Qantas 2009 Annual Report Download - page 22

Qantas is Australia’s iconic airline, a
recognised global aviation leader in safety,
premium long haul travel, customer service
and innovation. With unrivalled national
and global network reach, Qantas is
Australia’s carrier of choice for premium
leisure and corporate travellers. During the
year, Engineering, Airports, Catering,
Flight Operations, Operations Planning and
Control, and Associated Businesses were
regrouped into a single Airline Operations
unit, signalling a renewed focus on core
aviation excellence.
INTERNATIONAL
Qantas’ international operations were
adversely affected by the economic
downturn with considerably weaker yield
and premium load factors in the second half,
compounded by intensifying competition
and the outbreak of H1N1 Infl uenza 09.
Yet it was a year of signifi cant
achievements and milestones – the delivery
and entry into service of the fi rst three
Qantas Airbus A380s, the introduction of
direct services to South America and the
continued expansion of the airline’s newest
cabin: Premium Economy.
A380
The successful entry into service of the A380
was the culmination of seven years’ hard
work and preparation across the Qantas
Group – from Engineering, Airports and IT
through to Cabin Crew, Flight Training and
Product Development.
On 30 September 2008, the fi rst Qantas
A380 was named Nancy-Bird Walton, in
honour of the pioneer Australian aviatrix.
When Nancy-Bird passed away on 13 January
2009, the Nancy-Bird Walton performed a
tribute fl yover of Sydney on the morning of
her State funeral.
The inaugural commercial A380 service
operated on 20 October 2008 between
Melbourne and Los Angeles and Qantas
launched A380 services to London via
Singapore on 16 January 2009. The second
and third A380s entered the fl eet on 16 and
27 December 2008 respectively, with the
fourth arriving in August 2009.
Qantas Key Figures 2008/09 2007/08
Revenue ($m) 11,710 12,971
Underlying Earnings
Before Interest and Tax ($m) 4 1,358
Earnings Before
Interest and Tax ($m) (77) 1,230
Passengers (millions) 27.7 29.4
Employees
(Full Time Equivalent) 27,636 29,573
The delivery of the fourth A380 allows
Qantas to increase its scheduled A380 services
to fi ve return Sydney-Singapore-London
services per week, four return Sydney-Los
Angeles services per week and two return
Melbourne-Los Angeles services per week.
By November 2009, Qantas will operate daily
A380 services to London and Los Angeles
from Sydney, and will increase Melbourne to
Los Angeles A380 services to three per week.
Managing a Deteriorating Trading
Environment
Qantas acted decisively to the serious
downturn in trading conditions, by:
– holding high impact, differentiated retail
promotions such as the ‘2 for 1 Sale’ in
November 2008 and ‘Kids Fly Free’ in
February 2009, which signifi cantly improved
load factors;
– reducing network capacity to China, Hong
Kong, Japan and the United States, as well as
making ad hoc cancellations on London and
US services; and
– removing fuel surcharges from international
New Zealand services and halving fuel
surcharges on other international fares.
Network Developments
While Qantas continues to focus on its core
strategic network for corporate and premium
leisure passengers, the Group was able to
benefi t from its two brand strategy,
with Jetstar commencing services in select
leisure markets.
China: Sydney-Shanghai services increased
to daily; withdrawal of Sydney-Beijing and
Melbourne-Shanghai services.
Hong Kong: Reduction from 14 to 11
weekly Sydney-Hong Kong services and
withdrawal of three weekly Melbourne-Hong
Kong services. Daily Melbourne-Hong Kong-
London services remain.
India: Mumbai services reconfi gured
to three times per week via Singapore,
increasing connectivity through other
Australian capital cities.
Indonesia: Sydney-Jakarta services
moved from B767 to newer A330 aircraft
with Business Skybeds. Jetstar commenced
Perth-Bali and Perth-Jakarta services.
Qantas Passenger
Revenue Split
2008/09
International
Domestic
55%
45%
20 Qantas Annual Report 2009