlightsHighlightsoftheyearwere:—UnderlyingProfitBeforeTax

of$377million—Revenueof$13.8billion—Operatingcashflowof$1.3billion—Cashheldatyearendof$3.7billion

In2008/2009theGroupstoodoutintheglobalaviationsectorbyrecordingaprofit,duetoitsdecisiveresponsetotheglobalfinancialcrisis.ThisyeartheGrouptrebledthatprofitbytakingrapidadvantageofimprovingconditions,andbymaximisingthestrengthsofQantasandJetstar,itstwocomplementaryflyingbrands.

Key factorsKeyfactorsintheresultthisyearincluded:—ArobustperformancebyQantas,which

wasAustralia’smostprofitableandpunctualdomesticairline,andwhichachievedasignificantlyimprovedinternationalperformancedespiteglobaluncertaintyandtheimpactofthevolcanicashdisruptions

—ArecordprofitbyJetstar,whichgrewpassengerrevenueby21percentandincreasedinternationalcapacityby50percent

—ArecordperformancebyQantasFrequentFlyer,withall-timehighsincustomersatisfactionandbenefitsderivingfromenhancedalliancerelationships,notablywiththeWoolworthsGroup

—Industry-leadingfinancialstrength,includingcashholdingsof$3.7billion,increasedoperatingcashflow,andthebestcreditratingofanyairlineintheworld

—Continuinginvestmentinamodernandsimplifiedfleet,witharound160aircraftonorder,andanaverageofonedeliverypermonthplannedforthenexteightyears

—Continuinginnovationandimprovementinthecustomerexperience,includingtheindustry-leadingNextGenerationCheck-in

—Significantprogresstowards$1.5billioninpermanentsavingsoverthreeyearsthroughtheQFutureprogram,with$533millioninsavingsachievedthisyear,alliedtoabusinesstransformationandsimplificationagenda

Industry context and outlookIn2009/2010globaloperatingconditionsimprovedfromhistoriclows,withrecoveryindemandinboththepassengerandfreightmarkets.Internationaldemandimprovedacrosspremiumandleisuresectors.Domesticbusinessdemandalsoreturnedstrongly,althoughdomesticleisuredemandcontinuedtoberelativelysoftlateinthefinancialyear.

Lookingahead,theAustraliancommercialaviationsectorwillremainhighlycompetitive,bothdomesticallyandinternationally.Aviationisacomplexindustry,subjectbothtolong-termeconomiccyclesandshort-termshocks,withhighfixedcostsandlonginvestmentleadtimes.Theindustryisglobalisingunevenly,andstillsuffersovercapacityandhighstart-upanddrop-outrates.

Tosucceed,theQantasGroup’stwoflyingbrandswillbecompetingvigorouslyeverydayintheirdifferentmarketsegments–thefullserviceQantasandthelowfaresJetstar.

Reporting clarity ThisyeartheGroupintroducedanewprimaryreportingmeasure:UnderlyingProfitBeforeTax(PBT).Thisisanon-statutorymeasurewhichisnowbeingusedbytheBoardofDirectorsandExecutiveCommitteetoassessandimprovetheperformanceoftheGroup.UnderlyingPBTmakesiteasierfortheGroup–anditsshareholders–toidentifyhowwelltheGroupmanagesthosebusinessfactorsitcontrols,byeliminatingthedifficultystatutoryaccountingtreatmentsposeinrecordingone-offandhigh-changefactorssuchashedgevolatilityincurrenciesandfuel.

Chairman’s Report

This year the Qantas Group trebled last year’s profit by taking rapid advantage of improving conditions, and by maximising the strengths of Qantas and Jetstar, its two complementary flying brands.

the qAntAs GRoup 14

Dividend approachTheBoardrecognisesthedesirabilityofreturningadividendtoshareholderswhereverpossible,andcarefulconsiderationwasgiventothismatter.OverthecomingperiodtheQantasGroupwillneedtoserviceitsveryhighcapitalrequirements,andretainingahighcreditratingremainsapriority.Theeconomicoutlookandcompetitivesituationwillcontinuetobechallengingandpotentiallyvolatile.Withthisinmind,theBoardhasdeterminednottodeliveraninterimorfinaldividendin2009/2010,andfuturedividendswillcontinuetobeassessedagainstongoingearningsperformanceandcapitalrequirements.

People OnbehalfoftheBoardofQantas,IwanttothankallmembersoftheQantasGroupfortheireffortsthroughtheyear.Itravelalot,whichmeansIoftengettoseetheirdedicationatfirsthand,acrossAustraliaandthroughoutourinternationalnetworks.Thegoodresultsthisyearareinlargeparttestamenttotheimmensededicationandskillourstaffdisplaydayindayout.Theyhavemuchtobeproudof.

LEIGH CLIFFORD, AO


IthasbeenabusyandproductiveyearattheQantasGroup.

Ourstrategyistocreatetwoairlines–QantasandJetstar–thatarethebestintheirclass,andwhichwillcontinuetogiveustheflexibilitytorideeconomiccycles,leveragedifferentsectorsofthemarket,andmaintainarobustoperatingcashflow.Ourfleetstrategyreflectsthisapproach.

WithMarcNewson’ssignaturedesignandadedicatedcrewinallcabins,theQantasAirbus380hasbecomeadestinationinitsownright.Wewillhave10inserviceby2011,andafurther10comingintoserviceoverthenextfiveyears.

Wehavealsobroughtforwardourorderfor50Boeing787s,withthefirstnowdueinmid-2012.Wewillbethesecondlargestairlinecustomerforthesenew-eraaircraft–offeringimprovedtechnologies,loweroperatingcosts,fuelefficiencies,andgreaterpassengercomfort.

Thefirst15B787swillgotoJetstarInternational,enablingthetransferofA330-200stoQantasandtheearlierretirementofeightQantasB767-300ERs,effectivelyrenewingbothairlines’fleets.

CEO’s Report

Our strategy is to create two airlines – Qantas and Jetstar – that are the best in their class, giving us the flexibility to ride economic cycles, leverage different sectors of the market, and maintain a robust operating cash flow.

the qAntAs GRoup 16

Qantas Itisnow90yearssinceQantasstartedinoutbackQueensland,andweremainhardatworktomakeajourneywithQantasafreshandenjoyableexperienceforeachnewgenerationoftravellers.

Inthepastyearwehaveintroducedmorefeaturestogiveourcustomersgreatercontrolandflexibility.Thisincludesexitrowseatpurchase,additionalbaggageallowancepurchase,advancedseatselectionandcombinedbookingsforflights,carhireandtravelinsurance.

WearesuccessfullyintroducingNextGenerationCheck-in,anditwillprogressivelyberolledoutaroundmajordomesticports.WithournewQCardReaders,NextGenerationCheck-inwillbeassimpleasaflickofacard,andwe’realsosimplifyingthebagdropprocess.

OurQantas‘refresh’projectisaboutredefiningtheQantassignatureathomeandintheworld–onethatismodern,caring,distinctive,contemporaryandconsistent.

Cabin:WearecreatingaseamlessBusinessClassoffering.We’llbeinvestingmillionstoupgradethecabinandseatsonnineB747s,whichwillbringtheminlinewithourA380s.OverthecomingyearourdomesticfleetwillberevampedwithanewlookBusinessClassproduct.

On-board: NewdomesticBusinessClassmenuswillbedesignedbyourQantasconsultantchefNeilPerrytobemoreconsistentwithourinternationaloffering.Anewinflightentertainmentformatisalsobeingintroduced.

Lounges: Wehaveoneoftheworld’sbestdomesticairlinenetworksandourinternationalloungesdesignedbyMarcNewsonsetthebenchmarkforglobalexcellence.WewillbeundertakingasignificantrefreshofQantasClubloungefacilities,withourdomesticBusinessloungesmodelledonourinternationalBusinesslounges.NeilPerry willdesignthefoodmenus.

OurenhancedQantasFrequentFlyerprogramnowhas7.2millionmembersandcontinuestooffermajoropportunitiesfortheGrouptowinandrewardloyalcustomers.

JetstarWithJetstar,thegoalistocreatethebestlowfaresairlineintheworld,whichisallaboutsustainablegrowthandbeingtruetothepositiveandenergeticvaluesofthebrand.Forexample,thisyearJetstarwasthefirstairlineintheworldtotrialtheiPadasaninflightentertainmentsystem.

Jetstarhasnowcarriedmorethan50millionpassengerssincetakingoffin2004,withmorethanhalfofthemtravellingforunder$100.ItisnowwellplacedinAsiathroughJetstarAsia,whichisbasedinSingapore,andJetstarPacificinVietnam.Ithasarealopportunitytoachievemore.

Our peopleThisyearourpeoplecontinuedtoexcel:fromexceptionalcustomercareduringthevolcanicashcrisis,throughtodeliveringaworldfirstnewcheck-insystem,theyhavegoneaboveandbeyond.OnbehalfoftheleadershipteamIwanttoacknowledgeandthankeveryonefortheirefforts.

ALAN JOYCE


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In2009/2010theQantasGroupdeliveredastrongresultanddemonstratedthatitiswell-positionedforfuturegrowth.UnderlyingProfitBeforeTax(PBT)tripled.Liquiditywasstrongwith$3.7billionincash,supportinganambitiousongoingprogramofinvestmentinfleet,productandservice.Revenuewas$13.8billionandoperatingcashflow$1.3billion.Significantcostsavingswereachieved.TheQFutureprogramexceededitstargetwithbenefitsof$533millionandunitcosts(excludingfuel)weredownby4.3percentacrosstheGroup.

TheGroupcontinuedtodeliveragainstitsstrategicpriorities:—Safetyasnumberonepriority—Optimisingthetwoflyingbrands:

QantasandJetstar—Transformingtheinternationalbusiness—Profitablybuildingon65percent

domesticmarketshare—Enhancingthecustomerexperience—Maximisingthevalueofportfolio

businessesandinvestments—EngagingpeopleanddevelopingtalentThisyear’sresultreflectsthesuccessoftheQantasGroup’stwoairlinebrandsandportfoliostrategy.Withallsegmentsprofitable,theGrouphasaplatformforsustainablegrowthasoperatingconditionsimprove.

Revenue $13.8 billionUnderlying Profit Before Tax $377 millionOperating cash flow $1.3 billionCash held at year end $3.7 billion

Financial Performance

the qAntAs GRoup 18

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Flying safelyTheQantasGroupisinternationallyrespectedforitsdedicationtosafeflyingoperations.

QantascarriestheInternationalAirTransportAssociation’s(IATA)OperationalSafetyAuditCertificationandissubjecttorigorousbiennialreviewstosecureitsrenewal,mostrecentlyduring2010.

EachyearQantasinvests$1.4billioninengineeringandmaintenancetoensurethatthehigheststandardsofoperationalsafetyandperformanceareupheld.Ouron-timeperformanceandreliabilityaretestimonytotheworkdonebyourengineeringworkforceandtheexpertiseofourpilots.

Werespondconservativelytoanymechanicalorperformanceissueandalwaysputsafetybeforeschedule.Qantasmeets,andinmanycasesexceeds,allitsobligationstoregulators,includingtheCivilAviationSafetyAuthority(CASA)andmanyotherinternationalauthorities.AswithIATA,theseregulatorsauditQantasthoroughlyandfrequently.

Safety managementIn2009asingleQantasManagementSystem(QMS)wasestablishedcoveringallaspectsofsafety,health,environmentalandsecurityperformance.TheQMSprovidesthestructurerequiredtoachieveongoingimprovementintheQantasGroup’ssafetyperformanceandaconsistentapproachtomanagementandlegislativecompliance.Itisacknowledgedasabest-practicemodelintheairlineindustry.

AcrosstheQantasGroup,air,groundandpeoplesafetypracticesaregovernedbymandatorypoliciesthatapplytoallemployees.Managersandemployeesareexpected‘todemonstrateanddriveagenuinecommitmenttosafety’throughtheirpersonalactionsandbyeffectivemanagementofrisk.Wemeasuresafetyperformanceagainstkeymetricsandrecogniseemployeeswhodemonstratesafetyexcellence.

SecurityTheQantasGroupdoesnotcompromisewhenitcomestothesecurityofouroperations,customersandstaff.WeworkcloselywithAustralianGovernmentagenciesinAustraliaandoverseastoassessandrespondtosecurityissueswhentheyariseandensurethatpolicyandregulatorychangesareimplementedeffectively.

PoliticalissueswiththepotentialtoimpacttheGroup–suchasthecivilunrestinBangkokinearly2010–aremanagedthroughheightenedthreatmonitoringandassessmentprocesses,securitycoordinationonthegroundandoperationalcontingencyplans.

Qantasspecialevents,suchastheFormula1™AustralianGrandPrixandQantasSoccerooseventsinAustraliaandattheFIFAWorldCup,areprotectedbycarefullyplannedsecurityoperations.

Safety is the Qantas Group’s first priority.

At the heart of our business is an unwavering commitment to world’s best safety practices and reporting.


Occupational health and safetyTheQantasGroup’sOccupationalHealthandSafety(OHS)programshelpusworktowardsourgoalofzeroinjuriesthrougheffectivesystems,ahealthyandsafeworkenvironmentandastrongsafetyculture.BusinessunitshavetailoredtheOHSmanagementsystemtotheirriskprofilesandoperationalneeds

Ahealthsurveillanceprogrammonitorsworkplaceconditionsandemergingrisks.Thisprogramincludesenvironmentalmonitoringandhealthassessmentsforrelevantemployeegroups.

Performance TheQantasGrouphasbeenusingLostTimeInjuryFrequencyRate(LTIFR)asaprimaryindicatorforOHSperformancesince2001,resultinginan85percentreductionoverthistime.PerformanceindicatorsandtargetsarecontinuallyunderreviewtoensuremanagementhastherightinformationtoimproveOHSperformance.

Commencingin2010/2011,wewilltransitiontoTotalRecordableInjuryandLostWorkCaseFrequencyRatesaspartoftheQantasGroup’scontinuedcommitmenttomoremeaningfulmeasurementofinjurypreventionperformance.ThistransitionaimstoimprovethevisibilityofQantasGoupworkplaceincidents.

Performance highlights:— Lost Time Injury Frequency Rate reduced

from 31.7 (2001/2002) to 4.3 (2009/2010)— No workplace fatalities in 2009/2010

the qAntAs GRoup 22

ForQantas,itshutdownourEuropeanservicesforsixdays,impactingover15,000customers.

WeimmediatelyactivatedourCrisisManagementCentre,whereadedicatedteamofQantasemployeesfromacrossthebusinessmanagedourresponseandrecoveryoperations.

OurIntegratedOperationsCentre(IOC),Qantas’24-hourhubforoperationalplanningandcontrol,wasvitalindevelopingandimplementingacoordinatedapproach.FromtheIOC,Qantas’flightdispatchandflightoperationsteamsandQantasMeteorologyremainedinconstantcontactwiththe

relevantairtrafficcontrolauthoritiesinEurope,monitoringthelevelofashconcentrationandrelatedairspacerestrictions.

Qantas’experienceinplanningandoperatingservicessafelyinareasofknownvolcanicactivity–90percentofourinternationaloperationstraversesuchareas–wasinvaluableininformingourresponsetothesituation.

Throughouttheperiodofdisruption,weputourcustomersfirst.Operationalteamsworldwide,alongwithourspecialistcrisisteams,gavehumanitariansupporttocustomersstrandedawayfromhomeandprovidedassistanceinkeyairports.

Securingaccommodationforthesepassengerswasessential.Intotal,Qantasprovidedover15,000roomnightsinover50hotels,acrosssixcountries.

Aftercarefullyconsideringallrelevantfactors,andcloseliaisonwithEuropeanauthorities,QantasresumedallservicesbetweenEuropeandAustraliaon21April.

Directlyandindirectly,ourcustomershavetoldusthatweexceededtheirexpectations,givingatangibledemonstrationofourcommitmenttocustomercareandsafety.

“I wanted to let you know how impressed I was with your team’s handling of the situation caused by the closure of

UK airspace. Your employees took the time to keep the communication lines open and ensure we were able to travel

back as a matter of priority. It was very much appreciated when I know how much pressure they must have been under.”

Managing the ash cloud

The eruption of the Eyjafjallajökull volcano in Iceland on 15 April 2010 had an unprecedented impact on airlines around the world.

CASE STUDY

JonAthAn nyeqAntAs pAssenGeR


We’ve been part of Australian life for 90 years.

Qantas has succeeded for 90 years. Our achievements have been based on scrupulous attention to our core safety values, alertness to business risks and opportunities, a culture of innovation, and a genuine commitment to the Australian community which we serve at home and represent throughout the world, and which has supported our endeavours.

Aviationisrecognisedasoneoftheworld’smostdifficultindustries.Itisnotstraightforward.Evenduringthebestofeconomictimes,producingsuperiorindustryreturnsisachallenge.Aircraftownershipcarriessteep,fixedcosts.Variableexpenses,inparticularfuelandlabour,constituteadisproportionateshareofcostsandcanbedifficulttocontrol.Aviationisverysensitivetothe

upsanddownsofeconomiccycles,andpronetosuddenshockscausedbyenvironment,healthandsecurityissues.Theindustryhasgrappledwithover-capacityformanyyears,withincreasingcompetitionfromlowercostandoftengovernment-supportedairlines.

SoatQantaswenevertakeourpositionforgranted,andourapproachtosustainabilitycontinuestoevolve.

Sustainabilityissues,performanceandprogramsareintegratedthroughoutthisAnnualReview.TheQantasGroup’sRiskManagementFrameworkestablishesacommonapproachforidentifying,assessingandmanagingrisksandthisissupportedbythewiderCorporateGovernanceframeworktoensuretheprotectionandenhancementofshareholdervalue.

Sustainability frameworks

TheQantasGroupdrawsuponvoluntarysustainabilityframeworkssuchastheGlobalReportingInitiativeG3SustainabilityReportingGuidelines.

—Weareincludedinkeyresponsibleinvestmentindexes:theDowJonesSustainabilityIndex(DJSI)AsiaPacific,andtheFTSE4GoodGlobalIndexandAustralia30Index

—In2009Qantascameequal5thintheBestEnvironment,Social,Governance(ESG)disclosurescategoryatthe2009AustralasianInvestorRelationsAwards

Keysustainabilitymetricscanbefoundonpages107to114oftheAnnualReport.SupplementaryinvestorsustainabilityinformationcanbefoundintheQantasDataBook,availablefromqantas.com


For the Qantas Group, sustainability is about managing short-term and long-term risks, seizing opportunities, and doing things right for our shareholders, our customers, our people and our community.

Sustainable Operations

Industry challenges and opportunities

Examples of how the Qantas Group responds

Maintainingthehigheststandardsofsafety

—Commitmenttosafetyasfirstpriority,underpinnedbyindustry-leadingpolicies,systemsandtraining

Developingresiliencetofinancialcyclesandrealisinginvestmentopportunities

—Investmentgradecreditratingtolowercostofcapital—Strongcashpositiontolowerriskandprovideforunexpectedevents—Costmanagementprogramstogenerateefficienciesandlong-term

financialsustainability

Adaptingbusinessstrategytomanagechangingeconomicconditions

—Twoflyingbrandsstrategytoadjustcapacity,pricingandmarketsegmentationasthemarketmovesupordown

—QFuturetransformationprogramtoincreaseresponsiveness

Remainingcompetitiveinachallengingandvolatileindustrycontext

—Fleetrenewaltoreducelong-termcostsandgrowrevenues—Strongalliancerelationshipsandstrategicinvestmentstospreadriskand

opportunityacrossmarketsandprovidenetworkdepth—Qantas:innovationstodrivehighersatisfactionandimprovedcustomeradvocacy;

focusontheend-to-endcustomerexperience;improvementsinproductconsistencyacrossthefleetincludingaircraftreconfiguration;brandrenewal;pursuitofefficienciestolowerthecostbase;CustomerCharterestablished

—Jetstar:effectivecapacitymanagement;strongpromotionalcampaigns;ground-breakingstrategicalliancerelationships(egAirAsia);CustomerCharterestablished

Pursuinggrowthopportunitiesinemergingmarkets

—Qantasalliancerelationshipswithcarriersinemergingmarkets(egLANandChinaEastern)

—Jetstarpan-AsianstrategyincludingJetstarPacific(Vietnam)andJetstarAsia(Singapore)

Engagingwithstakeholdersandregulatorsacrossmultiplemarkets

—Strongstakeholderrelations,withactiveparticipationingovernmentandindustryconsultationsandseniorrepresentationinindustryassociations(egIATA)

—ComprehensiveGroupPolicyFrameworkguidingcompliancewithlawsandregulationsinthecountriesinwhichtheGroupoperates

Respondingtounexpectedshocksandcrises

—Purpose-builtCrisisManagementCentrewithdetailedcrisismanagementplans—Scenarioplanningsupplementedbysimulatedcrisistrainingexercises

the qAntAs GRoup 26

Industry challenges and opportunities

Examples of how the Qantas Group responds

Managingcurrencyandfuelpricefluctuations

—Award-winningTreasuryfunction—Hedging,includingoptions,toenableparticipationwhenoilpricesarelow

andprotectionwhenoilpricesarehigh

Exploitingnewtechnologies —BreakthroughproductandserviceinnovationssuchasNextGenerationCheck-in—Commitmenttotechnologicallyadvancedaircraft(egAirbusA380,Boeing787)

Enhancingbrandstrengthandcustomeradvocacy

—Detailedcustomerresearchtodriveimprovementsandadvocacy—Extensiveprogramofsponsorshipsandcharitablegivingthroughstaff

initiativesandQantasFoundation—Industrypartnershipstopromotetourism,businessandevents

Operatinginanenvironmentallysustainablemannerandmanagingcarbonrisk

—Fuelefficiencyprogram,investmentinadvancedtechnologiesandfuelefficientaircraft,airtrafficmanagementleadership,sustainableaviationfueldevelopment

—Advocacyonlegislative,regulatoryandcommercialissues—Carbonoffsetschemes,partnershipswithenvironmentalorganisationsand

engagementwithemployees—Proactiveapproachtocarbonreadinessinadvanceofregulatory/legislative

requirements

Developinghumancapitalandengagingemployees

—Leadershipprogramsfortop100-500managers—TalentprogramsincludingGraduateProgram,EmergingLeaderProgramand

theHarvardLeadershipProgram—Majorapprenticeshipprogramforengineers—QantasOrganisationalBehaviourstodriveculturalchange—Systematicapproachtounionnegotiationsincludingimprovingunionrelations


The Qantas Group carried 41.4 million passengers in 2009/2010.

Our two-brand strategy enabled us to respond quickly and decisively to the global economic downturn, and in 2009/2010 helped us achieve renewed growth and lay the foundation for continued sustainable profitability.

AdiverseportfolioofassetsgivestheQantasGroupstabilityofearningsandthecapacitytoapplyleverageindifferentsectorsofthemarket.Aninvestment-gradecreditratingsupportstherenewalofourfleet,infrastructureandproduct,andwemaintainliquiditythroughastrongoperatingcashflow.

Domestically,thecombinationofQantasandJetstariskeytotheQantasGroupmaximisingitsshareoftheAustralianaviationmarket.InregionalAustralia,QantasLinkconnectstourismandbusinesscentresusingastate-of-the-artfleet,acrossanetworkofover50destinations.

Internationally,Qantasisrankedamongtheworld’sleadingairlines,withareputationforoperationalexcellenceandqualityofproductandservice.

TheJetstarbrandisnowestablishedandincreasinglypopularacrossAsia,AustralasiaandtheSouthPacific,withambitiousplanstogrowfurtherasitsfleetincreasesinsize.

Alongsidethecoreflyingbrands,QantasFrequentFlyerandQantasFreightopenupfurtherrevenuestreamsfortheQantasGroup,enhancingourabilitytoadapttochangingmarketconditions.

Qantas’alliancenetworkgivesourcustomersaccesstoarangeofhigh-qualityairlinepartners,providingextensivecodeshareservicesinEurope,NorthAmericaandtheAsia-Pacific.

How the two-brand strategy worksIn2009/2010QantasandJetstaroperatedjointlyon26routesinAustraliaandinternationally.ClearbranddefinitionanddifferingcustomerdemandsmaketheseparallelservicesacompetitiveadvantagefortheQantasGroup.Whereitismoreviableforonecarriertooperatethanboth,wehavetheoptionofdeployingtheairlinethatisbestsuitedtomarketconditionsandpassengerdemand,andwhichwilldeliverthebestreturns.

Domestic routesStrongdemandacrossthespectrum–fromlow-costleisuretopremiumbusiness–allowedJetstartojoinQantason22routeswithinAustralia,includingSydney-MelbourneandMelbourne-Brisbane,helpingprotectourshareofthedomesticmarket.

New ZealandShiftingdemandpatternsintheNewZealanddomesticmarketsawJetstarreplaceQantasinprovidingtheseservices.Meanwhile,bothcarriersoperatetrans-Tasmanflights,cateringtohigh-densitybusinessandleisuretravel.

JapanJetstartooktheleadontheQantasGroupflyingtoJapanastheeconomicslowdownhitthecountry–however,increasingdemandatbothendsofthemarketsawJetstarrelaunchCairns-OsakaflightsandQantasincreasecapacityonSydney-Tokyoservicesin2009/2010.

IndonesiaQantasoperatesservicestoJakarta,Indonesia’scentreofbusinessandgovernment,whileJetstarservesbothJakartaandtheresortislandofBali.


Wedeliverworld-classproductandserviceacrossacomprehensivedomesticandinternationalnetwork.Ourapproachtooperationalsafetyisuncompromising.

Qantasoperatesover2,300flightsaweekwithinAustraliaandover600flightsaweekinternationally.In2009/2010wecompletedmorethan150,000flights.

WithinAustralia,improvingdemandhasenabledustoincreasecapacityondomesticroutes,andweareinvestingstronglyinourterminalinfrastructureinkeyhubs,includingCanberraandPerth.TheintroductionofnewAirbusA330-200aircraftintothedomesticnetwork,offeringstate-of-the-artseatingandinflightentertainment,hasimprovedQantas’offeringonkeysectors.

Thephasedintroductionoftheaward-winningA380oncoreinternationalroutestotheUKandNorthAmericahasupgradedbothcapacityandproductontheseservices,andwearealsoincreasingcapacitytoSouthAfricaandonsomeAsianroutes.QantaswasthesecondairlinetobringtheA380intoservice,andtheaircraftremainsthecentrepieceofourfleetrenewalprogram,togetherwiththeBoeing787.NootherairlineoperatestheA380onthetrans-PacificroutebetweenAustraliaandtheUSA.

Ourexpertconsultants–fromdesignerMarcNewsontochefNeilPerry–representthebestofAustraliaandhelpusachievethehigheststandardsofqualityonthegroundandintheair.

In2009/2010weconsolidatedandexpandedourcodesharewithBritishAirways(BA),bothonJointServicesAgreement(JSA)routesbetweenAustraliaandtheUKandonservicesbetweenLondonandEurope.WealsoexpandedcodesharingwithChinaEasterntoincludeservicestoShanghaifromSingaporeand

ondomesticflightswithinChina.Theoneworldalliance,ofwhichQantasisafoundingmember,isratedtheleadingglobalairlinegrouping.

Movinginto2010/2011,Qantasisconcentratingmorethaneveronensuringexemplaryproductandserviceforcustomersineverypartofthebusiness.ThiseffortisaboutdeliveringthebestofQantas,acrossallofQantas.

Bylisteningcarefullytoourcustomers,wearestrivingtoimproveeveryaspectofthetravelexperience.Inthepastyear,wehaveintroducedanumberofnewfeaturestogivecustomersmorecontrolandflexibility,andwearemovingforwardwithamajorprojecttoenhancethepre-flightexperience:NextGenerationCheck-in(seep.54).

RenewingQantasisthekeytodeliveringafreshandenjoyableexperienceforeachsuccessivegenerationoftravellers.Throughtheseinitiativesandothers,weareseekingtomakeQantasagenuinenextgenerationpremiumairline,andtodefineaQantasbrandthatismodern,caringanddistinctive.

Qantas is a full-service, premium carrier. In 2010 we were again named one of the world’s top 10 airlines in the SkyTrax World Airline Awards.

On-time performanceWe continue to lead the domestic market for on-time performance. In 2009/2010 Qantas was ranked first among the major domestic airlines in on-time departures for nine of the 12 months and first in arrivals for 10 of the 12 months. Punctuality and reliability are key factors in customer satisfaction, and we work hard at maintaining the high performance standards Australians expect of us.

the qAntAs GRoup 30

Australian International Design Award 2009 for the A380 Economy SeatBest Long Haul Airline, 2009 ULTRAS (UK Daily Telegraph)Best Airline Australasia, 2009 Skytrax World Airline Awards Aviation CategoryCondé Nast Traveller Innovation and Design Awards 2009 for A380 designBest Airline Accessory, Cutlery for Qantas, Wallpaper Design Award 2009Chicago Athenaeum Good Design Award for the First Suite in 2009SkyTrax Best Premium Economy Class Seat 2010

Thepremiumtravelmarketischangingfundamentally–atrendthatpre-datesthe2008/2009financialcrisis.

TheaircraftconfigurationprogramweannouncedinFebruary2010isourresponsetothisevolvingmarket.Itisa$400millioninvestmentoverthreeyearsinupgradingnineB747aircraftandreconfiguringourA380fleettoenableustomeetforecastchangesinpassengerdemand,maximiseyieldsandgeneraterevenueandinvestorreturns.

Overall,thereconfigurationwillseecapacityequivalenttomorethanthreeB747sbeingaddedtotheQantasfleet.Itwillresultina20percentincreaseperpassengerintheamountofFirstandBusinesscabinspaceavailabletoQantascustomers,whilePremiumEconomycapacityonourlong-haulfleetwillgrowby27percent.

ByupgradingthecabinandseatproductonourB747s,wewillgiveallourlong-haulcustomersaccesstoanA380-standardflightexperience–buildingonoutstandingpassengersatisfactionwiththeA380.

Inadjustingthebalanceofseatingclassesonbothtypesofaircraft,weareensuringthatourinternationalflyingcapacityisbettermatchedtodemandpatternsandmorecompetitiveoncoreroutes.

WeremaincommittedtoFirstClasstravel,and12ofourA380aircraftwillcontinuetofeatureouraward-winningFirstSuites.OntheremainingeightA380andnineB747aircraft,Business,PremiumEconomyandEconomycapacitywillbemorecloselymatchedtomarketexpectations.

AircraftreconfigurationispartofouroverarchingQFutureprogram,abusinessefficiencydrivethatcoversallaspectsofQantasactivity.

Aircraft configuration: meeting customer demand


QFutureUnderlying our dedication to high performance is a three-year business transformation program, QFuture, aimed at equipping Qantas for sustainable growth in an increasingly competitive operating environment.

—Reviewingmaintenancecontractsandseekingtochangebusinessmodelsand/orworkwithsupplierstoidentifyimprovementopportunities

—LookingatmateriallogisticsacrossinventoryprocurementandrepairprocessesasameansofconservingcashwithintheQantasGroup

—Reviewingwarehousingrequirementstoensurespaceisoptimised

—ITenablementprojecttoensurethattherightamountofinventoryisstoredintherightlocationaroundthenetworkandimprovinginventoryavailabilitythroughstatisticalanalysis

—Moreefficientapproachtoaircraftutilisationandschedulingwithaircrafttypeandcapacitybetteralignedtodemand

—Reducingthetimeaircraftspendontheground,creatingopportunitiesforincreasedcapacityanddomesticorinternationalgrowth,andmoreeffectiveuseoflongaircraftlayoversoverseas

—In2009/2010upgradedSydney-TokyoservicesfromA330toB747,announcedaseventhdailySydney-JohannesburgserviceandimprovedconnectivityforservicesthroughHongKong

—A330-200aircraftbroughtintoserviceondomesticnetworktoincreasecapacityandupgradeproduct

—DevelopingandleveragingalliancestoimproveQantas’positioninkeymarkets

—IdentifyingopportunitiestoadddepthtoQantas’network,attractnewcustomersandgeneraterevenue

—In2009/2010expandedcodesharerelationshipwithBAonsectorsbetweenLondonandEurope,andextendedJointServicesAgreementwithBAonAustralia-UKroutes

—AddedsevennewChinesecitiestodomesticcodesharearrangementwithChinaEasternandbegancodesharingonChinaEasternservicesbetweenSingaporeandShanghai

—BuildingpartnershipstogrowingmarketssuchasIndia,SouthAmericaandRussia

Engineering supply chain

Aircraft utilisation and scheduling

Alliances

the qAntAs GRoup 32

—Improvingstrategy,governance,organisation,performancemeasurementandreportingacrossQantasProcurement

—Adoptingleadingpracticesourcingandcategorymanagementprocesses

—Implementingnewprocure-to-paytechnologyandprocessestodriveoperationalefficiency

—WorkingtoimprovetheprocurementexperienceforQantasbuyersandsuppliers

—Targeting$100millionincostsavingsfromimprovementsinITservicedelivery

—In2009/2010completeddesktopandend-usercomputertransitiontoFujitsu,resultinginbroaderrangeofproducts,betteruserexperienceandlowerunitcosts

—Commencedroll-outofimprovedemailplatformtoenhanceemployeecommunication,andimplementedchangestoprogramdeliveryservicestobettermeetbusinessdemand

—Structuralandculturalchangestodevelopandengageemployees,infrastructureanddeliverychangestoenhanceoperationalefficiency

—MajorrefurbishmentofQantas’Mascotcampus,commencinginlate2010

—Modern,open-planofficeenvironmentforaconsistentlookandfeelandabetterworkingenvironmentforemployees

—Energyefficientdesignwillsupportenvironmentaltargetsandreduceenergycosts

—CommunalspacestoencouragecollaborationamongQantasemployeesworkinginandvisitingtheMascotcampus

Business Information Solutions (BIS) transformation

Procurement transformation

Office consolidation

QFuturewaslaunchedinJuly2009asanintegralpartofourStrategicandFinancialPlan,targetingbenefitsof$1.5billionoverthethreeyearsto2011/2012.QFutureisabout:—creatingvalueforourcustomers—Optimisingrevenueandmargins—Drivingoperationalefficiency—Engagingourworkforce

ArangeofQFutureprojectsareunderwayacrossallareasofthebusiness.In2010reviewswereintroducedtoidentifyfurtherstrategicinitiatives,highlightimprovementopportunitiesandhelpbusinessareasworktowardsunitcostreduction.Thefirsttworeviews,undertakeninCustomerandMarketingandAirports,resultedinarangeofopportunities

beingaddedtotheQFutureagendaandfurtherreviewsareplannedoverthenextfinancialyear.In2009/2010QFutureprojectsdeliveredbenefitsof$533million,exceedingexpectations.


QantasLink plays a vital role in providing air services for communities and businesses in regional Australia.

A$600millioninvestmentin21nextgenerationBombardierQ400regionalaircrafthasdeliveredasuperiorproducttoQantasLinkcustomers,capacitygrowthincoremarketsandenabledexpansionintonewdestinations.

QantasLinkoperates2,000flightsaweekacross54destinationsinAustralia,plusPortMoresbyinPapuaNewGuinea,andcarries4.3millionpassengersayear.

During2009/2010QantasLinkaddedsignificantcapacityinQueenslandandNSW,andlaunchednewservicestoPortLincoln.Wealsolaunchedourfirst

internationalroute,betweenCairnsandPortMoresby,tocatertostrongbusinesstraveldemand.

QantasLink’scommitmenttoregionalAustraliagoesbeyondairservices.TosupportournewAdelaide-PortLincolnservice,wehaveestablishedacabincrewbaseinAdelaide.

QantasLinkhasinvestedstronglyinitsheavymaintenancebaseinTamworth,whichnowhostsQ400maintenance,andwesponsorawiderangeofregionalsportingandculturaleventsacrossAustralia,aswellassupportingthe

QantasGroup’sbroadercontributiontodomestictourismpromotion.Intotal,QantasLinkprovidesdirectemploymentformorethan1,100peopleinmetropolitanandregionalcentres.

TheQantasLinknetwork,andQantasLinkcustomers,arefullyintegratedwithQantas’globalnetworkthroughintrastate,interstateandinternationalconnections;accesstotheQantasbookingsystemandqantas.com;FrequentFlyerandloungebenefits;andaffiliationwiththeoneworldalliance.

Grew the Q400 fleet to 21 flagship aircraft, serving 54 destinations in Australia plus Port Moresby in PNG.

the qAntAs GRoup 34

QantasFrequentFlyermemberscanaccumulatepointsonflightswithQantas,withJetstarandwith25codeshareoroneworldpartnerairlines,drawingontheQantasGroup’sstrategicalliancerelationships.

Morethan480QantasFrequentFlyerpartnersacrossarangeofcategoriesenablememberstoearnpointsinreturnforeverydayexpenditure,suchasgroceries.

Theyear-oldpartnershipbetweenQantasFrequentFlyerandWoolworthsgivesmembersunprecedentedscopetoearnpoints.

During2009/2010QantasFrequentFlyerstrengtheneditslinkswithdirectearncreditcardpartnerssuchasANZ,AmericanExpress,Citibank,CommonwealthBank,DinersClub,NationalAustraliaBank,StGeorgeandWestpac.

QantasFrequentFlyeralsoprovidesmemberswithflexibilityinredeemingpoints,offeringarangeofoptionsforbookingseats.Pointscanbeusedforupgraderequests,transferredbetweenfamilymembersortopurchaseover1,200productsandexperiencesfromtheQantasFrequentFlyerstore.Weareconstantlyseekingnewwaystoincreasethisscale

andflexibilityandenhancethevalueourcustomersgetfromtheirFrequentFlyerearnings.

In2009/2010morethan1.4millionnewmembersjoinedQantasFrequentFlyer,takingthetotalnumberofmembersto7.2million.

The Qantas Frequent Flyer program is a key asset for the Qantas Group. It is Australia’s premier coalition loyalty program, allowing members to combine points from flying, credit or debit card spend and retail spend into a single account.

Reached 7,000,000 Qantas Frequent Flyer members in 2009/2010.


SixyearsafterlaunchingAustraliandomesticservicesJetstaroffers2,350flightsaweekwithinAustralia,NewZealand,Asiaandinternationally.TheJetstarnetworkincludes52destinations,andin2009/2010Jetstarcarried14.6millionpassengers(excludingJetstarPacific).

Jetstaroffersmorethan1,300flightsaweekto30destinationsonitsdomesticshort-haulnetworkwithinAustraliaandinternationalservicesfromAustralia.

TheexpansionoftheJetstarbrandintoAsia,fromJetstarAsia’sgrowingSingaporehubandwithJetstarPacificinVietnam,hasseenitdrivetheemergenceoflow-costtravelintheworld’sfastest-growingregion.

Domestic and international expansionInlate2009JetstarannouncedamajorexpansionofdomesticcapacitysupportedbytheadditionoffourA320aircraft,equatingtotheintroductionofanextra700,000seatsperyear.OntheJetstarinternationalnetwork,werelaunchedafourtimesweeklyservicefromCairnstoOsakaandcommencedoperationsbetweenSydneyandFiji,whileourservicestoholidaydestinationssuchasBali,PhuketandHonoluluremainconsistentlypopular.

SincereplacingQantasinoperatingNewZealanddomesticservicesinJune2009,Jetstarhasestablisheditselfrapidlyinthemarket.Weofferupto84returnserviceseachweekbetweenAuckland,

Wellington,ChristchurchandQueenstownandwillhaveeightA320aircraftbasedinNewZealandbyearly2011.

Jetstarcontinuestoplaceastrongfocusonusingtechnologytoimprovethepassengerexperience,withSMSboardingpassestobeintroducedacrossourAustralianandNewZealanddomesticnetworks–addingtoourexistingwebcheck-inoptionsandself-servicekiosksattheairport.WehavealsoannouncedplanstointroducetheiPadforinflightentertainmentacrossournetworkinAustralia,operationsfromAustraliaandpotentiallybeyond.Our10-pointcustomercharter–the‘JetstarCustomerGuarantee’–underlinesourcommitmenttomatchinglowfareswithoutstandingservice.

Jetstar’s growth in Australia, New Zealand and across the Asia-Pacific region reflects the success of our dynamic, low fares brand. We provide efficient, frequent services across a wide network of leisure destinations, operated by a modern fleet.

the qAntAs GRoup 36

Pan-Asian strategyJetstarAsia’soperationshavebenefitedfromsubstantialinvestment,withanadditionalthreeA320aircraftallocatedtoourSingaporehubtosupportpan-Asiangrowth,includingthecommencementofservicesintomainlandChina.Thishassupporteda46percentincreaseinpassengernumbersthroughSingapore.Fromlate2010thisgrowthstrategywillextendtolong-haulflying.NewservicesoutofSingaporetoMelbourneandAucklandwillbeoperatedbytwodedicatedA330aircraftandcreate200newjobs.

Jetstarisalsodevelopingstrategicairlinepartnerships.InJanuary2010weannouncedagroundbreakingnon-revenuepartnershipwithAirAsia.InJune2010wefurthergrewourinterlineagreementswithAirFrance-KLM,enablingseamlessticketingacrossbothairlines’networks–thefirstsuchagreementcoveringallJetstarairlinessignedwithafullservicecarrieroutsideQantas.

Carried more than 50 million passengers since 2004, with more than half travelling for under $100.


Qantas Freight

Following the slowdown in global volumes associated with the economic downturn, Qantas Freight has seen a steady recovery in 2009/2010 and is laying the foundations for future sustainable growth.

qantas.com averages eight million visits each month.

Thisisbeingachievedthroughaninternalefficiencyandtransformationprogram–FreightFutures–andarenewedemphasisoncustomerservicedelivery.

In2009/2010wecarriedouta$40millionreplacementoflegacyITsystemswithacargo-specificsystem,iCargo;achievedourhighestevercustomersatisfactionrankingandanAirCargoExcellenceAward;andjoinedtheIATA-sponsoredCargo2000organisation,anindustryinitiativetoimplementanewqualitymanagementsystemforthesector.

QantasFreightisideallypositionedtotapintoeconomicgrowthintheAsia-Pacificregion.Around50percentofourrevenueisnowderivedfromfreight

trafficfromAsia,withmuchofthispassingthroughShanghai,ourprimaryhubintheregion.

Ourtrans-TasmanservicesareoperatedbyacombinationofscheduledQantasandJetstarpassengerflightsandadedicatedfreighter,whiledomesticallyourtwojointventurecompanies–AustralianairExpressandStarTrackExpress–offerextensiveairandroadfreightoptionsforAustralianbusinesses.

Wearealsoinvestingstronglyininfrastructure,includingourterminalsinBrisbane,Melbourne,Perth,SydneyandLosAngeles.Ourstate-of-the-artterminalfacilitiesinMelbourne,redevelopedduring2009,havesignificantlyimprovedourstorageandhandlingcapability.

ThewebsiteremainsQantas’primarybookingchannelandAustralia’snumberonetravelsite.Itwasredesignedduring2009/2010forbetterfunctionalityandamoreattractivelook.

In2009/2010qantas.comintroduceda‘PricePromise’onhotels,carhire,activitiesandtransfers,providingcustomerswithguaranteedlowratesfortheseproducts.Interlinesellingcontinuedtoexpand,socustomerscannowsearchandbookflightsto65destinationsinAustraliaandover190destinationsaroundtheworldwithQantas,Jetstar,oneworldallianceairlinesandmorethan35othercarriers.Othernewfeaturesinclude:—Exitrowseatpurchase—Additionalbaggageallowancepurchase—Advancedseatselection—Combinedbookingsforflights,

carhireandtravelinsuranceMobilefunctionalityhasalsobeenexpandedandtheoptionsavailabletoQantasFrequentFlyermembersincreased.

In 2009, for the third year in a row, qantas.com was named Australia’s Number One Website in the ‘Aviation – Commercial Airlines’ and ‘Travel – Transport’ categories by Hitwise.

qantas.com and online channels

Qantas Freight achieved its highest ever customer satisfaction rating.

the qAntAs GRoup 38

Qantas Aviation Services provides below the wing support services to Qantas Airlines, including ground handling, ground support equipment maintenance and aircraft cleaning services throughout Australia.

The Qantas Group holds a 58 per cent share in Jetset Travelworld Group (JTG).

Thebusiness’largestoperatingcompanyisQantasDefenceServices(QDS)–rankedAustralia’sbestlargedefencecontractorintheDefenceMaterielOrganisation’sIndustryScorecardforthepasttwoyears.

QDSworkscloselywiththeRoyalAustralianAirForce(RAAF)acrossseveralprogramsandaircraftfleets,providingdeepmaintenance,logisticssupportandenginesupport.

Akeyachievementin2009/2010wassecuringa$136million,three-yearextensiontoourmaintenanceandsupportcontractfortheRAAF’sC130HHerculesfleet.

QDSisalsoperformingA330tankerconversionsforAirbusMilitaryandhasbeenawardedthecontractforthrough-lifesupportofthetankersoncetheyenterservicewiththeRAAF.

JTG,anintegratedtravelbusiness,provideswholesale,retailandspecialistbusinesstravelproductsandservicesacrossAustralia,andincludestheQantasHolidaysandQantasBusinessTravelbrands.In2009/2010wegaveoursupporttoaproposaltomergeJTGandStellaTravelServices.

Ifapprovedbyshareholdersandregulatoryauthorities,themergerwillcreateamorecompetitivebusiness,betterabletostrengthenbrandingandonlinecontent,identifycostandrevenuesynergiesandinvestinmarketdevelopment.

Qantas Aviation Services

Jetset Travelworld Group

Our tankerconversion project

Agroupof170specialistQantasengineersisconvertingfourA330-200stoMultiRoleTankerTransport(MRTT)aircraftwithair-to-airrefuellingcapability,onbehalfoftheEuropeanAeronauticsandDefenceSpaceCompany(EADS)fortheRoyalAustralianAirForce.ThisrefinedengineeringcapabilityisuniquetoQantasintheAsia-Pacificregion.


Our approachOurgoalistodeliveragreatplacetowork,providetraininganddevelopmentforourpeople,andharnesstheirpassionandadvocacyinsupportofourbrands.

Ourworkforceisextraordinarilydiverse,withrolesrangingfrompilotstocabincrew,professionalandtechnicalengineerstoaviationinformationanalysts,fuelhedgingspecialiststometeorologists,andwithareassuchasbaggageandcateringthatemployAustraliansrightacrossthecountry.

AfocusinrecentyearshasbeentoincreasethenumberofIndigenousAustraliansinourworkforce.ByJune2010wehad300IndigenousemployeeswithintheQantasGroup.

QantasistheleadingaviationtrainerinAustraliaandamongthemostrespectedintheworld.Weprovideextensivein-housetrainingandworkcloselywithleadingeducationandtraininginstitutions:—Our2,282Qantasmainlinepilots

domorethan33,000hoursofannualtraininginourstate-of-the-artaircraftsimulators

—Wehave385QantasandQantasLinkengineeringapprentices

—Approximately19,000employeeshaveundertakenoureXceptionalservicetraininginourpurpose-builtCentreofServiceExcellencesinceDecember2008

—TheQantasGraduateprogramhastakenin102recruitsoverthepastthreeyearsandtheirtrainingwillprovidethenextgenerationofaviationexecutives

TheQantasGrouphasdevelopedaPeopleStrategicPlanthatalignstobroadGroupstrategyandisfocusedon:—Buildingastrongculturethatengages

ouremployeesandisconducivetolastingchange

—Developingleadershipcapabilityacrossalllevelsoftheorganisation

—Supportingourdiverseandageingworkforce

Strengtheningengagementwithourpeopleremainsafocus.Akeyinitiativehasbeentobringtogetherregularly100ofthemostseniorleadersfromacrosstheGrouptoensurealignmentofstrategyandpurpose.Overthepast12months,thisapproachhasbeenbroadenedwiththestagingofsimilarforumsinvolving500influentialleadersfromacrosstheGroup.

Developingleadershipcapabilityatalllevelsdemandsanupdatedapproachtomanagingperformance.Weareinvestinginthedevelopmentofleadership,feedbackandcoachingskillsforallourmanagers.Theaimistogiveallleaders,managersandfront-linesupervisorsacommonapproachtomanagingpeopleatQantasandtobringoutthebestineveryone.

35,700 people250 unique roles55 languages92 nationalities

The Qantas Group employs 35,700 people across 250 unique roles, with 93 per cent of them based in Australia. We are a first-class employer and the leading aviation trainer in the country.


ABoardCommittee–theSafety,Health,EnvironmentandSecurityCommittee–overseesGroup-widehealthpolicies,reflectingtheirimportancetoourcustomersandpeople.

For employees at Qantas, key benefits and well-being initiatives include:—12weeks’paidmaternityleave

(includingadoption)anduptotwoyears’unpaidparentalleavefortheprimarycare-giver,consistentwithAustralianbestpractice

—Oneweek’spaidpaternityleave(includingadoption)

—Upto15days’paidpersonal/carer’sleaveperyear

—Accesstoaffordable,highquality,award-winningemployer-sponsoredchildcarecentresinMelbourne,SydneyandBrisbane

—Salarysacrificeprograms(suchassuperannuationandmotorvehicles)

—AHealthandWellbeingProgramthatincludesWeightWatchersatWorkandon-sitegroupexerciseclasses.Over1,300employeesparticipatedintheGlobalCorporateChallengewalkingeventin2010

—OurEmployeeAssistanceProgram,aself-referralcounsellingprogram

—Opportunitiesforreducedairfares—Afullysubsidisedfluvaccination

programforouremployees—Alcoholandotherdrugsprograms

includingrandomtestingandreferralservices

—Fatiguemanagementmeasureswhichincludecomprehensivepolicies,practicesandprocedures

Women in the Qantas Group —Womencomprise41.7percent

ofourtotalworkforce(upfrom40.4percentin2005)

—22.6percentofwomenemployeesoccupyseniorroles

—Retentionrateforwomenreturningfrommaternityleavewas97percentand100percentforfemalepilots

—Womenrepresented75percentofthetotal2010Graduateintake(comparedto43percentin2009)

With an ageing workforce, and intense competition for talent, it is important to provide safe, healthy workplaces and to encourage healthy living.

the qAntAs GRoup 42

WehaveactivatedtheSATforcrisiseventsincludingtheBalibombingsinOctober2002andOctober2005,theBoxingDay2004Asiantsunami,CycloneLarryinApril2005,andinsituationswhereturbulencehascausedinjuriestocustomersoremployees.SATmembersmayberequiredtoarrangemedicalcareandcounselling,repatriationandescorting,andhotelandhospitalvisits.

Volunteerscomefromeveryleveloftheorganisation,includingseniormanagement,andabroadrangeofculturalandreligiousbackgrounds.Oftenworkingundergreatpressure,withtighttimeconstraints,andoutoftheirnormalworkingenvironment,thesevolunteersarethekeypointofcontactbetweentheQantasGroupandpeopleaffectedbya

crisis,includingourcustomers,crew,peopleontheground,andfamilies.

Membersundergotwodaysofinitialtraining,withcoursecontentresearchedfromotherairlinesandindustrystandards.Thisissupplementedannuallywithrefreshertraining.

TheSATwasactivatedin2009/2010duringthevolcanicashincident.JamesKassimatiswasoneofthosedeployedtoBangkoktoassistaverysmallteamcareforseveralhundredstrandedcustomers.

“Tosaytheexperiencewasamazingwouldbeanunderstatement,”saysJames.“AsaSpecialAssistanceTeammemberinadeployment,youarethefaceofQantas.Fromacustomer’sperspective,youareQantas...Families,thesick,theelderly,thelonely,theangry,

theyou-name-it,allcometogetherandbytheendoftheadventureyouknowthemallbyfirstnameandtheirstory.Ihaveneverbeforereceivedastandingovation,consoledcryingstrangersandbeenhuggedandkissedbycustomers...”

ForJamesandotherSATmembers,deploymentduringacrisissituationmeanslongworkinghoursandstressfulconditions.

“SAT is truly the most rewarding challenge I have ever experienced at Qantas. The skills and experience will be an incredible asset for the rest of my career.”

A spirit of service

The Qantas Special Assistance Team, known as SAT, comprises approximately 900 volunteer employees from the Qantas Group around the world who give their time, skills and compassion to help us provide humanitarian care during a crisis.

JAmes kAssimAtis


Superior infrastructure is fundamental to Qantas Group operations.

We have a fleet of 254 aircraft and an ambitious fleet renewal program. Our engineering and maintenance capabilities ensure safe, reliable performance. Our global network of 14 international lounges includes our inspirational First Lounges, while at home we are the only airline to offer multi-tiered domestic lounges.

Fleet renewal is essential to aviation success. Investing in new aircraft drives improvements in safety, passenger comfort, cost, fuel efficiency, noise, emissions, freight capacity and range capability.

Fleet

TheQantasGroupretainssubstantialflexibilityinitsfleetorderbookbyhavingamixofownedaircraftandleases,andaprogressiveorderstreamthatenablesbothdeferralsandadvancements.

At30June2010,theQantasGroup,includingJetstarAsia,operatedafleetof250passengeraircraftplusfourdedicatedfreighteraircraftwithacombinedaverageageoflessthan10years.TheGroupwet-leasedthreeBoeing747-400sandoneB767-200freighteraircraft.

Morethan150newaircraftareplannedfordeliveryoverthecomingeightyears.Thisrepresentsmorethanonenewaircraftpermonthandwillenabletheretirementofupto65olderaircraftwithsomeaircrafttypes(B767-300andB737-400)tobeprogressivelyphasedout.

TheAirbusA380andtheB787DreamlinerarecentraltotheQantasGroup’swide-bodyfleetstrategy.QantaswasthefirstairlinetosignonfortheA380andisthesecondlargestairlinecustomerfortheB787.

TheA380isreplacingB747sonthematuredenseroutesofLondonandLosAngeles,andthefleetwillgrowto20overthenextfiveyears.

TheB787willbeidealforpoint-to-pointflyingonmediumdensityroutes,bothshort-haulandlong-haul;facilitatingJetstar’sgrowthintoEuropeandinAsia;operatingQantasservicesintoAsia;potentiallyoperatinghightrafficroutesontheQantasdomesticnetwork;andprovidingfortheretirementofQantas’B767fleet.

Thefirmaircraftorderdeliverystreamstandsat50withthefirstB787duetoarriveinmid-2012.Thefirst15B787swillbeusedbyJetstarforitsinternationaloperations,allowingJetstarA330stobetransferredtoQantasforuseonhigh-densitydomesticroutes.

ThecornerstoneofQantasLink’sfleetrenewalisthe72-seatturbopropBombardierQ400,withQantasLinknowoperating21Q400s.

Qantas Group Aircrafton order at 30 June 2010

Type No.

A380-800 14

A330-200 5

B787-8 15

B787-9 35

B737-800 28

A320Family 54

Q400 7

TOTAL 158


The B787 will deliver considerable environmental and economic benefits. ItwillbeabletoflyalongerrangecomparedtoA330s,andthereforemorepoint-to-pointservices,withouttheneedtooperateviahubs,akeyadvantageforQantasandJetstaras‘endoftheline’carriers.

Itwillalsoofferanimprovedcustomerexperienceincludinglargerwindows,higherhumidityandalowercabinaltitudepressure.

TheB787-8canseatapproximately300passengers,whiletheB787-9seatsapproximately350passengers.

Followingthelaunchoftheprogramin2004,thefirstsuccessfultestflightfortheB787-8occurredinDecember2009(withRollsRoyceengines),markingthebeginningofatestflightprogramthatwillseesixB787aircraftflyingaroundtheclockandaroundtheworld.Thefifthtestaircraft,fittedwithGeneralElectricengines(theenginetypeorderedby

QantasandJetstar),haditsfirstsuccessfultestflightinJune2010.CertificationFlightTestingandFederalAviationAdministrationapprovaloftheB787typedesignisexpectedtooccurinNovember2010withthefirstdeliveriestocustomerstooccurbyearly2011,andtheQantasGroupreceivingthefirstofour50B787sinmid-2012.

Next generationflying – B787

the qAntAs GRoup 46

Engineering makes a major contribution to the Qantas reputation for safety, reliability and performance.

Withcloseto6,000peopleemployedand385apprentices,engineeringinQantasisacomplexbusiness,requiringveryhighlevelsofskillandtraining,scrupulousqualityassurancestandards,excellenceinsupplychainprocesses,projectdeliveryskills,andpeoplemanagement.SophisticatedengineeringfacilitiesinAvalon,Brisbane,Melbourne,Adelaide,LosAngeles,TamworthandSydneycarryoutaircraftmaintenance,modifications,refurbishment,andengineandcomponentrepairandoverhaul.

In2010QantasLinkcommencedheavymaintenanceonitsfleetof21BombardierQ400turbopropaircraftattheupgradedTamworthmaintenancefacility.Additionally,majorlinestationsconductaircraftturnaroundandminormaintenanceincentresincludingCairns,Darwin,CanberraandPerth.

Morethan80percentofallQantasaircraftmaintenanceiscarriedoutinAustralia.Inearly2010QantascommencedheavymaintenanceonitsA330fleetofaircraftinBrisbane,securinghundredsofjobsacrossarangeofengineeringandmaintenanceroles.

Engineering

People: 5,877Sites: Seven (Avalon, Brisbane, Melbourne, Adelaide, Los Angeles, Tamworth, Sydney) Facilities: 282,000m2

the qAntAs GRoup 48

Qantas Catering comprises the premium airline catering business Q Catering and meal component manufacturer Snap Fresh. In 2009/2010 Qantas Catering prepared 35 million meals and spent over $240 million on catering supplies.

QCateringisaworld-leadingdomesticandinternationalflightcateringservice,thebiggestofitskindinthesouthernhemisphereandthefirsttohaveeachofitssevenproductioncentresaccreditedtointernationalfoodsafetymanagementstandards.

WorkingwithQantasconsultingchefNeilPerry,QCateringdeliversdeliciousinflightcuisinetopremiumQantascustomersandmealstootherairlines.

SnapFreshisastate-of-the-artmealproductionfacilityforairlineandnon-airlinecustomers,includingthehealthcareanddefencesectors.

People: 2,800Sites: Six (Adelaide, Brisbane, Cairns, Melbourne, Perth, Sydney)Meals: 35 million Facilities: 75,000m2

Catering


Superior airport infrastructure and continuing investment in high quality terminals and lounges support our goal of a seamless and enjoyable journey for customers.

AirportinvestmentiscrucialtosupporttheintroductionoftheA380andplannedintroductionoftheB787,theexpansionoftheA330andB737-800fleetsondomesticroutesandforecastgrowthinpassengers.ThisyearQantasfinalisedits$75millionPerthterminalredevelopment,includinglounges,andalsocompleteditsseamlesstransferfacilitybetweenSydneyinternationalanddomesticterminals.

FromSydneytoKarratha,fromLauncestontoTownsville,nootherairlineintheworldoffersthelevelofmulti-tieredloungefacilitiesprovidedbyQantasforourdomesticcustomers.Wehave14stylishQantasinternationallounges,withourMarcNewsonFirstLoungeswinninginternationalawardsandcustomeracclaim,plusafurthereightlounges

sharedwithinternationalairlinepartners.Investmentinourglobalanddomesticloungenetworkcontinueswithmorethan$40millionincurrentandprojectedexpenditure.

MajordomesticprojectscompletedoverthecourseoftheyearincludenewregionalloungesinKalgoorlieandCoffsHarbour,theCairnsQantasClub,theChairmansLoungeandQantasClubinPerthandloungeupdatesintheSydneyT2andHobartQantasClubs.Majorprojectsunderwayincludeour$18millionCanberraterminalwithanewMarcNewsonChairmansLounge,BusinessLoungeandQantasClub,newEmeraldandLauncestonregionallounges,andanupdatetotheDevonportregionallounge.

Internationally,thisyearwecompletedanewHongKongBusinessLoungeandupdatedtheHongKongFirstLoungeandtheHonoluluBusinessLounge.WorkunderwayincludesarefreshoftheSingaporeFirstLounge,andupdatesoftheWellingtonandSydneyBusinessLounges.OurfutureplansincludeMarcNewsonFirstLoungesinLosAngeles,SingaporeandHongKongwhichwillconsolidateoursuperiorFirstoffering.

Airports

Domestic

Lounge Type No. Locations

Chairmans 6 Adelaide,Brisbane,Canberra,Perth,Melbourne,Sydney

Business 4 Brisbane,Canberra,Melbourne,Sydney

QantasClub 12 Adelaide,Cairns,Brisbane,AliceSprings,Canberra,Darwin,Hobart,Perth,Melbourne,SydneyT3,SydneyT2,Townsville

Regional 9 Broome,CoffsHarbour,Devonport,Kalgoorlie,Karratha,Launceston,Mackay,PortHedland,Rockhampton

International

Lounge Type No. Locations

InAustralia—First

3 Sydney,Melbourne,Brisbane

InAustralia—Business

4 Brisbane,Perth,Melbourne,Sydney

OutsideAustralia—First

2 Auckland,HongKong

OutsideAustralia—Business

5 HongKong,Honolulu,Tokyo,Wellington,Auckland

OutsideAustralia—Jointlounges(FirstandBusiness)

8 Bangkok(First,Business),LosAngeles,TomBradleyterminal(First,Business),LosAngeles,T4terminal(First,Business),Singapore(First,Business)

the qAntAs GRoup 50


Excellenceincustomercareembraceseveryaspectofthecustomerexperiencefrombookingtoboarding,frominflighttobaggagecollection.

Sowearelisteningtoourcustomersmorecarefullythanever;engagingourpeopleandequippingthemtodeliverconsistentlyexcellentservice;andinvestingingreatfleet,loungesandproduct.

Qantashastraditionallyuseddetailedandregularcustomersatisfactionsurveystomeasureourperformanceincustomercare:—AtMay2010weequalledourhighest

evermonthlycustomersatisfactionrating—Overthepast12monthsinternational

customersreportedthattheyweresignificantlymoresatisfiedwiththegroundexperience,particularlycheck-in,boarding,loungesandpunctuality

—TheAirbusA380cabinenvironmentanditsseatscontinuedtoattractstrongcustomersatisfactionresultsacrossallcabins,particularlyinFirstClass.OurSydneyandMelbourneFirstLoungescontinuedtorateat95percent-pluslevels

—Amongdomesticbusinesstravellersoverallsatisfactiontrendedupwardsoverthe12months,drivenstronglybyon-timeperformancewhichwasthebestforadomesticAustralianairline

NowQantasismovingtoaddamoreambitiousmeasureofcustomersatisfaction,theNetPromoterScore.OurgoalovertimeistoconvertmoreofoursatisfiedcustomersintoactivepromotersofQantasandtherebystrengthenourshareoftheirbusiness,aswellasattractandkeepnewcustomers.Weknowfromourresearchthatserviceisthebiggestdriverofthiskindofadvocacy.

Our long-term strategy involves: —Investinginbreakthroughinitiatives,

suchasNextGenerationCheck-in,thatwilldeliverthebiggestreturnsintermsofcustomersatisfactionandadvocacy

—HarnessingthepowerofourFrequentFlyerprogramtobuildenduringandvaluedrelationships

—Strengtheningthemorale,engagementandskillsofourQantaspeople

—Greaterinputbyourfront-linestaffinfollowingupthecomplaintsorcomplimentsofourcustomers

Our customers are at the centre of all that we do.

More than ever, we are investing in understanding what our customers want and delivering more than they could imagine. Qantas is redefining the modern premium airline brand and, with our Next Generation Check-in, streamlining and simplifying the airport experience.

Inflight healthOurcustomers’safetyandwell-being,bothpre-flightandinflight,areveryimportanttous.Weresearchandreviewenvironmentalconditionsonboardtoensuremaximumpassengercomfort.

Weprovide:—AMeetandAssistserviceto

passengerswithspecialneeds—Mobilityassistance,including

servicesforthevisionandhearingimpaired

—Provisionforservicedogs—Medicalrepatriation,

accommodatingstretchers,medicalescortsandspecialequipmentrequirements

—Onlineinformationonmedicalconditionsandapplicableclearancesthatmayberequired

QantascrewaretrainedtoprovidemedicalassistanceandbothQantasandJetstaraircrafthavesatellitelinkstophysiciansshouldspecialistadvicebeneeded.


Listening to our customers, one message that came through loud and clear was that domestic check-in was a point of pain. The queues were too long, the hassle too big. Our customers wanted speed and they wanted ease. And that’s what we are delivering with Next Generation Check-in.

Next Generation Check-in

Who:Allcustomerswithaweb-enabledmobiledevice.What:Customerscancheckinforadomesticflightonqantas.comwiththeirdevicebetween24hoursand45minutespriortodeparture.How:Customersfollowafewsimplestepstocompletecheck-in,witha2Dbarcodesenttotheirdevice.Thebarcodeisscannedatthegatewhereaboardingreceiptisprintedwithkeycustomerandflightinformationforuseonboard.

Mobile Check-in

Who:Allcustomers.What:Availablebetween24hoursandonehourpriortodeparture,self-servicecheck-infordomesticflightsavailableviaManageYourBookingonqantas.comHow:Customerswithinternetaccesscancheckinfromhomeortheoffice,selectandchangetheirseatsandprinta2Dbarcodeboardingpassforuseattheboardinggate.

Who:ChairmansLoungemembers,Platinum,GoldandSilverFrequentFlyers.What:Keyautomationplatformprovidingcustomerswithcontrolovertheirseatingpriortoarrivalattheairport.How:Customerschoose/changetheirseatsviaManageYourBookingonqantas.comuptothreehourspriortodeparture.

Online Check-inAdvance Seat Selection

the qAntAs GRoup 54

Who:Customersrequiringassistancewithsimpleissues.What: Fullagentworkstationconvenientlylocatedincloseproximitytokiosks.How:CustomerServiceAgentscanaccessphoneandcomputerfunctionstoresolvesimpletransactionerrorsforcustomers.

Kiosk Service Point

Who:PrimarilyforBronzeandnonFrequentFlyers,butavailabletoallcustomers.What:Functionalityenablingcustomerstocheck-in,selectseats,printbaggagetags,completeexcessbaggagepaymentsbycreditcardorcarryoutchangesandupdates.ThekioskswillbelocatedinclusterformationanchoredbyaKioskServicePoint.Scalesareavailabletoencouragecustomerstovalidatebagweightpriortocheckingin.How:Enhancedfunctionalityandinteractivescreensstepcustomersthroughthecheck-inandbaggageprocesses.FastPathfunctionalityprovidesshortcutsforkeyprocessespostcheck-insuchasseatchangesandaddingFrequentFlyerdetails.CustomerServiceAgentsprovideassistance.

Kiosks

Who:ChairmansLoungemembers,Platinum,GoldandSilverFrequentFlyersandQantasClubmembers.What:AnewQantasFrequentFlyerCardwithsmartchip(RFID)technologyandasimplereaderdesignthatsupportsafasttransaction,enablingpremiumcustomerstobeautomaticallycheckedin.ThenewFrequentFlyerCardisthenusedattheboardinggatewithcustomersreceivingaboardingreceipt.How:CustomerstouchtheirnewFrequentFlyerCardonQCardReaderslocatedthroughouttheterminaltobeautomaticallycheckedin.AvisualindicationontheReaderandasoundconfirmcheck-in.AnSMSconfirmationofcheck-in/flightdetailsfollows.ChangestobookingsoradditionalprocessingmustbeactionedatkiosksorServiceDesks.

Automatic Check-in


Who:ChairmansLoungemembers,Platinum,GoldandSilverFrequentFlyers,QantasClubmembersandcustomerstravellinginBusiness.What:Adedicatedface-to-facefullserviceoption.Functionsincludecheck-in,changestoitinerary,problemresolutionanddomestictointernationalcheck-in.How:Premiumcustomerspreferringtocheck-inordroptheirbagsataServiceDeskorspeakwithaCustomerServiceAgentwillcontinuetohaveaccesstothisservice.

Premium Service Desk

Who:ChairmansLoungemembers,Platinum,GoldandSilverFrequentFlyers.IntimeBronzeFrequentFlyerswillbeabletopurchasetags.What:AphysicalelectronicbagtaglinkedtotheQantasFrequentFlyerCardandusedtocheckinbaggage.Keycustomerandflightinformationisrecordedonthetag’ssmartchipenablingsecurereconciliation.How:QBagTagsareattachedtocheckedbaggage,enablingcustomerstogodirectlytoaBagDropwithoutneedingtoaccessakiosktoprintandtagbags.

Q Bag Tag

Who:Allcustomerstravellingwithbags.What:AnautomatedBagDropsupportedbyCustomerServiceAgents.How:Oncecheckedin,customersplacetheirtaggedbagsontheinjectorsandfollowasetofsimplestepsprovidedontheinjectorscreens.Asimplereconciliationprocessmatchesboardingpassandbagtagdatatothebookingandensuressecureacceptanceofbagsintothebaggagehandlingsystem.Theinjectorsrecognisebagsizeandweighttodetermineiftheyarewithincustomerentitlements.

Bag Drop

Ourpioneeringspirithasalwaysbeenpartofwhoweareandwherewecomefrom.Ithashelpedourairlinetoconstantlysetnewbenchmarksforotherstofollow.

ThelaunchofdomesticNextGenerationCheck-inispartofaneweraofinnovation.It’sanambitiousproject,involvingworld-firsttechnology.

Itwillre-engineerhowourproductsandservicesaredeliveredtoourcustomers.Anditwillchangethecustomerexperience,enablingouremployeestofocuslessonprocessandmoreoncustomercare.

Next Generation Check-in

the qAntAs GRoup 56

Who:Allcustomers.What:Seamlessboardingprocessregardlessoftheboardingpasstypepresented–chip-enabledFrequentFlyerCard,mobileorpaperboardingpass(online,kioskorServiceDesk).Who: ChairmansLoungemembers,PlatinumFrequentFlyersandcustomerstravellinginBusiness.What:Priorityaccessatanytimeduringtheboardingprocess.

Enhanced boarding

Who:BronzeFrequentFlyersandallothernonFrequentFlyers.What:AresolutionservicepointforcustomerissuesthatcannotberesolvedatakioskorKioskServicePoint,andforcustomerswhorequireassistancefromtheBagDropandoversizedbaggageareas.How:CustomersaredirectedtotheServiceDeskforfurtherassistanceincludingfacilitatingpassportandvisachecksfordomestictointernationalcheck-in.

Who:ChairmansLoungemembers,PlatinumandGoldFrequentFlyersandcustomerstravellinginBusiness.What:Customershaveaccesstoapriorityscreeninglane,locatedinproximitytoloungeentryidentifiedbysignageandsupportedbyaCustomerServiceAgent.

Service Desk Premium security


Environmental sustainability is a commercial and social imperative for the Qantas Group.

We have a comprehensive environmental strategy focused on operational efficiency, industry advocacy and research, and engagement with our customers, employees and community organisations.

Fuel conservationFuelconservationiskeytoouroverallenvironmentalstrategy.Ninety-fivepercentoftheQantasGroup’sgreenhousegasemissionsareattributabletofueluse,oneofourlargestcostdrivers.Usingfuelmoreefficientlymeanswecanbettermanagethesecosts,absorbfluctuationsinoilpricesandreduceourcarbonfootprint.

Fleetrenewalisthefoundationforourfuelconservationprogram.WeareinvestingUS$22billioninhighlyfuel-efficientnextgenerationaircraft(atlistprices),suchastheAirbusA380andBoeing787.TheQantasGrouphassixA380sinservice,withafurther14tocome,and50B787sonorder.

Thisinvestmentinourfleetiscomplementedbyarangeoffuelconservationactivitiesintheairandontheground,suchasaircraftweightreduction,betterschedulingandpunctuality,enhancedflightplanningandnavigation,reducedrelianceonAuxiliaryPowerUnits,newtechnologiesandimprovedtechnicalperformance.

Inearly2010wereachedakeymilestone:savingonemilliontonnesofcarbondioxideequivalent(CO2-e)throughfuelconservationactivitiessince2005.

Overthelongerterm,wearecommittedtoastringentfuelefficiencytargetofanaverageof1.5percentimprovementperannumby2020,inlinewiththeglobalindustrygoalsestablishedbytheInternationalAirTransportAssociation(IATA).

Sustainable aviation fuel TheQantasGroupiscommittedtosupportingresearchinto,andthedevelopmentof,sustainablealternativestotraditionalaviationfuels.

During2009/2010theQantasGrouptooktwoimportantsteps:—JoinedtheSustainableAviationFuel

UsersGroup(SAFUG),aglobalgroupofleadingairlinesandaviationcompaniesworkingtogetherwithscientificagenciesandenvironmentalorganisationstodevelopcleanerjetfuels

—Launcheda‘Roadmap’studyinconjunctionwiththeAustralianandNewZealandgroupofSAFUGandtheCommonwealthScientificandIndustrialResearchOrganisation(CSIRO)toidentifyandsuggesthowtoaddressbarrierstoacommerciallysustainableaviationfuelsindustry

Focus on fuel


During 2009/2010 we launched Australia’s first domestic inflight recycling program and commissioned the installation of a tri-generation energy facility in Sydney that could reduce our electricity use significantly.

Carbon readinessCarboncomplianceregimesareinplaceorplannedinanumberofkeymarketswheretheQantasGroupoperates.TheNewZealandEmissionsTradingScheme(ETS)commencedon1July2010andappliestoJetstar’sdomesticoperations.ThisisthefirstmandatoryETStoincludeaviation.TheEuropeanUnionETSwillalsoincludeaviationfromJanuary2012.Todate,wehavemetallourobligationsinthesejurisdictions.

InOctober2009wesubmittedourfirstmandatorycarbonfootprintreportundertheAustralianGovernment’sNationalGreenhouseandEnergyReporting(NGER)Act,reporting4.2milliontonnesofCO2-eforactivitiesandentitiesundertheQantasGroup’soperationalcontrolfor2008/2009.

TheQantasGroupwillcontinuetoembedthecostofcarbonintoreportingsystemsandlong-termbusinessplanning.

Carbon offsetting QantasandJetstar’svoluntarycarbonoffsetprogramwasestablishedtoenablecustomerstooffsettheirportionoftheemissionsgeneratedbytheirflights,andfortheQantasGrouptooffsetstaffdutytravelandgroundvehicleuse.—Passengersoffset240,000tonnes

ofcarbonduring2009/2010—Between7.5and9percentofcustomers

bookingthroughtheQantasandJetstarwebsiteschoosetooffset

—66,436tonnesofcarbonfordutytravelandgroundvehicleusewereoffsetin2009/2010

—Morethan772,000tonnesofcarbonhavebeenoffsetsince2007

WiththeAustralianGovernment’sGreenhouseFriendlyschemecomingtoanendinJune2010,theQantasGrouphasmovedtocomplyfullywiththereplacementscheme,theNationalCarbonOffsetStandard(NCOS).

Reducing resource consumption

Target area Targeted improvement by 30 June 2011 (%)

Progress against baseline of 2006/2007 (%)

Reduceelectricityconsumption 10 4.6

Reducewaterconsumption 25 17.7

Reducewasteconsumption 25 10.9

Positive environmental action

the qAntAs GRoup 60

Qantas’internalenvironmentprogram,begreen,encouragesemployeestochampionsustainableworkpracticesbyjoiningthestaffGreenTeamnetwork(whichincludesemployeesatalllevelsandinallareasofthebusiness).OureXcelawardsprogramrecognisessustainabilityleadershipatwork,whileemployeescontributetoanumberofcommunityenvironmentalinitiatives.

WealsosupportimportantenvironmentalorganisationsandprojectsthroughtheQantasFoundation,theQantasAwardforExcellenceinSustainableTourismandotherforums.

OurworkinpartnershipwiththeGreatBarrierReefFoundation(GBRF)isagoodexampleofthiscommitmentinaction.TheQantasFoundationisapatronofGBRF’sZooXFund,whichprovidesa

channelforindividualsandbusinessestosupporthigh-priorityresearchprojectsidentifiedbyitsInternationalScientificAdvisoryCommittee.ZooXisfocusedonprojectsthatwillincreaseGBRF’sknowledgeabouttheimpactsofclimatechangeontheReefandinformstrategiesforitspreservationandprotection.

QantasalsoparticipatesintheZooXAmbassadorsprogram–whereemployeestakepartinaneducationalprogramandfieldtriptotheReef,andusetheknowledgetheygaintoimplementenvironmentalimprovementinitiativesintheirworkplace.

InJune2010Qantasannounceditssupportforanimportantclimatechangeresearchproject,inassociationwiththeGBRFandtheCSIRO.‘SealsfortheReef’involvessafelyattachingsensorsto

elephantsealsintheSouthernOceantotrackchangingwaterconditions.TheinformationgatheredwillbeanalysedbyresearchersfromCSIROandtheUniversityofTasmania,providingbothaninvaluableguidetotheseals’behaviourandavital‘earlywarningsystem’forthepotentialimpactsofincreasedwatertemperatureandsalinityontheGreatBarrierReef.

Engaging our people and working with communities


Good corporate citizenship is part of our role and responsibility as the national carrier.

The Qantas Group works in partnership with the Australian community to promote excellence, provide opportunities, protect the environment and help those affected by adversity.

TheQantasFoundation,establishedasacharitabletrustin2008,isfocusedonmakingadifferencetocommunitiesatagrassrootslevelthroughcharitabledonationsandassistanceinkind.Itworksintheareasofhealth,communityandeducation,theenvironment,artsandhumanitarianrelief.

GrantsaremanagedbytheQantasFoundationTrusteeBoardanddistributedthroughfourfunds:—ArtEncouragementFund—EnvironmentalSustainabilityFund—HumanitarianFund—GeneralFundforothercharitable

purposesSignificantinitiativesundertakenbytheFoundationinclude:—Donating$100,000worthofairfares

toenabletheRoyalFlyingDoctorService(RFDS)togeneratefundraisingrevenueforthepurchaseofvitalmedicalequipmentandsupportkeyRFDSinitiatives,aswellastransportRFDSstaffanddonors.QantasstaffalsoshowedtheirsupportfortheRFDSbyvolunteeringatthe2010RFDSSouthEastSectionOpenDayinMay2010

—FormingapartnershipwithMissionAustraliaanditssocialenterpriserestaurant,CharcoalLane,whichprovidestraining,lifeskillsandpathwaysintothehospitalityindustryfordisadvantagedyoungpeople.TheFoundationhassponsoredsixstudentswithadonationof$57,000

—LaunchingaspecialcampaignencouragingQantasstafftodonatetotheFoundationinsupportofTheFredHollowsFoundation’sworkwithAustraliansinremoteIndigenouscommunitieslivingwithcataractblindness,trachomaandothertreatableeyeconditions.WithamatchingdonationfromtheQantasGroup,theFoundationdonatedatotalof$50,000

—TogetherwiththeAustralianRugbyUnion(ARU)andFootballFederationAustralia(FFA),donating$50,000tosupportUNICEF’sreliefeffortsfollowingthenaturaldisastersinSamoa,TongaandIndonesiainlate2009

AmongtheothergroupstheFoundationsupportedduring2009/2010weretheAustralianBusinessandCommunityNetwork,theCentreforSocialImpact,theCentreforSustainabilityLeadership,CleanUpAustraliaDay(asOfficialFoundationPartner),FloraandFaunaInternationalAustralia,theGreatBarrierReefFoundationandLandcareAustralia.

TheQantasFoundationcomplementsQantas’broadersponsorshipandpartnershipwork,whichincludessupportfortheAustralianoftheYearAwards,CAREAustralia,theInternationalDayofPeoplewithaDisability,theNationalAustraliaDayCouncil,theNationalBreastCancerFoundation,RedDustRoleModels,theRoyalInstituteforDeafandBlindChildrenandUNICEF.In2009/2010Qantasraisedover$1.8millionforUNICEF’sChangeforGoodprogram.

Qantas Foundation


WealsocontinuedourcloserelationshipwiththeAustralianFootballLeague(AFL),asofficialairlineandMajorPartneroftheLeague’sIndigenousprograms,andtheARU,asnamingsponsoroftheQantasWallabies.DuringtheAFL’sofficialIndigenousRound,wemadea$50donationtotheLongWalkTrustforeverygoalkicked.

Inthearts,wearecommittedtohelpingidentifyandnurtureyoungAustraliantalent.TheQantasFoundationEncouragementofContemporaryArtAwardrecognisesartistsineachstateandterritory–theonlysuchawardtodosobasedonabodyofwork,ratherthanasinglepiece.Wesponsororganisations,venuesandeventsdedicated

toshowcasingthebestofinternationalandAustralianculture,fromdanceandtheatretoIndigenousart.

AsaGoldSponsoroftheAustralianPavilionattheShanghaiWorldExpo,wewereactiveinpromotingAustraliancultureandbusinessinoneofAustralia’smostimportantmarketsfortrade,investmentandtourism.

In 2009/2010 we put a strong focus on sport, becoming naming rights sponsor of the Formula 1™ Australian Grand Prix for the second time, supporting the Qantas Socceroos at the 2010 FIFA World Cup in South Africa and backing Football Federation Australia’s bid for the 2022 World Cup.

Qantas’ origins are in regional Australia and, through QantasLink operations and other activities, we help stimulate economic growth, job creation and tourism in regional communities.

Examples of this activity include: —InTamworth,QantasLink’sNSW

maintenancebase,weemploy82people,sponsortheCountryMusicAssociationofAustraliaandspentatotalof$5.4millionin2009/2010

—InMildura,weemploy28people,sponsorthelocalChamberofCommercebusinessawardsandtheMilduraWritersFestival,andspent$1.5millionin2009/2010

—InGladstone,weemploy12groundhandlingstaff,sponsortheGladstoneHarbourFestivalandcontributedexpenditureof$4.2millionin2009/2010

Wearekeenlyawareofaviation’ssignificancetothesecommunitiesandothers,andoftheimportanceofgivingbacktothefamiliesandbusinessesthatsupportusacrossthecountry.

Qantas in the Australian community – sharing the spirit

QantasLink – giving back to regional Australia

the qAntAs GRoup 64

TheQantasReconciliationActionPlan(RAP)aimstobuildrelationshipsforchangebetweenAboriginalandTorresStraitIslander(Indigenous)AustraliansandotherAustralians.

Weareproudtohavebeenrecognisedasacorporateleaderinreconciliation,beingnamedBestEstablishedBusinessintheQueenslandGovernment’s2009ReconciliationAwardsforBusiness.

Ourworkinsupportingreconciliationinitiativeswithinourcompanyandwithourcustomersandthecommunityincludes:—FoundingmembershipoftheAustralian

IndigenousMinoritySupplierCouncilandengagingIndigenousbusinessestoprovideservicestoQantas

—ProvidingemploymentandeducationalopportunitiesforIndigenousAustraliansincludingscholarships,school-basedtraineeshipsanduniversitycadetships

—DevelopingpartnershipswhichaimtosupportIndigenousexcellenceinsport,artandculturethroughourworkwithBangarraDanceTheatre,theAFL,theGondwanaNationalIndigenousChildren’sChoirandtheNationalGalleryofVictoria’sIndigenousGalleries

—PromotingsharedprideinIndigenousculturebyscreeningIndigenousdocumentariesandfilmsonourinflightentertainmentandincludingarticlesintheinflightmagazineandotherQantaspublications

—Filmingof“WelcometoCountry”withlocalIndigenouseldersinSydney,DarwinandCairnsfortheQantasinternationalinflightarrivalvideoguides,withothercitiestofollow

—Providinginformationfortravellers(qantas.com/reconciliation)abouttravellingrespectfullyinIndigenousAustraliaandinmakinginformedandethicalchoiceswhenpurchasingIndigenousartandartefacts

“Qantas has been leading the way in developing a broad range of opportunities for both their company and other businesses to contribute to reconciliation. The Qantas RAP demonstrates good practice in many ways, providing a sound model and invaluable lessons for other companies.”CO-CHAIRS OF RECONCILIATION AUSTRALIA: MICK DODSON AM AND MARK LEIBLER AC

Qantas and reconciliation


Board of Directors

LeighCliffordwasappointedtotheQantasBoardinAugust2007andasChairmaninNovember2007.HeisChairmanoftheQantasNominationsCommittee.MrCliffordisaDirectorofBarclaysBankplcandBechtelGroupInc.HeisChairmanofBechtelAustraliaPtyLtdandtheMurdochChildrensResearchInstitute,aSeniorAdvisortoKohlbergKravisRoberts&CoandaBoardMemberoftheNationalGalleryofVictoriaFoundation.MrCliffordwasChiefExecutiveofRioTintofrom2000to2007.HeretiredfromtheBoardofRioTintoin2007afterservingasaDirectorofRioTintoplcandRioTintoLimitedfor13and12yearsrespectively.HisexecutiveandboardcareerwithRioTintospannedsome37years,inAustraliaandoverseas.Age:62

Leigh Clifford, AO

BEng, MEngSciChairman Independent Non-Executive Director

AlanJoycewasappointedChiefExecutiveOfficerandManagingDirectorofQantasinNovember2008andCEODesignateandtotheQantasBoardinJuly2008.HeisaMemberoftheSafety,Health,EnvironmentandSecurityCommittee.MrJoyceisaDirectorofanumberofcontrolledandassociatedentitiesoftheQantasGroup,andaformerDirectorofOrangestarInvestmentHoldingsPteLimitedandJetstarPacificAirlinesAviationJointStockCompany.HewastheCEOofJetstarfrom2003to2008.Beforethat,MrJoycespentover15yearsinleadershippositionsforQantas,AnsettandAerLingus.AtbothQantasandAnsett,heledtheNetworkPlanning,SchedulesPlanningandNetworkStrategyfunctions.Priortothat,MrJoycespenteightyearsatAerLingus,whereheheldrolesinSales,Marketing,IT,NetworkPlanning,OperationsResearch,RevenueManagementandFleetPlanning.Age:44

Alan Joyce

BApplSc(Phy)(Math)(Hon.), MSc(MgtSc), FRAeSChief Executive Officer

GarryHounsellwasappointedtotheQantasBoardinJanuary2005.HeisChairmanoftheAuditCommitteeandaMemberoftheNominationsCommittee.MrHounsellisChairmanofPanAustLimitedandaDirectorofOricaLimited,DuluxGroupLimitedandNufarmLimited.MrHounsellisalsoDeputyChairmanofMitchellCommunicationGroupLimited.HeisChairmanofInvestecGlobalAircraftFund,aDirectorofIngeusLimitedandaBoardMemberoflawfirmFreehills.MrHounsellisaformerSeniorPartnerofErnst&YoungandChiefExecutiveOfficerandCountryManagingPartnerofArthurAndersen.Age:55

Garry Hounsell

BBus(Acc), FCA, CPA, FAICDIndependent Non-Executive Director

PaulRaynerwasappointedtotheQantasBoardinJuly2008.HeisaMemberoftheAuditCommitteeandSafety,Health,EnvironmentandSecurityCommittee.MrRaynerisaDirectorofBoralLimitedandCentricaplc.HealsoservesasChairmanofBoral’sandCentrica’sAuditCommittees.From2002to2008,MrRaynerwasFinanceDirectorofBritishAmericanTobaccoplc,basedinLondon.MrRaynerjoinedRothmansHoldingsLimitedin1991asitsChiefFinancialOfficerandheldotherseniorexecutivepositionswithintheGroup,includingChiefOperatingOfficerofBritishAmericanTobaccoAustralasiaLimitedfrom1999to2001.PreviouslyMrRaynerworkedfor17yearsinvariousfinanceandprojectroleswithGeneralElectric,RankIndustriesandtheEldersIXLGroup.Age:56

Paul Rayner

BEc, MAdmin, FAICDIndependent Non-Executive Director

the qAntAs GRoup 66

PeterCosgrovewasappointedtotheQantasBoardinJuly2005.HeisaMemberoftheSafety,Health,EnvironmentandSecurityCommitteeandaDirectorofQantasSuperannuationLimited.GeneralCosgroveisaDirectorofCardnoLimited,ChairmanoftheSouthAustralianDefenceIndustryAdvisoryBoardandtheAustralianWarMemorialCouncil.GeneralCosgroveservedintheAustralianArmyfrom1965includingcommandoftheinternationalforcesinEastTimorfrom1999untiltheforcewaswithdrawninFebruary2000.HewastheChiefoftheAustralianDefenceForcefromJuly2002untilhisretirementinJuly2005.GeneralCosgrovewasAustralianoftheYearin2001.Age:63

General Peter Cosgrove, AC, MC

FAICDIndependent Non-Executive Director

Patricia Cross

BSc(Hons), FAICDIndependent Non-Executive Director

RichardGoodmansonwasappointedtotheQantasBoardinJune2008.HeisaMemberoftheRemunerationCommitteeandaMemberoftheSafety,Health,EnvironmentandSecurityCommittee.MrGoodmansonisaDirectorofRioTintoplcandRioTintoLimited.From1999to2009hewasExecutiveVicePresidentandChiefOperatingOfficerofE.IduPontdeNemoursandCompany.Previoustothisrole,hewasPresidentandChiefExecutiveOfficerofAmericaWestAirlines.MrGoodmansonwasalsopreviouslySeniorVicePresidentofOperationsforFrito-LayInc.andwasaprincipalatMcKinsey&CompanyInc.Hespent10yearsinheavycivilengineeringprojectmanagement,principallyinSouthEastAsia.MrGoodmansonwasborninAustraliaandisacitizenofbothAustraliaandtheUnitedStates.Age:63

Richard Goodmanson

BEng(Civil), BCom, BEc, MBAIndependent Non-Executive Director

JohnSchubertwasappointedtotheQantasBoardinOctober2000.HeisChairmanoftheSafety,Health,EnvironmentandSecurityCommitteeandaMemberoftheNominationsCommittee.DrSchubertisaDirectorofBHPBillitonLimitedandBHPBillitonplc.HeisalsoChairmanofG2TherapiesLimitedandtheGreatBarrierReefFoundation.HewasmostrecentlyChairmanoftheCommonwealthBankofAustraliaandwasalsopreviouslyChairmanofWorleyParsonsLimitedandPresidentoftheBusinessCouncilofAustralia.DrSchubertwasalsoManagingDirectorandChiefExecutiveOfficerofPioneerInternationalLimitedfrom1993until2000.DrSchubertheldvariouspositionswithEssoinAustraliaandoverseas.In1983,hewasappointedtotheBoardofEssoAustralia.In1985,DrSchubertbecameEsso’sDeputyManagingDirectorandin1988hebecameEsso’sChairmanandManagingDirector.Age:67

Dr John Schubert

BE, PhD, FIEAust, CPEng, FTS, FIChemEIndependent Non-Executive Director

JamesStrongwasappointedtotheQantasBoardinJuly2006.HeisChairmanoftheRemunerationCommitteeandaMemberoftheNominationsCommittee.MrStrongwastheChiefExecutiveOfficerandManagingDirectorofQantasbetween1993and2001,followinghisappointmenttotheBoardin1991.HeisChairmanofWoolworthsLimited,KathmanduHoldingsLimitedandtheAustraliaCouncilfortheArts.HeisalsoamemberoftheNomuraAustraliaAdvisoryBoardandaDirectoroftheAustralianGrandPrixCorporation.MrStrongwasformerlytheChairmanofInsuranceAustraliaGroupLimited,aDirectorofIAGFinance(NewZealand)Limited,theGroupChiefExecutiveoftheDBGroupinNewZealandandNationalChairmanofPartnersofCorrsChambersWestgarth.HewasalsoChiefExecutiveOfficerofAustralianAirlinesfrom1985until1989.Hehasbeenadmittedasabarristerand/orsolicitorinvariousstatejurisdictionsinAustralia.Age:66

James Strong, AO

Independent Non-Executive Director

BarbaraWardwasappointedtotheQantasBoardinJune2008.SheisaMemberoftheSafety,Health,EnvironmentandSecurityCommitteeandtheAuditCommittee.MsWardisChairmanofCountryEnergy,aDirectorofanumberofBrookfieldMultiplexGroupcompaniesandO’ConnellStreetAssociatesPtyLtd,andisontheAdvisoryBoardofLEKConsulting.ShewasformerlyaDirectoroftheCommonwealthBankofAustralia,LionNathanLimited,BrookfieldMultiplexLimited,AllcoFinanceGroupLimited,RecordInvestmentsLimited,DataAdvantageLimited,RailInfrastructureCorporationandDeltaElectricity.ShewasChairmanofNorthPowerandaBoardMemberofAllensArthurRobinson.MsWardwasChiefExecutiveOfficerofAnsettWorldwideAviationServicesfrom1993to1998.Beforethat,MsWardheldvariouspositionsatTNTLimited,includingGeneralManagerFinance,andalsoservedasaSeniorMinisterialAdvisertoTheHonPJKeating.Age:56

Barbara Ward

BEc, MPolEcIndependent Non-Executive Director

PatriciaCrosswasappointedtotheQantasBoardinJanuary2004.SheisaMemberoftheAuditandRemunerationCommittees.MrsCrossisaDirectorofNationalAustraliaBankLimited,JBWerePtyLimited,theMurdochChildrensResearchInstitute,theGrattanInstituteandtheMethodistLadiesCollege.SheisaMemberoftheGovernment’sAustralianFinancialCentreForumandMelbourneUniversity’sAdvisoryCounciltotheFacultyofBusinessandEconomics.MrsCrosswaspreviouslyadirectorofWesfarmersLimited,ChairmanofQantasSuperannuationLimitedandDeputyChairmanofVictoria’sTransportAccidentCommission.Shehasservedonavarietyofpubliclylisted,government,universityandprivatecompanyboards.Priortobecomingaprofessionalcompanydirectorin1996,MrsCrossheldseniorexecutivepositionswithChaseManhattanBank,BanqueNationaledeParisandNationalAustraliaBank.Age:51


2010 2011

18 February Halfyearresultannouncement 17 February Halfyearresultannouncement

30 June Yearend 7 March Recorddateforinterimdividend*

12 August Preliminaryfinalresultannouncement 6 April Interimdividendpayable*

29 October AnnualGeneralMeeting 30 June Yearend

24 August Preliminaryfinalresultannouncement

13 September Recorddateforfinaldividend*

12 October Finaldividendpayable*

28 October AnnualGeneralMeeting

*SubjecttoadividendbeingdeclaredbytheBoard.

2010 ANNUAL GENERAL MEETINGThe2010AGMofQantasAirwaysLimitedwillbeheldat11:00amonFriday29OctoberinAdelaide.FurtherdetailsareavailableontheCorporateGovernancesectionoftheQantaswebsite(atwww.qantas.com)

REGISTERED OFFICEQantasAirwaysLimitedABN16009661901QantasCentreLevel9BuildingA203CowardStreetMascotNSW2020AustraliaTelephone+61296913636Facsimile+61296913339www.qantas.com

QANTAS SHARE REGISTRYLevel12680GeorgeStreetSydneyNSW2000AustraliaorLockedBagA14SydneySouthNSW1235AustraliaFreecall1800177747International+61282807390Facsimile+61292870303Emailregistry@qantas.com

STOCK ExCHANGEAustralianSecuritiesExchange20BridgeStreetSydneyNSW2000Australia

DEPOSITARY FOR AMERICAN DEPOSITARY RECEIPTSTheBankofNewYorkMellonADRDivisionLevel22101BarclayStreetNewYorkNY10286USATelephone+12128152276Facsimile+12125713050

CompanySecretaryCassandraHamlin

AnonlineversionofthisAnnualReviewisavailableatwww.qantas.com

P.65photocredit:JasonCapobianco.CourtesyofBangarraDanceTheatre

P.1photocredit:TimBauer.www.timbauerphoto.com

DesignedbyYello.www.yellobrands.com

Financial Calendar

Cert no. SCS-COC-001360

the qAntAs GRoup 68

1. Captain James Boland senior training captain b7372. Tameka Lee snapfresh team member3. Pete Ashmore flight Dispatch officer4. Kylie-Jane Menzies nsw business Development

manager5. Leissa Geia qantas freight customer

support officer6. Tim Michel international telephone sales7. Clint Dale flight Attendant, qantaslink8. Karen Lonergan executive manager,

performance and culture9. Sheela Rowlands customer service Agent,

qantas club

10. Davis Kwok q catering Driver11. Amelia-Jayne Parker Jetstar international cabin crew12. Majida Bazzi q catering wash team13. Alan Milne manager maintenance

operations centre14. Melinda Black manager financial services

marketing, qantas loyalty15. Mark Gilmour second officer b74416. Paul White fleet presentation coordinator17. Justin White premium customer service Agent18. Victor So Aircraft maintenance engineer

– line maintenance operations A380

19. Kelly Seward Group sales consultant20. Captain Mike O'Neill A380 captain21. Lauren Dickson customer service manager

Jetstar international22. David Fuelling manager Aircraft trading23. Jonathan Hards licensed Aircraft maintenance

engineer – line maintenance operations A380

24. Mariannel Azarcon senior flight Analyst25. Kerri Atkins flight Attendant, international26. Roger Hedley Airline services operator

– bus Driver27. Andrew Goh customer service manager,

international

28. Suzannah Lutterschmidt Airline service operator

- forklift operator29. Alice Ackerman manager Retail Development

and Advertising30. David Singh it consultant31. Captain Yolanne Baker qantaslink captain32. Yianni Johns Aircraft maintenance engineer33. Wayne Brown Aircraft painter34. Sarah Purser flight Attendant, international35. Stephen Capron technical officer36. Zac Kennedy Jetstar pilot

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qantas Airways limitedAbn 16 009 661 901

Documents

The Sum of Us - Qantas...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