Qantas 2010 Annual Report Download

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The
Sum
of Us
Annual Report 2010

Table of contents

  • Page 1
    The Sum of Us Annual Report 2010

  • Page 2
    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.

  • Page 3
    1 AnnuAl RepoRt 2010 The Sum of Us Contents 1 2 4 6 8 10 - The Sum gf Us - The Visign - Fgrward Thinking - Chairman's Repgrt - CEO's Repgrt - Bgard gf Directgrs 14 - Infgrmatign gn Qantas 16 - Review gf Operatigns 20 - Cgrpgrate Ggvernance Statement 28 - Financial Repgrt 107 - Sustainability ...

  • Page 4
    ...their passion in support of our brands. 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...

  • Page 5
    .... Our shareholders, customers, employees and the Australian community look to us for the highest standards of safety, service, citizenship and environmental responsibility and we aim to meet those expectations year after year. Sustainable Operations Giving Back At Qantas we consider good corporate...

  • Page 6
    ... 16 November 1920 First airline to offer round-the-world services via both hemispheres 1958 Qantas employee Jack Grant invented the inflatable aircraft escape slide-raft Invented Business Class travel 1979 1965 World's longest flight undertaken by a commercial jet aircraft: London-Sydney non...

  • Page 7
    ...to launch low-fare long haul operations with Jetstar First airline to offer 'degustation' First Tasting Menu with Neil Perry cuisine 2006 2007 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...

  • Page 8
    ... increased gperating cash flgw, and the best credit rating gf any airline in the wgrld - Cgntinuing investment in a mgdern and simplified fleet, with argund 160 aircraft gn grder, and an average gf gne delivery per mgnth planned fgr the next eight years - Cgntinuing inngvatign and imprgvement in the...

  • Page 9
    7 AnnuAl RepoRt 2010 Dividend approach The Bgard recggnises the desirability gf returning a dividend tg sharehglders wherever pgssible, and careful cgnsideratign was given tg this matter. Over the cgming perigd the Qantas Grgup will need tg service its very high capital requirements, and retaining...

  • Page 10
    ... GRoup 8 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. It has been a busy and prgductive year...

  • Page 11
    ... the best lgw fares airline in the wgrld, which is all abgut sustainable grgwth and being true tg the pgsitive and energetic values gf the brand. Fgr example, this year Jetstar was the first airline in the wgrld tg trial the iPad as an inflight entertainment system. Jetstar has ngw carried mgre...

  • Page 12
    ... Jgyce spent eight years at Aer Lingus, where he held rgles in Sales, Marketing, IT, Netwgrk Planning, Operatigns Research, Revenue Management and Fleet Planning. Age: 44 Garry Hounsell BBus(Acc), FCA, CPA, FAICD Independent Non-Executive Director Garry Hgunsell was appginted tg the Qantas Bgard in...

  • Page 13
    ...'s Chairman and Managing Directgr. Age: 67 James Strong, AO Independent Non-Executive Director Barbara Ward BEc, MPolEc Independent Non-Executive Director Barbara Ward was appginted tg the Qantas Bgard in June 2008. She is a Member gf the Safety, Health, Envirgnment and Security Cgmmittee and the...

  • Page 14
    the qAntAs GRoup 12

  • Page 15
    13 ANNUAL REPORT 2010 Information on Qantas and Review of Operations

  • Page 16
    ... merger transaction with Stella Travel Services is completed Qantas is also a partner with Australia Post in two jointly controlled entities: -The domestic air freight operator Australian air Express -The national road freight business Star Track Express Airline Network Qantas Group airlines...

  • Page 17
    ... delivering one of the world's most effective fleets flying on an optimal route network -Customer service excellence -Operational efficiency and achieving simplicity and further productivity across the business -Two strong complementary brands - Qantas and Jetstar as the best premium and low fares...

  • Page 18
    ... cost saving achievements for the year. The Qantas, Jetstar, Qantas Freight and Qantas Frequent Flyer businesses have all delivered double digit percentage growth in underlying earnings compared to the prior year, with both Jetstar and Qantas Frequent Flyer delivering record results. Group revenue...

  • Page 19
    ...in cash earnings across the Group and working capital initiatives -Tax refunds of $129 million in 2009/2010, compared to payments of $274 million in 2008/2009 Investing cash flows grew to $1.6 billion for the year following the purchase of 11 new aircraft, including three A380s. Financing cash flows...

  • Page 20
    ... business transformation program aims to equip Qantas for sustainable and profitable growth in an increasingly competitive operating environment. QFuture initiatives achieved a $533 million benefit in terms of cost savings and new revenue in the program's first full year, with significant savings...

  • Page 21
    ...retail inventories and the global launch of new electronic devices. The global freight market has been slower to recover. Volumes are improving but, due to intense competition, yields remain lower than the prior year. JETSET TRAVELWORLD GROUP 2010 2009 % change Total Transaction Value Total Revenue...

  • Page 22
    ... Financial Officer (CFO) -Developing Board and Executive Management and succession planning -Ensuring a clear relationship between performance and executive remuneration -Monitoring the Group's system of risk management and internal compliance and control -Ensuring that the market and shareholders...

  • Page 23
    21 ANNUAL REPORT 2010 Corporate Governance Statement continued for the year ended 30 June 2010 THE BOARD IS STRUCTURED TO ADD VALUE Qantas currently has ten Directors (see details on pages 10 and 11). Nine Directors are Independent Non-Executive Directors elected by shareholders. The Independent ...

  • Page 24
    ... any hedging or margin lending arrangement or otherwise granting a charge over the securities of any Qantas Group Listed Entity, where control of any sale process relating to those securities may be lost. Whistleblower Policy The Qantas Whistleblower Policy encourages employees to report concerns...

  • Page 25
    ... risk policies are included in the Qantas Group Business Practices Document available in the Corporate Governance section on the Qantas website. The Qantas risk management and internal control system aligns to the principles included in the Australian/New Zealand Standard on Risk Management...

  • Page 26
    ... audit activity to changes to the Qantas Group business and risk profile. The audit plan is approved by the Audit Committee bi-annually and endorsed by the SHESC. Audit projects performed by Internal Audit assist the Audit Committee and the SHESC to promote sound risk management and good corporate...

  • Page 27
    ... Remuneration Report from page 33. Qantas Directors are entitled to statutory superannuation and certain travel entitlements (accrued during service) which are reasonable and standard practice in the aviation industry (see page 42). Review of Executive Management Performance At least annually, the...

  • Page 28
    THE QANTAS GROUP 26

  • Page 29
    27 ANNUAL REPORT 2010 Financial Report

  • Page 30
    ... Parties 32. Controlled Entities 33. Deed of Cross Guarantee 34. Financial Risk Management 35. Events Subsequent to Balance Date 36. Parent Entity Disclosures for Qantas Airways Limited (Qantas) Directors' Declaration Independent Auditor's Report Shareholder Information Sustainability Statistics and...

  • Page 31
    29 ANNUAL REPORT 2010 Directors' Report for the year ended 30 June 2010 The Directors of Qantas Airways Limited (Qantas) present their Report together with the Financial Statements of the consolidated entity, being Qantas and its controlled entities (Qantas Group), for the year ended 30 June 2010...

  • Page 32
    ...Bank of Australia James Strong Qantas Airways Limited IAG Finance (New Zealand) Limited Insurance Australia Group Limited Kathmandu Holdings Limited Woolworths Limited Barbara Ward Qantas Airways Limited Brookfield Multiplex Capital Management Limited1 Lion Nathan Limited Allco Finance Group Limited...

  • Page 33
    31 ANNUAL REPORT 2010 Directors' Report continued for the year ended 30 June 2010 DIRECTORS' INTERESTS AND BENEFITS Particulars of Directors' interests in the issued capital of Qantas at the date of this Report are as follows: Shares Directors 2010 Number 2009 Number Leigh Clifford Alan Joyce ...

  • Page 34
    THE QANTAS GROUP 32 Directors' Report continued for the year ended 30 June 2010 RIGHTS Performance Rights are awarded to select Qantas Group Executives under the Qantas Deferred Share Plan (DSP). Refer to page 35 for further details. The following table outlines the movements in Rights during the...

  • Page 35
    ... includes "at risk" or performance related elements for which the objectives are to: -Link Executive reward with Qantas' business objectives and financial performance -Align the interests of Executives with shareholders -Support a culture of employee share ownership -Support the retention of...

  • Page 36
    ...and how is performance assessed? The STIP is the annual "at risk" incentive plan for senior Executives at Qantas. Each year Executives may receive an award that is a combination of cash and shares if the plan's performance conditions are achieved. At the start of the year the Board sets a "scorecard...

  • Page 37
    ... Total Shareholder Return (TSR) of Qantas compared to the S&P/ASX100 Index The Board has approved a change to the LTIP target for the 2011-2013 LTIP. The new performance conditions are outlined below. Up to one-half of the total number of LTIP Rights awarded on 9 September 2009 under the 2010...

  • Page 38
    THE QANTAS GROUP 36 Directors' Report continued for the year ended 30 June 2010 Remuneration Report (Audited) continued Summary of Key Contract Terms Contract Details Contract Length Fixed Annual Remuneration Notice by Qantas Notice by Executive Travel Entitlements STIP "at target" opportunity ...

  • Page 39
    37 ANNUAL REPORT 2010 Directors' Report continued for the year ended 30 June 2010 Remuneration Report (Audited) continued Qantas Financial Performance History To provide further context on Qantas' performance, the following graphs outline a five year history of key financial metrics. UNDERLYING ...

  • Page 40
    ... for the year ended 30 June 2010 Remuneration Report (Audited) continued Remuneration for the year ended 30 June 2010 - Executives Short-Term Employee Benefits $'000 Executive Director Cash Non-Cash Cash FAR Incentives Benefits 1 Post-Employment Benefits Total Superannuation Travel Total Other...

  • Page 41
    ..., and Safety, Health, Environment & Security Committee. Non-Executive Directors do not receive any performance related remuneration. Non-Executive Directors are paid a travel allowance when travelling on international flights of greater than six hours to attend Board and Committee Meetings. All...

  • Page 42
    ... 2. The Employee Share Ownership Plan allows Non-Executive Directors to purchase shares at no discount to market price on a salary sacrifice basis, and operates under the DSP Terms and Conditions. General Cosgrove participated in this plan from July 2008 to June 2010. The value of shares is included...

  • Page 43
    ...the annual financial budget. For example, for Qantas Airlines unit cost performance is calculated as Net Expenditure divided by Group Available Seat Kilometres (ASKs). To ensure the measure focuses on the underlying operating activities and efficiencies, the measure excludes the impact of fuel price...

  • Page 44
    ... Qantas Group The grant date and number of deferred shares awarded to Key Management Personnel are outlined on page 87. The accounting expense relating to share grants are disclosed in the remuneration table on page 43. Superannuation Termination Payments Other Long-term Benefits Performance Share...

  • Page 45
    ... the Retention Plan to Executives in 2008 was $5.45. The supplemental market value at year end of share-based payments is based on the closing share price at 30 June 2010 of $2.20 (2009: $2.01) as a substitute for the volume weighted share price determined at grant date. 3. A sign-on award of 75...

  • Page 46
    ... QANTAS GROUP 44 Directors' Report continued for the year ended 30 June 2010 Remuneration Report (Audited) continued LTIP awards - vesting and forfeiture Awards of Rights under the LTIP may vest and convert to Qantas shares subject to the achievement of long-term performance hurdles. Any Rights...

  • Page 47
    ... of its operations through the Safety, Health, Environment & Security Committee, which is responsible for monitoring compliance with these regulations and reporting to the Board. The Directors are satisfied that adequate systems are in place for the management of the Qantas Group's environmental...

  • Page 48
    ... in relation to the audit. KPMG Sydney, 30 August 2010 Martin Sheppard Partner Rounding Qantas is a company of a kind referred to in Australian Securities and Investments Commission (ASIC) Class Order 98/100 dated 10 July 1998. In accordance with the Class Order, amounts in this Directors' Report...

  • Page 49
    47 ANNUAL REPORT 2010 Consolidated Income Statement for the year ended 30 June 2010 Qantas Group Notes 2010 $M 2009 $M REVENUE AND OTHER INCOME Net passenger revenue Net freight revenue Other Revenue and other income EXPENDITURE Manpower and staff related Fuel Aircraft operating variable ...

  • Page 50
    ... in fair value of cash flow hedges, net of tax Foreign currency translation of controlled entities Foreign currency translation of associates Hedge reserve movement of associates, net of tax Other comprehensive income for the year Total comprehensive income for the year Total comprehensive income...

  • Page 51
    ... accounted for using the equity method Other investments Property, plant and equipment Intangible assets Other Total non-current assets Total assets CURRENT LIABILITIES Payables Revenue received in advance Interest-bearing liabilities Other financial liabilities Provisions Deferred lease benefits...

  • Page 52
    ...GROUP 50 Consolidated Statement of Changes in Equity for the year ended 30 June 2010 Foreign Currency Translation Reserve Employee Treasury Compensation Shares Reserve NonRetained controlling Earnings Interest Qantas Group $M Issued Capital Hedge Reserve Total Equity Balance as at 1 July 2008...

  • Page 53
    51 ANNUAL REPORT 2010 Consolidated Cash Flow Statement for the year ended 30 June 2010 Qantas Group Notes 2010 $M 2009 $M CASH FLOWS FROM OPERATING ACTIVITIES Cash receipts in the course of operations Cash payments in the course of operations Interest received Interest paid Dividends received ...

  • Page 54
    ...whose shares are publicly traded on the Australian Securities Exchange (ASX) and which is subject to the operation of the Qantas Sale Act as described in the Corporate Governance Statement. The consolidated Financial Report for the year ended 30 June 2010 comprises Qantas and its controlled entities...

  • Page 55
    ... The Qantas Group is subject to foreign currency, interest rate, fuel price and credit risks. Derivative and non-derivative financial instruments are used to hedge these risks. It is Qantas policy not to enter into, issue or hold derivative financial instruments for speculative trading purposes...

  • Page 56
    ... any, on the underlying assets' carrying value) and it is probable that the economic benefits will accrue to the Qantas Group. Revenue from aircraft charter and leases, property income, Qantas Club membership fees, freight terminal and service fees, commission revenue and other miscellaneous income...

  • Page 57
    55 ANNUAL REPORT 2010 Notes to the Financial Statements continued for the year ended 30 June 2010 1. Statement of Significant Accounting Policies continued (H) GOODS AND SERVICES TAX (GST) Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST ...

  • Page 58
    ... parts 10 - 40 3 - 20 2.5 - 20 2.5 - 20 15 - 20 0 0 0 - 10 0 - 20 0 - 20 Depreciation rates and residual values are reviewed annually and reassessed having regard to commercial and technological developments, the estimated useful life of assets to the Qantas Group and the long-term fleet plan.

  • Page 59
    ...on staff turnover history and is discounted using the Australian Government bonds rate at balance date which most closely matches the terms to maturity of the related liabilities. The unwinding of the discount is treated as a finance charge. Defined Contribution Superannuation Plans The Qantas Group...

  • Page 60
    THE QANTAS GROUP 58 Notes to the Financial Statements continued for the year ended 30 June 2010 1. Statement of Significant Accounting Policies continued Employee Termination Benefits Provisions for termination benefits are only recognised when there is a detailed formal plan for the termination ...

  • Page 61
    ...sale of Qantas Holidays and Qantas Business Travel Revenue from direct earn conversion Accelerated depreciation and impairment losses, net of impairment reversals -Property, plant and equipment and related provisions for costs to sell - Investments - Goodwill and other intangible assets Redundancies...

  • Page 62
    ... operating segments: 1. Qantas - representing the Qantas passenger flying businesses and related businesses 2. Jetstar - representing the Jetstar passenger flying businesses, including Jetstar Asia and the investment in Jetstar Pacific 3. Qantas Freight - representing the air cargo and express...

  • Page 63
    ... ANNUAL REPORT 2010 Notes to the Financial Statements continued for the year ended 30 June 2010 3. Other Revenue and Expenditure Qantas Group 2010 $M 2009 $M OTHER REVENUE Tours and travel revenue Contract work revenue Ancillary passenger revenue Passenger service fees Lease revenue Other Total...

  • Page 64
    ...year ended 30 June 2010 5. Net Finance Costs Qantas Group 2010 $M 2009 $M FINANCE INCOME Related parties -Associates and jointly controlled entities Unwinding of discount on receivables Interest income on financial assets measured at amortised cost Total finance income FINANCE COSTS Finance leases...

  • Page 65
    63 ANNUAL REPORT 2010 Notes to the Financial Statements continued for the year ended 30 June 2010 7. Auditor's Remuneration Qantas Group 2010 $000 2009 $000 AUDIT SERVICES Auditors of Qantas - KPMG Australia -Audit and review of Financial Report - Qantas Group (excluding Jetset Travelworld Group...

  • Page 66
    ... Financial Statements continued for the year ended 30 June 2010 9. Dividends (A) DIVIDENDS DECLARED AND PAID Dividends declared and paid in the current and prior year by Qantas are: Total Amount $M Franked Tax Rate for Franking Credit % Percentage Franked % 2010 Cents per Share Date of Payment...

  • Page 67
    65 ANNUAL REPORT 2010 Notes to the Financial Statements continued for the year ended 30 June 2010 11. Receivables Qantas Group 2010 $M 2009 $M CURRENT Trade debtors Associates and jointly controlled entities Other parties Less: provision for impairment losses Other loans Aircraft security ...

  • Page 68
    ...: Qantas Group Ownership Interest Principal Activity Country of Incorporation Balance Date 2010 % 2009 % Air Pacific Limited Fiji Resorts Limited Hallmark Aviation Services L.P. HT & T Travel Philippines, Inc. Holiday Tours and Travel (Thailand) Ltd Holiday Tours & Travel Vietnam Co. Ltd Jetstar...

  • Page 69
    ...Group Ownership Interest Principal Activity Country of Incorporation Balance Date 2010 % 2009 % Australian air Express Pty Ltd Harvey Holidays Pty Ltd LTQ Engineering Pty Limited (formerly known as Jet Turbine Services Pty Limited) Star Track Express Holdings Pty Limited Air cargo Tours and travel...

  • Page 70
    THE QANTAS GROUP 68 Notes to the Financial Statements continued for the year ended 30 June 2010 15. Investments Accounted for using the Equity Method continued Qantas Group 2010 $M 2009 $M RESULTS OF JOINTLY CONTROLLED ENTITIES Revenues Expenses Profit before income tax expense Income tax ...

  • Page 71
    69 ANNUAL REPORT 2010 Notes to the Financial Statements continued for the year ended 30 June 2010 16. Property, Plant and Equipment Qantas Group 2010 $M 2009 $M Freehold land - owned At cost Total freehold land Buildings - owned At cost Less: accumulated depreciation Buildings - leased At cost ...

  • Page 72
    ... the Financial Statements continued for the year ended 30 June 2010 16. Property, Plant and Equipment continued Qantas Group 2010 $M 2009 $M Aircraft spare parts - owned At cost Less: accumulated depreciation Aircraft spare parts - leased At cost Less: accumulated depreciation Total aircraft spare...

  • Page 73
    71 ANNUAL REPORT 2010 Notes to the Financial Statements continued for the year ended 30 June 2010 17. Intangible Assets Qantas Group 2010 $M 2009 $M Goodwill At cost Less: accumulated impairment Total goodwill at net book value Airport landing slots At cost Total airport landing slots Software ...

  • Page 74
    ... does not exceed the long-term average growth rate for the industry. Cash outflows include capital expenditure for the purchase of aircraft and other property, plant and equipment. These do not include capital expenditure that enhances the current performance of assets and related cash flows have...

  • Page 75
    ...607 607 Qantas Group 2010 $M Opening Balance Recognised in the Recognised Consolidated in Other Income Comprehensive Statement Income Acquisitions of Controlled Entities Closing Balance Reconciliations Inventories Property, plant and equipment and intangible assets Payables Revenue received in...

  • Page 76
    ...to the Financial Statements continued for the year ended 30 June 2010 19. Payables Qantas Group 2010 $M 2009 $M Trade creditors Associates and jointly controlled entities Other parties 6 594 600 1,150 1,750 38 559 597 1,236 1,833 Other creditors and accruals Total payables 20. Revenue Received...

  • Page 77
    ... ANNUAL REPORT 2010 Notes to the Financial Statements continued for the year ended 30 June 2010 22. Provisions Qantas Group 2010 $M 2009 $M CURRENT Dividends Employee benefits -Annual leave -Long service leave -Redundancies and restructuring Onerous contracts Make good on leased assets Insurance...

  • Page 78
    ... QANTAS GROUP 76 Notes to the Financial Statements continued for the year ended 30 June 2010 23. Capital and Reserves Qantas Group 2010 $M 2009 $M ISSUED CAPITAL Issued and paid-up capital: 2,265,123,620 (2009: 2,265,123,620) ordinary shares, fully paid Movements in the share capital of Qantas...

  • Page 79
    77 ANNUAL REPORT 2010 Notes to the Financial Statements continued for the year ended 30 June 2010 24. Share-based Payments The Deferred Share Plan (DSP) Terms and Conditions were approved by shareholders at the 2002 AGM. The DSP governed equity benefits to Executives within the Qantas Group. ...

  • Page 80
    ...42. (C) RETENTION PLAN (RP) There were no awards made under the RP during the year (2009: nil awards). Shares are valued based on the volume weighted average price of Qantas shares as traded on the ASX for the seven calendar days up to and including the date of allocation. Expected dividends are not...

  • Page 81
    ... (641) (268) (4) (B) HEDGE RESERVE At 30 June 2010, the Qantas Group held various types of derivative financial instruments that were designated as cash flow hedges of future forecast transactions. These were hedging of: -Future foreign currency revenue receipts and operational payments by future...

  • Page 82
    ... as part of any hedging relationship. As a result, the time value component is not hedge accounted and changes in fair values are recognised immediately in the Income Statement for the financial period as it does not form part of a hedging relationship. Qantas Group 2010 $M 2009 $M INEFFECTIVE AND...

  • Page 83
    ... cent of Qantas Holidays Limited and Qantas Business Travel Pty Limited of $86 million before tax. (ii) Jetstar Asia (Orangestar Investment Holdings Pte Limited and its controlled entities) During the year ended 30 June 2009, the Qantas Group increased its ownership in Orangestar Investment Holdings...

  • Page 84
    ... Fair Value Adjust Fair Value Jetstar Asia Group Carrying Values Fair Value Adjust Fair Value Qantas Group Fair Value Consideration paid, including transaction costs Less: cash acquired Payments for controlled entities, net of cash acquired Net assets acquired Receivables Investments accounted for...

  • Page 85
    ... for the year ended 30 June 2010 28. Commitments (A) FINANCE LEASE AND HIRE PURCHASE COMMITMENTS Qantas Group 2010 $M 2009 $M AS LESSEE Finance lease and hire purchase liabilities included in the Financial Statements at the present value of future rentals Aircraft and engines - payable: Not later...

  • Page 86
    ...Group 2010 $M 2009 $M Capital expenditure commitments contracted but not provided for in the Financial Statements Aircraft Building works Other 14,505 95 228 14,828 16,591 103 96 16,790 Payable: Not later than one year Later than one year but not later than five years Later than five years Total...

  • Page 87
    ...). Qantas Group 2010 $M 2009 $M CHANGES IN THE PRESENT VALUE OF DEFINED BENEFIT OBLIGATION Opening defined benefit obligation Current service cost Interest cost Actuarial losses Exchange differences on foreign plans Benefits paid Closing defined benefit obligation CHANGES IN THE FAIR VALUE OF PLAN...

  • Page 88
    THE QANTAS GROUP 86 Notes to the Financial Statements continued for the year ended 30 June 2010 30. Superannuation continued Qantas Group 2010 $M 2009 $M 2008 $M 2007 $M 2006 $M HISTORICAL AMOUNTS Fair value of plan assets Present value of defined benefit obligation (Deficit)/surplus Experience ...

  • Page 89
    ... (B) REMUNERATION OF KEY MANAGEMENT PERSONNEL The aggregate remuneration of the KMP of the Qantas Group is set out below: Qantas Group 2010 $000 2009 $000 Short-term employee benefits Post-employment benefits Other long-term benefits Statutory annual leave1 Termination benefits Share-based payments...

  • Page 90
    .../2010. 2. Ceased to be KMP during 2008/2009. No amount has been paid, or is payable, by the Executive in relation to these deferred shares. (iii) Long Term Incentive Plan (LTIP) Key Management Personnel Opening Balance Number Granted Number Number Vested Forfeited and Transferred Closing Balance...

  • Page 91
    ...air travel, is set out below: - Toolangi Vineyards is a related entity to Mr Hounsell. Throughout the year, the Qantas Group purchases wine from Toolangi Vineyards for use on Qantas Business Class services - Woolworths Limited and its subsidiaries (Woolworths Group) are related entities to Mr Strong...

  • Page 92
    ... Group provides catering and ground handling services and performs maintenance and contract work for Air Pacific Limited (Air Pacific) -The Qantas Group provides ramp handling services to Australian air Express Pty Ltd (Australian air Express) -The Qantas Group leases aircraft and domestic freight...

  • Page 93
    91 ANNUAL REPORT 2010 Notes to the Financial Statements continued for the year ended 30 June 2010 32. Controlled Entities Qantas Group Ownership Interest Controlled Entities Footnote ACN/ABN Country of Incorporation 2010 % 2009 % 738 Leasing 1 Pty Limited 738 Leasing 2 Pty Limited AAL Aviation ...

  • Page 94
    ... Trustee Limited Qantas Frequent Flyer Limited Qantas Frequent Flyer Operations Pty Limited Qantas Ground Services Pty Limited Qantas Group Flight Training Pty Limited Qantas Group Flight Training (Australia) Pty Limited Qantas Information Technology Ltd Qantas Superannuation Limited 5 6 7 8 9 10...

  • Page 95
    ... ANNUAL REPORT 2010 Notes to the Financial Statements continued for the year ended 30 June 2010 32. Controlled Entities continued Qantas Group Ownership Interest Controlled Entities Footnote ACN/ABN Country of Incorporation 2010 % 2009 % QF 738 Leasing 5 Pty Limited QF 738 Leasing 6 Pty Limited...

  • Page 96
    ... and lodgement of Financial Reports and Directors' Reports. It is a condition of the Class Order that Qantas and each of the controlled entities in the Class Order enter into a Deed of Cross Guarantee (Deed). The effect of the Deed is that Qantas guarantees to each creditor payment in full of any...

  • Page 97
    ... accounted for using the equity method Other investments Property, plant and equipment Intangible assets Other Total non-current assets Total assets Current liabilities Payables Revenue received in advance Interest-bearing liabilities Other financial liabilities Provisions Deferred lease benefits...

  • Page 98
    ... a financial asset of one entity and a financial liability or equity instrument of another entity. The Qantas Group is subject to liquidity, interest rate, foreign exchange, fuel price and credit risks. These risks are an inherent part of the operations of an international airline. The Qantas Group...

  • Page 99
    97 ANNUAL REPORT 2010 Notes to the Financial Statements continued for the year ended 30 June 2010 34. Financial Risk Management continued (B) MARKET RISK The Qantas Group has exposure to market risk in the following areas: interest rate, foreign exchange and fuel price risks. The following ...

  • Page 100
    ... out the maximum exposure to credit risk as at 30 June 2010: Qantas Group Notes 2010 $M 2009 $M On Balance Sheet Cash and cash equivalents Trade debtors Aircraft security deposits Sundry debtors Other loans Other financial assets Off Balance Sheet Operating leases as lessor Total 10 11 11 11 11...

  • Page 101
    ... with AASB 139. Carrying Amount Qantas Group Notes 2010 $M 2009 $M Fair Value 2010 $M 2009 $M Financial assets Cash and cash equivalents Trade debtors Aircraft security deposits Sundry debtors Other loans Other financial assets Other investments Financial liabilities Trade creditors Other creditors...

  • Page 102
    ... continued (F) CAPITAL MANAGEMENT The Board's policy is to maintain a strong capital base designed to maximise shareholder value, maintain creditor confidence and sustain future development of the business. Qantas targets a capital structure consistent with an investment grade credit rating while...

  • Page 103
    101 ANNUAL REPORT 2010 Notes to the Financial Statements continued for the year ended 30 June 2010 36. Parent Entity Disclosures for Qantas Airways Limited (Qantas) (A) CONDENSED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2010 Qantas 2010 $M 2009 $M CONDENSED INCOME STATEMENT Sales and ...

  • Page 104
    ... QANTAS GROUP 102 Notes to the Financial Statements continued for the year ended 30 June 2010 36. Parent Entity Disclosures for Qantas Airways Limited (Qantas) continued Qantas 2010 $M 2009 $M CONDENSED CASH FLOW STATEMENT Net cash from operating activities Net cash used in investing activities...

  • Page 105
    103 ANNUAL REPORT 2010 Notes to the Financial Statements continued for the year ended 30 June 2010 36. Parent Entity Disclosures for Qantas Airways Limited (Qantas) continued (D) CONTINGENT LIABILITIES Details of contingent liabilities are set out below. The Directors are of the opinion that ...

  • Page 106
    ... 2010 1. In the opinion of the Directors of Qantas Airways Limited (Qantas): (a) The Financial Statements and Notes, and the Remuneration Report set out on pages 33 to 44 in the Directors' Report, are in accordance with the Corporations Act 2001, including: (i) Complying with Australian Accounting...

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    ... Financial Report of the Qantas Group comprising Qantas Airways Limited (Qantas) and the entities it controlled at the year's end or from time to time during the financial year, which comprises the Consolidated Balance Sheet as at 30 June 2010, and Consolidated Income Statement, Consolidated...

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    ... shareholders of Qantas: Shareholders Ordinary Shares Held % of Issued Shares The Capital Group Companies, Inc1 Balanced Equity Management Pty Limited2 UBS Nominees Pty Limited3 Commonwealth Bank of Australia4 Westpac Banking Corporation Group5 1. Substantial shareholder notice dated 17 August 2010...

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    ...all wholly-owned operations of the Qantas Group globally for the 2009/2010 financial year unless otherwise indicated. Approximately 92% of employees (based on full-time equivalents) are based in Australia. FEEDBACK Feedback on the sustainability information presented in the Annual Report and the ESG...

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    ... ON-TIME PERFORMANCE (%) 2009/2010 2008/2009 2007/2008 2006/2007 2005/2006 70 75 80 ARRIVALS DEPARTURES 85.2 86.2 80.4 81.1 79.4 79.7 86.2 86.4 84.9 85.6 85 90 Notes Unit 2010 2009 2008 2007 2006 GRI indicator1 Domestic on-time arrivals (Australia) Qantas Group Qantas QantasLink Jetstar...

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    ... time equivalent employees Qantas Airlines Jetstar Jetset Travelworld Group Frequent Flyer Corporate Support Total Diversity of employees % Women % Women in senior positions % Women Directors on the Qantas Board Number of women Directors on the Qantas Board Employee by age group (permanent employees...

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    ... opportunities to minimise cost and manage its environmental impact. It also enables the Group to better absorb fluctuations in oil prices. In early 2010, the Group reached a key milestone of avoiding one million tonnes of CO2-e through fuel conservation activities since the program's launch in 2004...

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    ... statistics, average age and % eligible for retirement in the next five years, which were reported in the 2008/2009 Qantas Annual Report. Understanding the changing demographics of the workforce assists in workplace planning. Training associated with the introduction of the new Airbus A380 fleet and...

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    ... continued Sustainability Statistics Definitions HEALTH AND SAFETY OHS Lost Time Injury Frequency Rate (LTIFR) (Australia and New Zealand) The number of Lost Time Injuries (LTIs) per million hours worked in Australia and New Zealand from 1 July to 30 June, where an LTI is defined as any work related...

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    ...)). This amount does not include the value of airfare and freight charges that accrue to Qantas from overseas sources which also represent export revenue. Domestic traveller expenditure Domestic traveller expenditure is calculated as the number of Qantas Group domestic passengers for the 12 months...

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    ... Act applies to activities from facilities that are under Qantas' operational control as opposed to only legal entities for financial and sustainability reporting purposes -Reportable emissions sources. The emissions reported in the 2010 Qantas Group Annual Report include carbon dioxide equivalent...

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    ... is to conduct an independent review of the Performance Statistics set out in the Sustainability Section of the Report for the year ended 30 June 2010 for the Qantas Group's operations in Australia and overseas (unless otherwise stated). Further, the internal control structure, which Management has...

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    ...the Corporate Governance section on the Qantas website (at www.qantas.com) REGISTERED OFFICE Qantas Airways Limited ABN 16 009 661 901 Qantas Centre Level 9 Building A 203 Coward Street Mascot NSW 2020 Australia Telephone +61 2 9691 3636 Facsimile +61 2 9691 3339 www.qantas.com QANTAS SHARE REGISTRY...

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    Qantas Airways Limited ABN 16 009 661 901