Qantas 2004 Annual Report Download - page 15

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Qantas Annual Report 2004 13Spirit of Australia
The Group's domestic strategy is to hold a market share in
excess of 65 per cent, maintain a yield premium over Virgin
Blue and compete profitably in price sensitive leisure
markets.
This strategy has been successful in its aim to provide a
co-ordinated network and capacity while delivering the
most appropriate product, service and economics for each
network segment. The three airlines, including one month
of Jetstar operations, achieved earnings before interest and
tax of $539.3 million, up 141.8 per cent from $223.0 million
last year.
The full-service Qantas Domestic product features:
two-class aircraft on all routes;
complimentary inflight meals and entertainment;
the extensive network of Qantas Club lounges; and
high frequency Cityflyer services between Sydney,
Melbourne, Brisbane, Canberra, Adelaide and Perth
that include:
priority departure gates nearest to airport security
screening and Qantas Club lounges;
free bar service after 4pm during the week;
complimentary newspaper for early morning flights
on weekdays; and
dedicated baggage carousels.
Qantas Domestic introduced a number of new non-stop
services during the year, including:
Canberra-Perth from February 2004, reducing travel
time by more than an hour;
Sydney-Broome from April 2004;
Perth-Cairns from April 2004; and
Melbourne-Ayers Rock from June 2004.
In addition, Qantas Domestic:
increased intra-Western Australia capacity through the
use of larger aircraft; and
introduced seasonal Perth-Kununurra services between
May and September 2004.
Investment
Qantas Domestic also continued to invest in new aircraft and
product enhancements including:
the announcement in March 2004 that an additional five
Next Generation Boeing 737-800 aircraft would be
acquired;
completion of the refurbishment of the Boeing 737-400
fleet in January 2004;
completion of an upgraded Qantas Club lounge at the
Perth domestic terminal;
completion of improvements to the Qantas Club lounge
at Gold Coast Airport;
the commencement of the refurbishment of the Qantas
Club lounge in Canberra;
improvements to the QuickCheck self-service check-in
product including same day return check-in (within 12
hours of first departure) and the ability to move a
booking to an earlier flight;
trialling of a new, advanced SMS product to provide the
quickest check-in option for domestic customers in
Australia; and
launching a new domestic inflight product in late
August 2004, featuring improved meal services
and greater variety to better meet customer needs.
Frequent Flyer Program and qantas.com
Qantas Frequent Flyer program members redeemed
3.3 million award seats in 2003/04, an increase of six per
cent over 2002/03. Program enhancements during the year
included more information for members on flight award
opportunities and easier navigation at qantas.com.
Members can earn points on more than 5,500 flights offered
by Qantas each week, by flying with 26 partner airlines
(including oneworld alliance partners) and by using products
and services offered by more than 100 non-airline partners
including financial products, accommodation and car hire.
Members can use points for Award flights with Qantas and
partner airlines, upgrades on the Qantas international and
domestic networks, hotel stays, car rentals and Qantas Club
memberships.
With more than 5.5 million visits each month, qantas.com
remained Australia's most popular travel website. More than
30 per cent of domestic bookings are now made via
qantas.com and during the year a major infrastructure
upgrade was completed to support future growth.
On-Time Performance
A major achievement during the year was the significant
improvement in the Group's domestic on-time performance.
The Federal Government's Department of Transport and
Regional Services began reporting on-time performance
statistics for all Australia's domestic airlines in November
2003. Qantas, QantasLink and Jetstar have consistently
achieved on-time arrival rates of around 90 per cent
(and often better than 90 per cent). This is excellent by
world standards
Qantas Domestic
THE QANTAS GROUP OPERATES THREE DOMESTIC FLYING BUSINESSES –
THE FULL-SERVICE QANTAS DOMESTIC AIRLINE, THE REGIONAL CARRIER
QANTASLINK AND THE NEW LOW COST CARRIER JETSTAR.