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The Transformation Continues
QANTAS ANNUAL REPORT 2013
CHAIRMAN’S AND
CEO’S REPORTS REVIEW OF OPERATIONSFINANCIAL OVERVIEW

Table of contents

  • Page 1
    CHAIRMAN'S AND CEO'S REPORTS FINANCIAL OVERVIEW REVIEW OF OPERATIONS The Transformation Continues QANTAS ANNUAL REPORT 2013

  • Page 2

  • Page 3
    ... Qantas/Emirates Network Jetstar's Pan-Asian Network Qantas Group Passenger Fleet Map Australia's National Carrier ANNUAL REPORT 50 54 64 71 97 165 166 Board of Directors Review of Operations Corporate Governance Statement Directors' Report Financial Report Shareholder Information Sustainability...

  • Page 4
    "Qantas is in a period of transformation as we make our business better and stronger." Qantas Group CEO Alan Joyce 02

  • Page 5
    QANTAS ANNUAL REPORT 2013 03

  • Page 6
    ... The Qantas Group reported statutory profit after tax of $6 million and underlying profit before tax of $192 million* for the 2012/2013 financial year - a result that demonstrates the strength of our portfolio and the progress we have made with our strategy in a challenging aviation market. Three...

  • Page 7
    QANTAS ANNUAL REPORT 2013 05

  • Page 8
    06

  • Page 9
    ... start and Jetstar Hong Kong working towards approval, Jetstar is positioned for long term success in Asia, the world's biggest aviation market and a region critical to Australia's economic future. Qantas Loyalty continues to go from strength to strength, reaching 9.4 million members in 2012/2013...

  • Page 10
    ... and productivity improvements across the Group. Qantas Transformation initiatives delivered $171 million of strategic benefits in 2012/2013, and a further $257 million of benefits from ongoing cost management. The Group has strengthened its financial position, with positive net free cash flow...

  • Page 11
    ... ANNUAL REPORT 2013 Segment * Performance QANTAS DOMESTIC $365m DOWN 21 PER CENT QANTAS INTERNATIONAL Financial Position POSITIVE NET FREE CASH FLOW * $372m LIQUIDITY* -$246m IMPROVEMENT OF 49 PER CENT JETSTAR $3.4b GROSS DEBT REDUCED BY $138m DOWN 32 PER CENT QANTAS LOYALTY $1b STRATEGIC...

  • Page 12
    In 2012/2013 the Qantas Group maintained its profit-maximising 65 per cent domestic market share. 10

  • Page 13
    ... Qantas Loyalty The Qantas airlines are going through their biggest transformation since privatisation in 1995, while Jetstar and Qantas Loyalty continue to expand their horizons. In 2012/2013 we delivered against all our strategic goals, laying the foundations for sustainable, long-term growth...

  • Page 14
    12

  • Page 15
    ...65 per cent market share in 2012/2013, and customer satisfaction reached record highs. Highlights of 2012/2013: » Qantas Domestic retained an 84 per cent share of the corporate travel market and was the best major airline for on-time performance. » Significant investment in Western Australia, with...

  • Page 16
    14

  • Page 17
    .../Emirates partnership (see feature on page 24) and a number of important transformation initiatives saw us make strong progress during 2012/2013. Qantas aircraft first flew to England in the 1930s. Today Qantas operates 14 A380 services per week on the 'Kangaroo Route' to London, via our new hub...

  • Page 18
    .... » Emirates partnership opening up lounge access, frequent flyer opportunities and reciprocal benefits for premium customers. » Business class experience redesigned with the introduction of a 'sleep service' and new on-board amenities. » Chauffeur drive service introduced for flights between...

  • Page 19
    ...Australian air Express in-house under Qantas Freight brand. » Improving the economics of our fleet, as we work towards a simpler and more efficient mix of aircraft. Dubai International Airport handles 60 million passengers per year and is within eight hours' flying time of 75 per cent of the world...

  • Page 20
    ... territories. Like Jetstar in Australia, Jetstar in Asia is opening up new travel opportunities and bringing down air fares for consumers, as the region's fast-growing economies drive tourism growth (see feature on page 36). Highlights for the Jetstar Group in 2012/2013: » Carried its 100 millionth...

  • Page 21
    QANTAS ANNUAL REPORT 2013 In Asia, Jetstar is building the scale necessary for long-term success. Clockwise from top left: Engineers Stephen Collins (left) and Erik Lolohea (right); Jetstar A320 captain Alison Bray; Cabin Crew Kristy Bourke; and Jetstar Heavy Maintenance Apprentice Joey Parsons. ...

  • Page 22
    ... to experience the many benefits the program has to offer. Highlights of 2012/2013: » Opened up new benefits for frequent flyers through the Emirates partnership, with redemptions on partner airlines more than doubling as a result. » Achieved a record Net Promoter Score (which measures customer...

  • Page 23
    ...that members can take advantage of Qantas' Faster, Smarter Check-in system when travelling domestically. Top five international destinations for Qantas Frequent Flyers redeeming points in the first half of 2013: 1 2 3 4 5 Nadi, Fiji Auckland, New Zealand Los Angeles, USA Johannesburg, South Africa...

  • Page 24
    The Qantas Transformation program is about providing better service, operating more efficiently and harnessing new technology. 22

  • Page 25
    ... REPORT 2013 Qantas in Transformation Qantas is going through its biggest transformation since privatisation in 1995. This transformation is taking place in all areas of our business. It is integral to meeting our strategic goals and ensuring that we are competitive in a rapidly changing aviation...

  • Page 26
    24

  • Page 27
    ...domestic and regional network. We are also working together on trans-Tasman and Asian routes. Qantas' position in the highly competitive market between Australia and Europe is far stronger in partnership with Emirates. At the same time, moving our hub for European flights from Singapore to Dubai has...

  • Page 28
    ... Paris Lyon Hamburg Amsterdam Dusseldorf Frankfurt Prague Munich Zurich Geneva Milan Nice Warsaw Istanbul Rome Madrid Barcelona Athens Beirut Cairo Amman Dammam Bahrain Riyadh Jeddah Dubai Muscat Accra Nairobi 26

  • Page 29
    QANTAS ANNUAL REPORT 2013 Qantas/Emirates Network Over 65 destinations across Europe, the Middle East and North Africa available via Dubai, including over 30 in Europe. Kuala Lumpur Singapore Bangkok Columbo Brisbane Perth Sydney Adelaide Auckland Melbourne Qantas Qantas Codeshare Queenstown ...

  • Page 30
    ...best low-cost carrier in Australia/New Zealand. Qantas was also named one of the world's top 10 airlines and Jetstar was named the world's second-best low-cost carrier. » Australian Traveller magazine named Qantas Best Major Australian Airline and Best Regional Airline in its annual readers' choice...

  • Page 31
    QANTAS ANNUAL REPORT 2013 Clockwise from top left: Cabin Crew Alana Hockley; Q Catering Brisbane Helen Sorensen; Captain Christopher Doyle; Jetstar Cabin Crew Shana Delaney; Brisbane Heavy Maintenance Mechanic Craig Bickerton; and Sydney Domestic Terminal Ramp pushback driver Kevin Barraclough. 29

  • Page 32
    ...New Uniform From early 2014, Qantas' new uniform will help our customer-facing employees do their job in style and comfort. APPROXIMATELY STYLES HAVE BEEN DESIGNED FOR MEN AND WOMEN. GARMENTS WILL BE PRODUCED, AND FABRICS HAVE BEEN SELECTED, INCLUDING PREMIUM AUSTRALIAN MERINO WOOL IN THE SUITING...

  • Page 33
    QANTAS ANNUAL REPORT 2013 "My inspiration for the uniform came from Qantas' striking logo: the powerful red triangle and the flying kangaroo." Martin Grant 31

  • Page 34
    ...class customers to pre-order their meal online, guaranteeing meal selection or letting crew know that they want to sleep first and eat later. » Qantas Freight employees and truck drivers are also using iPads, helping them manage our supply chain more efficiently. » Our Maintenix system, accessible...

  • Page 35
    QANTAS ANNUAL REPORT 2013 Qantas has always been a leader in aviation technology. Qantas employees in a range of roles are using iPads for quicker, easier access to the information they need. 33

  • Page 36
    ... 2012/2013, the Group took two major steps forward with this strategy: the restructure of Qantas' network following the launch of the Emirates partnership; and the launch and rapid growth of Jetstar Japan. The Jetstar brand is well-established as one of Asia's largest low cost carriers. Jetstar...

  • Page 37
    QANTAS ANNUAL REPORT 2013 Qantas' Asian Network Restructure In February Qantas announced a phased strategy in Asia, with the goal of offering the best customer service of any carrier between Australia and the region. » Stronger links to the key hubs of Singapore and Hong Kong (better frequency and...

  • Page 38
    ... Trang Sydney Auckland Ho Chi Minh City Melbourne Queenstown Christchurch Jetstar Airways Jetstar Asia Jetstar Japan Valuair/Jetstar Airways Jetstar Pacific Perth-Jakarta-Singapore operated by Jetstar Asia for Jetstar Airways Perth-Lombok flights commence 24 September 2013, subject to government...

  • Page 39
    QANTAS ANNUAL REPORT 2013 Jetstar Japan Jetstar Japan is pioneering domestic low-cost air travel in Japan, one of the world's largest aviation markets. » Joint venture with strong local partners: Japan Airlines, Mitsubishi and Tokyo Century Leasing Company. » Fleet has grown from an initial three...

  • Page 40
    Qantas Group Passenger Fleet Map In 2012/2013 the Qantas Group's average passenger aircraft age reached 7.9 years, the lowest in two decades. 20 12 10 6 A38 0-8 00 B74 0 7-4 0 ER B74 0 7-4 10 10 0 0 7-30 B76 ER A 33 0-3 00 A 33 0-2 00 38 Excludes Freighters and Network Aviation Correct as at 30 ...

  • Page 41
    QANTAS ANNUAL REPORT 2013 88 66 28 16 10 6 A 32 0-2 00 A 33 0-2 00 A 32 1-20 0 B7 3 0 7-8 13 6 0 B7 3 0 7-4 0 0 7-20 B7 1 0 5 VH-SDA Q40 0 Q30 Q 20 0 Jetstar A320s include Jetstar Asia, Jetstar Japan and Jetstar Pacific. 39

  • Page 42
    Qantas' 12 A380s are named after Australia's aviation pioneers, including Charles Ulm, who flew with Charles Kingsford Smith on the first crossing of the Pacific by air. 40

  • Page 43
    ... we make today as an employer of Australians, supporter of tourism and small business, buyer and promoter of Australian products, and partner for a diverse range of community organisations. Our strategy to build a strong, sustainable Qantas Group over the long term will enable us to continue...

  • Page 44
    Australian Tourism's Biggest Supporter No company is more invested in Australian tourism than the Qantas Group. » Qantas and Jetstar passengers spent more than $28 billion as tourists in 2012/2013. » We publicise Australian tourism destinations on all our flights, through advertising and marketing...

  • Page 45
    ... ANNUAL REPORT 2013 The Ellen DeGeneres Show » Two episodes of The Ellen DeGeneres Show featured Ellen's visit to Sydney and Melbourne, screening to a global audience of 16 million people in 23 countries. » The Qantas/Destination NSW 'Dance Your Way Down Under' campaign increased inbound ticket...

  • Page 46
    ..., Qantas is a strategic asset for Australia. Our relationship with national defence and emergency services, and the scale of our network and fleet, allow us to provide essential logistical support during natural disasters or other crises, such as the Queensland floods or Cairo protests of 2011...

  • Page 47
    ... Government and Shell, we are conducting a feasibility study into the prospects for aviation biofuel in Australia. On the ground, a highlight of 2012/2013 was the launch of a trigeneration plant to power our Sydney office and operations complex. Qantas' environment strategy was recognised in 2012...

  • Page 48
    ... culture across Australia and around the world. Our dedicated Indigenous careers team identifies job opportunities within the Qantas Group, and in partnership with the Australian Indigenous Education Foundation and the Clontarf Foundation we provide travel, work experience and job opportunities for...

  • Page 49
    QANTAS ANNUAL REPORT 2013 We are engaging Group employees in our Indigenous programs and helping them better understand Indigenous culture. Clockwise from top left: Qantas CFO Gareth Evans speaking to Indigenous employees at the 2013 NAIDOC event; David Williams performing at the Qantas/Emirates ...

  • Page 50
    ...and initiatives, employee volunteering and the Group's charitable trust, the Qantas Foundation. We also continue to support Australian excellence in the arts, sport, food and wine, recognising their importance to our national life. Qantas in the community in 2012/2013: » Launched a partnership with...

  • Page 51
    QANTAS ANNUAL REPORT 2013 We continue to support Australian excellence in the arts, sport, food and wine, recognising their importance to our national life. Clockwise from top left: Jetstar's Gemma Goullet in Vietnam; Make-A-Wish Foundation's Chloe Tsirizos with Qantas pilots on her way to ...

  • Page 52
    ... roles in sales, marketing, IT, network planning, operations research, revenue management and fleet planning. Age: 47 Maxine Brenner BA, LLB Independent Non-Executive Director Maxine Brenner was appointed to the Qantas Board in August 2013. She is a Member of the Remuneration Committee. Ms Brenner...

  • Page 53
    QANTAS ANNUAL REPORT 2013 General Peter Cosgrove, AC, MC FAICD Independent Non-Executive Director Peter Cosgrove was appointed to the Qantas Board in July 2005. He is a Member of the Safety, Health, Environment and Security Committee and a Director of Qantas Superannuation Limited. General Cosgrove...

  • Page 54
    ... Executive Officer and Country Managing Partner of Arthur Andersen and a Board Member of law firm Herbert Smith Freehills. Age: 58 William Meaney BScMEng, MSIA Independent Non-Executive Director William Meaney was appointed to the Qantas Board in February 2012. He is a Member of the Safety, Health...

  • Page 55
    QANTAS ANNUAL REPORT 2013 Paul Rayner BEc, MAdmin, FAICD Independent Non-Executive Director Paul Rayner was appointed to the Qantas Board in July 2008. He is a Member of the Audit Committee and the Remuneration Committee. Mr Rayner is Chairman of Treasury Wine Estates Limited and a Director of ...

  • Page 56
    ... market conditions. The result was underpinned by a significant improvement in net underlying unit cost 2 and reflects the Group's delivery of its strategic priorities. Group Underlying Income Statement Summary June 2013 June 2012 Change % Change Net passenger revenue5 Net freight revenue...

  • Page 57
    ... of key accounting judgements and estimates for tickets which have passed the ticketed travel date. This change aligns the timing of Group revenue recognition and the measurement of revenue received in advance with ticket terms and conditions and historic experience. Net freight revenue increased...

  • Page 58
    ... capital expenditure Investment grade credit rating The Qantas Group has made significant progress in delivering on its strategic priorities during the year Strengthening the Group's domestic position Enhancing alliances, launch of Emirates partnership Qantas Transformation delivering benefits...

  • Page 59
    ... management of new client programs. Building Jetstar in Asia Jetstar has positioned its highly recognised brand to benefit from growth opportunities in the Asian market with the successful launch of Jetstar Japan, the development of Jetstar Hong Kong20 and the completion of Jetstar Pacific's fleet...

  • Page 60
    ... YEAR ENDED 30 JUNE 2013 Qantas is subject to a number of specific business risks which may impact the achievement of the Group's strategy and financial prospects: » Competitive intensity - Excess market capacity impacts industry profitability - Australia's liberal aviation policy settings coupled...

  • Page 61
    ... ANNUAL REPORT 2013 Qantas invested $1.3 billion in its customer product and fleet during the year. Six new unencumbered aircraft were added to the fleet (three B737-800s and three A320-200s). In addition, several non-core assets were sold, including the Group's interest in StarTrack and the Sydney...

  • Page 62
    ... its corporate market revenue share. Qantas continues to support the regional market position through QantasLink and Network Aviation services securing significant corporate charter contracts in the year. QantasLink took delivery of three Bombardier Q400 aircraft during the year and announced...

  • Page 63
    ... ANNUAL REPORT 2013 JETSTAR Strong position in attractive growth markets Best low-cost carrier Australia-Pacific41 Continued growth in ancillary revenue per passenger Unit cost42 improvement Building a strong brand across Asia Leading low-cost technology and customer offering June 2013 June 2012...

  • Page 64
    ... groups in Dubai. New financial card products were launched with David Jones, Westpac and Macquarie Bank. QANTAS FREIGHT » Increased revenue in a competitive environment » Acquisition and integration of Australian air Express » Sale of StarTrack June 2013 June 2012 Change % Change Total Revenue...

  • Page 65
    ...PBT in the 2012/2013 year were driven by the Qantas transformation. Costs include aircraft impairment due to early retirement following strategic network changes, further consolidation of engineering and catering facilities, the integration of Australian air Express offset by the gain on sale of the...

  • Page 66
    ... and approve the strategy and financial plan for the next financial year. Additional meetings are held as required. The Board also meets with Executive Management to consider matters of strategic importance. Details of the current Directors, their qualifications, skills and experience are set out on...

  • Page 67
    ... goods or services supplied by the Qantas Group exceed 2 per cent of Qantas' annual consolidated gross revenue Qantas, as the principal Australian airline, has commercial relationships with most, if not all, major entities in Australia. As such, in determining whether a Non-Executive Director is...

  • Page 68
    ... The Board has a formal code of conduct, the Qantas Group Code of Conduct and Ethics, which sets out Qantas' expectations in a number of areas including compliance with laws, regulations and ethical standards continuous disclosure share trading political donations and prohibited payments compliance...

  • Page 69
    QANTAS ANNUAL REPORT 2013 The Principles and the core elements of the Qantas Group Code of Conduct and Ethics are detailed in the Qantas Group Business Practices Document which is available on the Corporate Governance page of the Qantas website. Qantas' Employee Share Trading Policy The Qantas ...

  • Page 70
    ...results and performance include impacts arising from a weakening global or Australian economy fluctuations in the price of aviation fuel increased competition from domestic and international airlines fluctuations in currency exchange rates performance of key aircraft and engine suppliers government...

  • Page 71
    ... Qantas Group's operational safety system, the QMS. The Safety, Health, Environment and Security Committee: » currently has five Members: the CEO and four Independent Non-Executive Directors » is chaired by Richard Goodmanson » has a written Charter which is available on the Corporate Governance...

  • Page 72
    ... financial position and performance of the Qantas Group in accordance with section 297 of the Corporations Act." THE BOARD REMUNERATES FAIRLY AND RESPONSIBLY The Qantas executive remuneration objectives and approach is set out in full in the Directors' Report (from page 77). Remuneration Committee...

  • Page 73
    QANTAS ANNUAL REPORT 2013 Directors' Report FOR THE YEAR ENDED 30 JUNE 2013 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 ...

  • Page 74
    Directors' Report continued FOR THE YEAR ENDED 30 JUNE 2013 DIRECTORS' MEETINGS The number of Directors' Meetings held (including Meetings of Committees of Directors) during 2012/2013 are as follows: Safety, Health, Environment and Security Committee1 Qantas Board Scheduled Meetings Directors ...

  • Page 75
    ... the Brookfield Prime Property Fund and the Multiplex European Property Fund, both of which are listed Australian registered managed investment schemes. Previously responsible entity for the Brookfield Australian Opportunities Fund, which was wound up on 30 October 2012. 2 Responsible entity for the...

  • Page 76
    Directors' Report continued FOR THE YEAR ENDED 30 JUNE 2013 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 2013 Number 2012 Number Leigh Clifford Alan Joyce Maxine Brenner Peter ...

  • Page 77
    ...30 June 2013: Number of Rights Name Testing Period Grant Date Value at Grant Date 2013 Net Vested 2013 Unvested 2013 Total 2012 Net Vested 2012 Unvested 2012 Total 2004/05 Performance Rights Plan 2005 Performance Rights Plan 2006 Performance Rights Plan 2007 Performance Rights Plan 2007 Performance...

  • Page 78
    ... Report for 2012/2013. This report sets out remuneration information for Non-Executive Directors, the Chief Executive Officer (CEO) and Executive Management. In considering this year's remuneration outcomes, the Board Remuneration Committee has balanced Qantas' under-performance to financial...

  • Page 79
    ... key measures which are explicitly aligned to the execution of the Qantas Group Strategy. For the 2012/13 STIP, the Board set the following scorecard of performance conditions: Strategic Objective Performance Measures Scorecard Weighting 1. Delivering sustainable returns to shareholders 2. Safety...

  • Page 80
    ... THE YEAR ENDED 30 JUNE 2013 Remuneration Report (Audited) continued Long Term Incentive The long term incentive plan at Qantas is known as the LTIP and involves the granting of Rights over Qantas shares. Participation is limited to Senior Executives of the Qantas Group. If performance conditions...

  • Page 81
    ... or indirectly, including any director (whether executive or otherwise) of that entity. The KMP for the 2012/2013 financial year includes some members of Executive Management. 1 EXECUTIVE REMUNERATION OBJECTIVES AND APPROACH In determining Executive remuneration, the Board aims to do the following...

  • Page 82
    ... approach will: » Motivate the CEO, Executive Management and the broader Executive team to pursue the long-term growth and success of Qantas » Demonstrate a clear relationship between pay and performance » Ensure an appropriate balance between fixed and at risk remuneration, reflecting the short...

  • Page 83
    QANTAS ANNUAL REPORT 2013 Remuneration Outcomes Table - CEO and Executive KMP (Non-statutory)1 STIP Outcomes 3 $'000 Base Pay - Cash FAR 2 Cash Bonus Deferred Award LTIP Outcomes 4 Rights Vested Sub-total Other Benefits5 Termination Payments Total Alan Joyce Chief Executive Officer Gareth Evans ...

  • Page 84
    ... Total Alan Joyce Chief Executive Officer Gareth Evans Chief Financial Officer Lesley Grant4 CEO Qantas Loyalty Simon Hickey CEO Qantas International Jayne Hrdlicka CEO Jetstar Group Lyell Strambi CEO Qantas Domestic Total 2013 2012 2013 2012 2013 2012 2013 2012 2013 2012 2013 2012 2013 2012...

  • Page 85
    ... » Jayne Hrdlicka assumed the role of CEO Jetstar Group » Lyell Strambi assumed the role of CEO Qantas Domestic The total base pay of the Executive Management team decreased due to the overall reduction in the number of Executive Management positions following the restructure. The FAR for each...

  • Page 86
    ... key measures of financial and operational performance in the Asian-based Jetstar branded airlines, as well as milestone targets in the set-up and growth of these airlines. 4. Transforming Qantas International » Strengthening networks and strategic alliances » Unit cost » Customer Experience...

  • Page 87
    ... by an investment grade credit rating. The measure is calculated as the Group's operating cash flow divided by the Group's net debt. The Group's net debt includes interest-bearing liabilities and the fair value of hedges related to debt less cash and aircraft security deposits and off-balance sheet...

  • Page 88
    ... Transforming Qantas International A strategic alliance with Emirates was announced and implemented during 2012/2013. An enhanced Asian network was implemented through Hong Kong and Singapore hubs. Enhancements to Asian alliances including expanded code-share with China Eastern Airlines. Unit cost...

  • Page 89
    QANTAS ANNUAL REPORT 2013 Annual Incentive also referred to as the Short Term Incentive Plan or STIP (continued) What was the STIP award for the CEO for the year ended 30 June 2013 and how was it calculated? Mr Joyce received an award under the 2012/13 STIP of $1,162,800. This award was calculated...

  • Page 90
    ... FOR THE YEAR ENDED 30 JUNE 2013 Remuneration Report (Audited) continued Long Term Incentive Plan also referred to as the LTIP (continued) Basket of Global Listed Airlines Up to one-half of the total number of Rights granted may vest based on the relative TSR performance of Qantas in comparison...

  • Page 91
    ...-employment benefit. Other long-term benefits The accrual of long service leave is included in other long-term benefits. Summary of Key Contract Terms as at 30 June 2013 Contract Details Alan Joyce Gareth Evans Lesley Grant Simon Hickey Jayne Hrdlicka Lyell Strambi FAR STIP "at target" opportunity...

  • Page 92
    Directors' Report continued FOR THE YEAR ENDED 30 JUNE 2013 Remuneration Report (Audited) continued Target Remuneration Mix FAR % STIP % LTIP % Alan Joyce Gareth Evans Lesley Grant Simon Hickey Jayne Hrdlicka Lyell Strambi 33 43 49 43 43 43 Performance-related Remuneration STIP Cash-based Share-...

  • Page 93
    ...Expense by Plan STIP Awards Executives 2010/11 $'000 2011/12 $'000 2012/13 $'000 LTIP Awards 2012-20141 $'000 2013-20152 $'000 Total $'000 2014 $'000 2015 $'000 2016 $'000 Total $'000 Future Expense by Financial Year Alan Joyce Gareth Evans Lesley Grant Simon Hickey Jayne Hrdlicka Lyell Strambi 32...

  • Page 94
    ... Share-based Payment $000 Total Alan Joyce Chief Executive Officer Gareth Evans Chief Financial Officer Lesley Grant CEO Qantas Loyalty Simon Hickey CEO Qantas International Jayne Hrdlicka CEO Jetstar Group Lyell Strambi CEO Qantas Domestic Total 2013 2012 2013 2012 2013 2012 2013 2012 2013 2012...

  • Page 95
    QANTAS ANNUAL REPORT 2013 Employee Share Trading Policy The Qantas Code of Conduct and Ethics contains Qantas' Employee Share Trading Policy (Policy). The Policy prohibits employees from dealing in Qantas securities (or securities of other listed entities) while in possession of material non-public...

  • Page 96
    ... Remuneration for the Year Ended 30 June 2013 - Non-Executive Directors Short-Term Employee Benefits $'000 Cash FAR Non-Cash Benefits Sub-total Post-Employment Benefits Superannuation Travel Sub-total Total Leigh Clifford Chairman Peter Cosgrove Non-Executive Director 1,2 2013 2012 2013 2012 2013...

  • Page 97
    ...operations through the Safety, Health, Environment and 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 exposures...

  • Page 98
    ... KPMG Sydney 6 September 2013 Duncan McLennan 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 and the Financial Report...

  • Page 99
    QANTAS ANNUAL REPORT 2013 Financial Report FOR THE YEAR ENDED 30 JUNE 2013 CONTENTS Consolidated Income Statement Consolidated Statement of Comprehensive Income Consolidated Balance Sheet Consolidated Statement of Changes in Equity Consolidated Cash Flow Statement Notes to the Financial Statements...

  • Page 100
    Consolidated Income Statement FOR THE YEAR ENDED 30 JUNE 2013 Qantas Group Notes 2013 $M 2012 $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 Depreciation and amortisation ...

  • Page 101
    ... YEAR ENDED 30 JUNE 2013 Qantas Group 2013 $M 2012 $M Statutory profit/(loss) for the year Effective portion of changes in fair value of cash flow hedges, net of tax Transfer of hedge reserve to the Income Statement, net of tax Foreign currency translation of controlled entities Foreign currency...

  • Page 102
    Consolidated Balance Sheet AS AT 30 JUNE 2013 Qantas Group Notes 2013 $M 2012 $M CURRENT ASSETS Cash and cash equivalents Receivables Other financial assets Inventories Assets classified as held for sale Other Total current assets NON-CURRENT ASSETS Receivables Other financial assets Investments ...

  • Page 103
    ... ANNUAL REPORT 2013 Consolidated Statement of Changes in Equity FOR THE YEAR ENDED 30 JUNE 2013 Employee Qantas Group $M Issued Capital Treasur y Shares Compensation Reserve Hedge Reserve Foreign Currency Translation Reserve Retained Earnings Noncontrolling Interests Total Equity Balance...

  • Page 104
    ... Statement of Changes in Equity continued FOR THE YEAR ENDED 30 JUNE 2013 Employee Compensation Reserve Foreign Currency Translation Reserve Qantas Group $M Issued Capital Treasur y Shares Hedge Reserve Retained Earnings Noncontrolling Interests Total Equity Balance as at 1 July 2011 TOTAL...

  • Page 105
    QANTAS ANNUAL REPORT 2013 Consolidated Cash Flow Statement FOR THE YEAR ENDED 30 JUNE 2013 Qantas Group Notes 2013 $M 2012 $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 106
    ... 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 Statements for the year ended 30 June 2013 comprise Qantas and its controlled entities...

  • Page 107
    ... of Foreign Operations Assets and liabilities of foreign operations, including controlled entities and investments in associates and jointly controlled entities, are translated to the functional currency at the rates of exchange prevailing at balance date. The income statements of foreign operations...

  • Page 108
    ... for hedge accounting are classified as "ineffective" and recognised immediately in the Consolidated Income Statement. Fair Value Calculations The fair value of financial instruments traded in active markets is based on quoted market prices at balance date. The fair value of financial instruments...

  • Page 109
    ...benefit will be realised. Qantas provides for income tax in both Australia and overseas jurisdictions where a liability exists. (J TAX CONSOLIDATION Qantas and its Australian wholly-owned controlled entities, trusts and partnerships are part of a tax consolidated group. As a consequence, all members...

  • Page 110
    ... with the Qantas Group's accounting policies. Impairment losses on initial classification as held for sale and subsequent gains or losses on remeasurement are recognised in the Consolidated Income Statement. (P PROPERTY, PLANT AND EQUIPMENT Owned Assets Items of property, plant and equipment are...

  • Page 111
    ... the Qantas Group, which differentiate these aircraft from owned assets. Leases are deemed to be non-cancellable if significant financial penalties associated with termination are anticipated. Operating Leases Rental payments under operating leases are charged to the Consolidated Income Statement on...

  • Page 112
    Notes to the Financial Statements continued FOR THE YEAR ENDED 30 JUNE 2013 1. Statement of Significant Accounting Policies continued With respect to operating lease agreements, where the Qantas Group is required to return the aircraft with adherence to certain maintenance conditions, provision is ...

  • Page 113
    ... of future benefit that employees have earned in return for their service in the current and prior periods, which is discounted to determine its present value and the fair value of any plan assets is deducted. The discount rate used is the yields at balance sheet date on State Government Bonds which...

  • Page 114
    ... of the Qantas Group which are dependent on the Jetstar fleet and the Jetstar Brand being the Jetstar passenger flying businesses (including Jetstar Group's investments in Jetstar branded airlines in Asia). Corporate/Unallocated Costs associated with the centralised management and governance of the...

  • Page 115
    ... and net finance costs. 2012 $M Qantas Qantas Domestic International Qantas Loyalty Qantas Freight Eliminations Total Qantas Brands Jetstar Group Corporate/ Unallocated Eliminations Consolidated REVENUE AND OTHER INCOME External segment revenue Intersegment revenue Total segment revenue and...

  • Page 116
    ... flight or provided the relevant service. For Qantas Airlines, where a multi-sector ticket covering international and domestic travel is sold, the revenue is reported by Qantas Domestic and Qantas International on a pro-rata basis using an industry standard allocation process. » Net freight revenue...

  • Page 117
    ... non-statutory measure, and is the primary reporting measure used by the Qantas Group's chief operating decision-making bodies, being the Chief Executive Officer, Group Management Committee and the Board of Directors. The objective of measuring and reporting Underlying PBT is to provide a meaningful...

  • Page 118
    ...intangible assets Net impairment of investments Write down of inventory Other Net profit on disposal of investment in jointly controlled entity Underlying PBT 192 1 As disclosed in Note 3, net impairment of property, plant and equipment for the year ended 30 June 2013 was $93 million (2012: $157...

  • Page 119
    ... Qantas Group's flights which are reported as net passenger revenue in the Consolidated Income Statement. Frequent Flyer marketing revenue is net of intra-group marketing revenue within the Qantas Group. 3 Net impairment of property, plant and equipment arises from assets classified as held for sale...

  • Page 120
    ...) 5. Net Finance Costs Qantas Group 2013 $M 2012 $M FINANCE INCOME Interest income on financial assets measured at amortised cost Interest income from jointly controlled entity Unwind of discount on receivables Total finance income FINANCE COSTS Interest expense on financial liabilities measured...

  • Page 121
    ... ANNUAL REPORT 2013 6. Income Tax Qantas Group 2013 $M 2012 $M RECOGNISED IN THE CONSOLIDATED INCOME STATEMENT Current income tax expense Current year Adjustments for prior year Deferred income tax expense Origination and reversal of temporary differences Benefit of tax losses recognised Total...

  • Page 122
    ... in relation to the year ended 30 June 2013. For the year ended 30 June 2013 no dividends (2012: $1 million) were declared to non-controlling interest shareholders by non-wholly-owned controlled entities. (B FRANKING ACCOUNT Qantas Group 2013 $M 2012 $M Total franking account balance at 30 per cent...

  • Page 123
    QANTAS ANNUAL REPORT 2013 10. Cash and Cash Equivalents Qantas Group 2013 $M 2012 $M Cash balances Cash at call Short-term money market securities and term deposits Total cash and cash equivalents 265 166 2,398 2,829 343 245 2,810 3,398 Short-term money market securities of $14 million (2012: $...

  • Page 124
    ... YEAR ENDED 30 JUNE 2013 12. Inventories Qantas Group 2013 $M 2012 $M Engineering expendables Consumable stores Work in progress Total inventories 301 56 7 364 315 52 9 376 13. Assets and Liabilities Classified as Held for Sale Qantas Group 2013 $M 2012 $M Assets Property, plant and equipment...

  • Page 125
    ... Australia Japan Hong Kong Vietnam Indonesia Thailand Jetstar Pacific Airlines Aviation Joint Stock Company PT Holidays Tours & Travel Tour East (T.E.T) Ltd 1 Legislative changes in Fiji culminated on 29 May 2012 with the Qantas Group removing its director representatives from the Board of Air...

  • Page 126
    ...Statements continued FOR THE YEAR ENDED 30 JUNE 2013 15. Investments Accounted for Using the Equity Method continued Qantas Group 2013 $M 2012 $M RESULTS OF ASSOCIATES Revenues Expenditure Loss before income tax expense Income tax expense Net (loss)/profit of associates Qantas Group's share of net...

  • Page 127
    QANTAS ANNUAL REPORT 2013 Qantas Group 2013 $M 2012 $M RESULTS OF JOINTLY CONTROLLED ENTITIES Revenues Expenditure Profit before income tax expense Income tax expense Net profit of jointly controlled entities Qantas Group's share of net profit of jointly controlled entities MOVEMENTS IN CARRYING ...

  • Page 128
    ... Financial Statements continued FOR THE YEAR ENDED 30 JUNE 2013 16. Property, Plant and Equipment Qantas Group 2013 $M 2012 $M Freehold land - owned At cost Total freehold land Buildings - owned At cost Less: accumulated depreciation Buildings - leased At cost Less: accumulated depreciation Total...

  • Page 129
    ... Total aircraft spare parts at net book value Aircraft deposits At cost Total aircraft deposits Total property, plant and equipment At cost Less: accumulated depreciation Total property, plant and equipment at net book value Qantas Group 2013 $M Acquisition of Controlled Entity Transferred to Assets...

  • Page 130
    ... at net book value Brand names and trademarks At cost Total brand names and trademarks Customer contracts At cost Less: accumulated amortisation Total customer contracts at net book value Total intangible assets Qantas Group 2013 $M Opening Net Book Value Acquisition of Controlled Entity 197...

  • Page 131
    ...Qantas Group 2013 $M Recognised in Opening the Consolidated Balance Income Statement Acquisition of Controlled Entity Closing Balance Reconciliations Inventories Property, plant and equipment and intangible assets Payables Revenue received in advance Interest-bearing liabilities Other financial...

  • Page 132
    ... Financial Statements continued FOR THE YEAR ENDED 30 JUNE 2013 19. Payables Qantas Group 2013 $M 2012 $M Trade creditors Other creditors and accruals Total payables 655 1,204 1,859 645 1,231 1,876 20. Revenue Received in Advance Qantas Group 2013 $M 2012 $M CURRENT Unavailed passenger revenue...

  • Page 133
    ... except for employee benefits, are set out below: Qantas Group 2013 $M Opening Balance Provisions Made Provisions Utilised Unwind of Discount Closing Balance Noncurrent Other 1 Current Total Reconciliations Onerous contracts Make good on leased assets Insurance, legal and other Total 2012 $M 14...

  • Page 134
    ... exchange differences arising from the translation of the Financial Statements of foreign controlled entities and associates, as well as from the translation of liabilities that form part of the Qantas Group's net investment in a foreign controlled entity. 49 123 (44) 128 48 41 (53) 36 24. Cash...

  • Page 135
    ... analyst expectations. The US$:A$ exchange rate is assumed to be $0.96 (2012: $0.97). Fuel Currency 25. 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 136
    ... to the Financial Statements continued FOR THE YEAR ENDED 30 JUNE 2013 25. Share-based Payments continued (A LONG TERM INCENTIVE PLAN (LTIP The LTIP is specifically targeted to Senior Executives in key roles or other participants who have been identified as high potential Executives. All Rights...

  • Page 137
    ... of Comprehensive Income, Consolidated Balance Sheet and the Consolidated Statement of Changes in Equity. (A OTHER FINANCIAL ASSETS AND LIABILITIES Qantas Group 2013 $M 2012 $M NET OTHER FINANCIAL ASSETS/(LIABILITIES Derivatives Designated as cash flow hedges Designated as fair value hedges De...

  • Page 138
    ... 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 Consolidated Income Statement for the financial period as it does not form part of a hedging relationship. Qantas Group 2013 $M 2012 $M 45 (11...

  • Page 139
    ...investments in jointly controlled entities (Less)/add: net gain/(loss) on disposal of property, plant and equipment Add: changes in fair value of financial instruments Less: amortisation of deferred lease benefits Less: interest payments on liabilities held at fair value (Less)/add: realised hedging...

  • Page 140
    ... the Financial Statements continued FOR THE YEAR ENDED 30 JUNE 2013 27. Notes to the Cash Flow Statement continued (B FINANCING FACILITIES The total amount of financing facilities available to the Qantas Group as at balance date is detailed below: Qantas Group 2013 $M 2012 $M FINANCING FACILITIES...

  • Page 141
    ... its fair value less costs to sell. 29. Commitments (A FINANCE LEASE AND HIRE PURCHASE COMMITMENTS Qantas Group 2013 $M 2012 $M AS LESSEE Finance lease and hire purchase liabilities included in the Consolidated Financial Statements Aircraft and engines - payable: Not later than one year Later than...

  • Page 142
    Notes to the Financial Statements continued FOR THE YEAR ENDED 30 JUNE 2013 29. Commitments continued (B OPERATING LEASE COMMITMENTS Qantas Group 2013 $M 2012 $M AS LESSEE Non-cancellable operating lease commitments not provided for in the Consolidated Financial Statements Aircraft - payable: Not ...

  • Page 143
    ... Under the plans, employees are entitled to retirement benefits determined, at least in part, by reference to a formula based on years of membership and salary levels. As at 30 June 2013 the total plan assets include shares in Qantas Airways Limited with a fair value of $11 million (2012: $9 million...

  • Page 144
    ... Qantas Group 2013 $M 2012 $M CHANGES IN THE PRESENT VALUE OF DEFINED BENEFIT OBLIGATION Opening defined benefit obligation Current service cost Interest cost Actuarial (gains)/losses Exchange differences on foreign plans Benefits paid Liabilities acquired in a business combination Closing defined...

  • Page 145
    ...Note 22) Net asset recognised in the Consolidated Balance Sheet 2,367 2,426 (59) (337) 278 284 (6) 278 2,082 2,561 (479) (772) 293 293 - 293 Qantas Group 2013 $M 2012 $M 2011 $M 2010 $M 2009 $M HISTORICAL AMOUNTS Fair value of plan assets Present value of defined benefit obligation Deficit Opening...

  • Page 146
    ... Executive Officer Jetstar Group Lyell Strambi, Group Executive Qantas Airlines Domestic (B REMUNERATION OF KEY MANAGEMENT PERSONNEL The aggregate remuneration of the KMP of the Qantas Group is set out below: Qantas Group 2013 $000 2012 $000 Short-term employee benefits Post-employment benefits...

  • Page 147
    QANTAS ANNUAL REPORT 2013 (i) Short Term Incentive Plan (STIP) Key Management Personnel Opening Balance Number Granted Number Forfeited Number Vested and Transferred Closing Balance Alan Joyce Bruce Buchanan Gareth Evans Lesley Grant Rob Gurney 2 1 2013 Total 2012 Total 2013 Total 2012 Total 2013...

  • Page 148
    ... Statements continued FOR THE YEAR ENDED 30 JUNE 2013 32. Related Parties continued (iii) Performance Share Plan (PSP) Opening Balance Number Granted Number Forfeited Number Vested and Transferred Closing Balance Alan Joyce Bruce Buchanan1 Gareth Evans Lesley Grant Rob Gurney 2 2013 Total 2012...

  • Page 149
    ... Japan and Hong Kong for the provision of business services to enable the low cost airline to operate a consistent customer experience for the Jetstar brand Prior to the sale of AUX Investments Pty Ltd and its controlled entities (AUX Investments Group) and the consolidation of AaE, the Qantas Group...

  • Page 150
    ... the Financial Statements continued FOR THE YEAR ENDED 30 JUNE 2013 32. Related Parties continued Transactions and balances with associates and jointly controlled entities are included in the Consolidated Financial Statements as follows: Qantas Group Notes 2013 $M 2012 $M Revenue and other income...

  • Page 151
    QANTAS ANNUAL REPORT 2013 Qantas Group Ownership Interest Consolidated Entities Footnote ACN/ABN Country of Incorporation 30 June 2013 % 30 June 2012 % First Brisbane Airport Proprietary Limited Second Brisbane Airport Proprietary Limited First Brisbane Airport Unit Trust Second Brisbane Airport ...

  • Page 152
    ... the Financial Statements continued FOR THE YEAR ENDED 30 JUNE 2013 continued Qantas Group Ownership Interest Consolidated Entities Footnote ACN/ABN Country of Incorporation 30 June 2013 % 30 June 2012 % Q Catering Cairns Pty Limited Q Catering Riverside Pty Limited Airport Infrastructure Finance...

  • Page 153
    ... owned and effectively controlled by Singapore nationals. Notwithstanding this, the Qantas Group is required to consolidate Newstar Investment Holdings Pte Ltd and its controlled entities in the Qantas Group Financial Statements. This company was incorporated on 4 December 2012. Qantas disposed of...

  • Page 154
    ... are carried at cost less any accumulated impairment » Dividends received from investments in associates and jointly controlled entities are recognised as income Qantas Group 2013 $M 2012 $M CONDENSED INCOME STATEMENT Statutory profit/(loss) before income tax expense Income tax (expense)/benefit...

  • Page 155
    QANTAS ANNUAL REPORT 2013 Consolidated 2013 $M 2012 $M BALANCE SHEET Current assets Cash and cash equivalents Receivables Other financial assets Inventories Assets classified as held for sale Other Total current assets Non-current assets Receivables Other financial assets Investments in controlled...

  • Page 156
    ... THE YEAR ENDED 30 JUNE 2013 35. Financial Risk Management A financial instrument is any contract that gives rise to both 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...

  • Page 157
    ... Board. For the year ended 30 June 2013, other financial assets and liabilities include fuel derivatives totalling $17 million (asset) (2012: $6 million (asset)). These are recognised at fair value in accordance with AASB 139. (iv) Sensitivity on Interest Rate, Foreign Exchange and Fuel Price Risk...

  • Page 158
    Notes to the Financial Statements continued FOR THE YEAR ENDED 30 JUNE 2013 35. Financial Risk Management continued Qantas Group Profit Before Tax 2013 $M 2012 $M Hedge Reserve 2013 $M 2012 $M 100bps increase in interest rates Variable rate interest-bearing instruments (net of cash) Derivatives ...

  • Page 159
    ... the Consolidated Balance Sheet in accordance with AASB 139. Carrying Amount Qantas Group Notes 2 0 13 $M 2 0 12 $M Fair Value 2 0 13 $M 2 0 12 $M Financial assets Cash and cash equivalents Trade debtors Sundry debtors Other loans Other financial assets Other investments Financial liabilities Trade...

  • Page 160
    ... of dividend payments. The quantum and timing of this will depend on trading results, prevailing market conditions, the maintenance of an investment grade credit rating and the level of capital expenditure commitments. During the year ended 30 June 2013 the Qantas Group invested $1.3 billion (2012...

  • Page 161
    ... REPORT 2013 37. Parent Entity Disclosures for Qantas Airways Limited (Qantas) (A CONDENSED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2013 Qantas 2013 $M 2012 $M CONDENSED INCOME STATEMENT Revenue and other income Expenditure Statutory profit/(loss) before income tax expense and net finance...

  • Page 162
    ... the Financial Statements continued FOR THE YEAR ENDED 30 JUNE 2013 37. Parent Entity Disclosures for Qantas Airways Limited (Qantas) continued Qantas 2013 $M 2012 $M CONDENSED STATEMENT OF COMPREHENSIVE INCOME Statutory profit/(loss) for the year Effective portion of changes in fair value of cash...

  • Page 163
    ... The Qantas Group's accounting policy utilises the 'corridor approach' to account for actuarial gains and losses with respect to defined benefit superannuation plans. Upon adoption of the amended AASB 119 for the 30 June 2014 Financial Statements, the opening Consolidated Balance Sheet (30 June 2012...

  • Page 164
    ... share of assets, liabilities, revenue and expenses. Joint ventures arise where the joint venturer has rights to the net assets of the arrangement and therefore equity accounts for its interest. This standard will become mandatory for the Qantas Group's 30 June 2014 Financial Statements. The Group...

  • Page 165
    ... THE YEAR ENDED 30 JUNE 2013 1 In the opinion of the Directors of Qantas Airways Limited (Qantas): (a) The Consolidated Financial Statements and Notes set out on pages 98 to 162, and the Remuneration Report set out on pages 76 to 94 in the Directors' Report, are in accordance with the Corporations...

  • Page 166
    ... Report FOR THE YEAR ENDED 30 JUNE 2013 To the Members of Qantas Airways Limited REPORT ON THE FINANCIAL REPORT We have audited the accompanying Financial Report of Qantas Airways Limited (Qantas), which comprises the Consolidated Balance Sheet as at 30 June 2013, and Consolidated Income Statement...

  • Page 167
    ... Shares National Australia Bank Limited1 Franklin Resources, Inc.2 The Capital Group Companies, Inc.3 Commonwealth Bank of Australia4 1 2 3 4 Substantial shareholder notice dated 13 August 2013. Substantial shareholder notice dated 8 August 2013. Substantial shareholder notice dated 1 August 2012...

  • Page 168
    ...Customer Satisfaction Net Promoter Score On Time Performance Customer Feedback Customer Experience Initiatives Measures Sustainability Statistics and Notes, Qantas Annual Report 2013 » Underlying Profit before Tax (PBT) » Net Underlying Unit Cost » Free Cash Flow » Average Fleet Age » Total...

  • Page 169
    QANTAS ANNUAL REPORT 2013 The Qantas Group's vision is 'Always the first choice for customers in the markets we serve'. The Group Strategy underpins our vision and positions the Group towards delivering sustainable returns to our shareholders. The Qantas Sustainability Review 2013 provides a ...

  • Page 170
    ... half year of positive net free cash flow and reflects the Group's focus on retaining its investment grade credit rating by strengthening the balance sheet through disciplined capital management. The Group reported negative free cash flows between 2008/2009 and 2011/2012 as it entered a growth...

  • Page 171
    ... employee health and wellbeing, the level of staff engagement and productivity. Additionally, low injury rates and absenteeism are generally linked to positive trends in staff morale and productivity. Key Performance Indicators Unit 2013 2012 Absenteeism per annum Qantas Jetstar Qantas Freight...

  • Page 172
    ..., whose services are targeted at premium business customers. Key Performance Indicators Unit 2013 2012 Australian domestic on time departures Qantas Airlines QantasLink Jetstar Qantas Group Australian domestic on time arrivals Qantas Airlines QantasLink Jetstar Qantas Group Australian domestic...

  • Page 173
    ... workforce brings. The Group is committed to providing all employees with equal access to the opportunities that are available at work. Key Performance Indicators Unit 2013 2012 Percentage of women Percentage of women in senior positions Percentage of women Directors on the Qantas Board Percentage...

  • Page 174
    .... Key Performance Indicators Unit 2013 2012 Number of Indigenous Australian employees The number of Indigenous Australian employees remained consistent compared to 2011/2012. # 354 354 The Qantas Group has undergone business transformation in 2012/2013. This has resulted in the contraction of...

  • Page 175
    ... during 2012/2013 and the acquisition of Australian air Express during the year. The Qantas Group has achieved 3.2 per cent improvement in aviation fuel efficiency against the 2008/2009 baseline. Fuel efficiency is a long-term commitment as the Group executes its strategic objectives and transforms...

  • Page 176
    ... to the community through national export revenue (bringing overseas visitors into Australia) and to domestic and regional tourism (carrying passengers within Australia). Key Performance Indicators Unit 2013 2012 Tourism spending by Qantas Group passengers National export revenue Domestic traveller...

  • Page 177
    ... operating cash flows net of investing cash flows. Scope: The Consolidated Financial Statements for the year ended 30 June 2013 comprise Qantas and its controlled entities and the Qantas Group's interest in associates and jointly controlled entities. Average Fleet Age - Scheduled Passenger Fleet The...

  • Page 178
    ...Qantas Group in Australia and overseas as at 30 June. Part-time positions include permanent and temporary part-time positions. Part-time employees are defined as those whose assigned working hours (as per contract) are lower than the position's standard working hours. Number of Indigenous Australian...

  • Page 179
    ... as the number of Qantas Group domestic passengers for the financial year multiplied by the estimated average expenditure per visitor of $674 (Source: Tourism Australia's March 2013 National Visitor Survey (latest available data)) (2012: $681 (Source: Tourism Australia's March 2012 National Visitor...

  • Page 180
    ... Statistics and Notes section (the Sustainability Section) of the Qantas Annual Report (the Report) for the year ended 30 June 2013. Directors' and Management's responsibilities for the Sustainability Section The Directors and Management of Qantas are responsible for the preparation and...

  • Page 181
    QANTAS ANNUAL REPORT 2013 Independence In conducting our limited assurance engagement, we have complied with the ethical requirements, including independence requirements of the International Ethics Standards Board for Accountants and the Australian Accounting Professional and Ethical Standards ...

  • Page 182
    ....qantas.com QANTAS SHARE REGISTRY Link Market Services Limited Level 12 680 George Street Sydney NSW 2000 Australia or Locked Bag A14 Sydney South NSW 1235 Australia Telephone +61 1800 177 747 (Toll free within Australia) Facsimile +61 2 9287 0303 Email [email protected] STOCK EXCHANGE Australian...

  • Page 183
    ... and made Carbon Neutral. The cover of this annual report is printed on Mohawk Navajo, an environmentally responsible paper manufactured under strict environmental management systems with Elemental Chlorine Free pulps sourced form well-managed forests combined with 20% post-consumer waste. Mohawk...

  • Page 184
    QANTAS AIRWAYS LIMITED ABN 16 009 661 901