Qantas 2012 Annual Report Download - page 55

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FOR THE YEAR ENDED 30 JUNE 2012
Directors’ Report continued
Annual Incentive
also referred
to as the Short
Term Incentive
Plan or STIP
(continued)
What was the STIP scorecard outcome for the year ended 30 June 2012?
The Board assessed performance against each of the performance measures and assessed overall performance
under the scorecard at 27 per cent of target.
Strategic Objective
Scorecard
Outcome Comment
1. Delivering sustainable
returns to shareholders
The Underlying PBT result was below the threshold for payment and
therefore there was no contribution under this measure.
A three per cent improvement in comparable unit cost and an above
threshold operating cash flow to net debt result was achieved.
Therefore, there was a partial contribution under this measure.
2. Safety is always
our first priority
The targeted 10 per cent reduction in the Total Recorded Injury
Frequency Rate and the eight per cent reduction in the Lost Work
Case Frequency Rate were not achieved and therefore there was
no contribution under this measure.
3. Building on the strong
domestic business
The domestic businesses (Qantas domestic, QantasLink and Jetstar
domestic) maintained their profit maximising 65 per cent market share
position during 2011/2012.
Qantas beat Virgin Australia in on-time departures in eight of the 12 months
in 2011/2012 (with three of the other months being those months most
impacted by industrial action).
Qantas also achieved its highest level of domestic customer satisfaction
in over three years with high satisfaction scores achieved across the
customer experience (check-in, cabin service and baggage delivery).
Qantas Frequent Flyer has continued to grow profitably, with more than
750,000 new members joining the Qantas Frequent Flyer program during
2011/2012.
4. Transforming Qantas
International
Significant progress was made against transformation projects in
Engineering and Catering. Achievement of key milestones in negotiating
and implementing commercial arrangements with key alliance partners.
Targets for Qantas international punctuality were achieved. Customer
satisfaction results were impacted by the industrial action, however,
improved in the second half of 2011/2012.
5. Growing Jetstar in Asia Successful operational launch of Jetstar Japan, ahead of schedule.
Jetstar Hong Kong strategic alliance with China Eastern Airlines
announced, bringing the Jetstar low-cost airline model to China.
Jetstar international and Jetstar Asia also achieved improved punctuality
performance in 2011/2012.
Key: Full contribution to STIP scorecard
Partial contribution to STIP scorecard
No contribution to STIP scorecard
Remuneration Report (Audited) continued
053