Qantas 2007 Annual Report Download - page 56

54 Qantas |Annual Report 2007
Directors’ Report
for the year ended 30 June 2007
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 2007 and the Independent Audit Report thereon.
Directors
The Directors of Qantas at any time during or since the end of the year are:
Margaret Jackson, AC Peter Cosgrove, AC, MC
Geoff Dixon Patricia Cross
Peter Gregg Garry Hounsell
Paul Anderson James Packer
Leigh Clifford John Schubert
(appointed 9 August 2007) James Strong, AO
Mike Codd, AC (appointed 1 July 2006)
Details of Directors, their qualifications, experience and any special
responsibilities, including Qantas Committee Memberships, are set out
on pages 40 to 43.
Principal Activities
The principal activities of the Qantas Group during the course of the year
were the operation of international and domestic air transportation services,
the provision of time definite freight services, the sale of international and
domestic holiday tours and associated support activities including flight
training, catering, passenger and ground handling and engineering and
maintenance. The launch of Jetstar International was the only significant
change in the nature of the activities of the Qantas Group during the year.
Dividends
The Directors declared a final dividend of $297.7 million (final dividend of
15 cents per share) for the year ended 30 June 2007 (2006: final dividend
of 11.0 cents per share). The final dividend will be fully franked and follows
a fully franked special interim dividend of $297.7 million (15.0 cents per
share), which was paid during the year.
Review of Operations and State of Affairs
A review of, and information about, the Qantas Group’s operations,
including the results of those operations and changes in the state of affairs
of the Qantas Group during the year together with information about the
financial position of the Qantas Group appears on pages 10 to 39. In the
opinion of the Directors, there were no other significant changes in the state
of affairs of the Qantas Group that occurred during the year under review.
Events Subsequent to Balance Date
On 2 July 2007, Qantas acquired 67.27 per cent of the equity of DPEX
Transport Group Pte Ltd (DPEX) as described in Note 32. Qantas holds an
option over the remaining 32.73 per cent of DPEX and intends to exercise
this option on 31 August 2007.
On 9 July 2007, Qantas announced it would purchase 20 additional B787
Dreamliners taking total firm orders to 65. This takes total capital
expenditure commitments entered into post 30 June 2007 to $3.5 billion.
Qantas acquired 18.0 per cent of Pacific Airlines Joint Stock Aviation
Company (Pacific Airlines), a low cost carrier in Vietnam on 31 July 2007
for US$30 million. Qantas will equity account for Pacific Airlines as an
associate from 31 July 2007. Qantas has the ability to acquire up to
30.0 per cent of the equity of Pacific Airlines in the period through
to March 2010.
As a result of oil and jet fuel price increases over recent months, Qantas
announced on 1 August 2007 that it would increase international fuel
surcharges for tickets issued on or after 9 August 2007. Should fuel prices
drop in future, Qantas will reduce the surcharges as on previous occasions.
On 16 August 2007, Qantas announced its intention to undertake
an on-market buy-back of Qantas shares as described in Note 32.
Contingent liability information is disclosed in Note 22.
There has not arisen since the end of the year and the date of this
Directors’ Report any other matter or circumstance that has significantly
affected or may significantly affect the Qantas Group’s operations, results
of those operations or state of affairs in future years.
Likely Developments
Further information about the likely developments in the operations of the
Qantas Group in future years and the expected results of those operations
has been omitted from this Directors’ Report because disclosure of the
information is likely to result in unreasonable prejudice to the Qantas
Group. Further information about the Qantas Group’s business strategies
and its prospects for future years has been omitted from this Directors’
Report because disclosure of the information is likely to result in
unreasonable prejudice to the Qantas Group.
Directors’ Meetings
The number of Directors’ Meetings attended and held during the year are as follows:
Qantas Board
Audit
Committee
Safety,
Environment &
Security Committee
Remuneration
Committee
Nominations
Committee
Scheduled
Meetings
Unscheduled
Meetings1Sub-Committee1
Directors Attended Held2Attended Held2Attended Held2Attended Held2Attended Held2Attended Held2Attended Held2
Margaret Jackson 9 9 12 15 4 4 3343
347 4711
Geoff Dixon 9 9 15 15 4 4 234444
37––
Peter Gregg 9 9 15 15 3 4 434––––––
Paul Anderson 9 9 15 15 2 4 – – – – 7 7 – –
Mike Codd 991415444444––––
Peter Cosgrove99121524––441
37––
Patricia Cross 9 9 15 15 4 4 3 4 – – 7 7 – –
Garry Hounsell 9 9 14 15 4 4 4 4 2341
37––
James Packer 9 9 15 15 4 4 – – – – – – – –
John Schubert 99151514––44––11
James Strong 9 9 15 15 4 4 – – – – 747– –
Meetings held in connection with the Airline Partners Australia Offer.
Reflects the number of Meetings held during the time that the Director held office during the year.
Attended Meetings in an ex-officio capacity.
James Strong was appointed Chairman of the Remuneration Committee on 19 July 2006. Mr Strong attended one Meeting in an ex-officio capacity and the remainder as Committee Chairman.
Margaret Jackson attended one Meeting as Committee Chairman and the remainder in an ex-officio capacity.
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