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99 ANNUAL REPORT 2011
for the year ended 30 June 2011
Notes to the Financial Statements continued
A nancial instrument is any contract that gives rise to both a nancial asset of one entity and a nancial 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 manages these risk exposures using various nancial instruments,
governed by a set of policies approved by the Board. Qantas Group’s policy is not to enter, issue or hold derivative nancial instruments for
speculative trading purposes.
The Qantas Group uses different methods to assess and manage different types of risk to which it is exposed. These methods include
correlations between risk types, sensitivity analysis in the case of interest rate, foreign exchange and other price risks, and ageing analysis
and sensitivity analysis for liquidity risk and credit risk.
A LIQUIDITY RISK
Liquidity risk is the risk that an entity will encounter difculty in meeting obligations associated with nancial liabilities. The Qantas Group
manages liquidity risk by targeting a minimum liquidity level, ensuring long-term commitments are managed with respect to forecast available
cash inows, maintaining access to a variety of additional funding sources including commercial paper and standby facilities and managing
maturity proles.
The following tables summarise the contractual timing of cash ows, including estimated interest payments, of nancial liabilities and derivative
instruments. Contractual amount assumes current interest rates and foreign exchange rates.
Qantas Group

$M
Less than
 Year
 to 
Years
More than
 Years Total
FINANCIAL LIABILITIES
Trade creditors  – – 
Bank loans – secured , , ,
Bank loans – unsecured , –,
Other loans – unsecured , –,
Lease and hire purchase liabilities  –
Derivatives – inows () (,) () (,)
Derivatives – outows  ,  ,
Net other nancial assets/liabilities – outows   –
Total nancial liabilities , , , ,
. Recognised nancial liability carrying values are shown pre-hedging.
Qantas Group

$M
FINANCIAL LIABILITIES
Trade creditors  – – 
Bank loans – secured , , ,
Bank loans – unsecured  –
Other loans – unsecured   ,
Lease and hire purchase liabilities  –
Derivatives – inows () (,) () (,)
Derivatives – outows  ,  ,
Net other nancial assets/liabilities – inows () () –()
Total nancial liabilities , , , ,
. Recognised nancial liability carrying values are shown pre-hedging.
34. Financial Risk Management