Qantas 2013 Annual Report Download - page 88

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86
Directors’ Report continued
FOR THE YEAR ENDED 30 JUNE 2013
Annual Incentive
also referred to
as the Short Term
Incentive Plan
orSTIP
(continued)
Customer Service – NPS
Customer Service is measured against NPS targets. This is a survey-based measure of the willingness of
customers to promote the services of the company in preference to its direct competitors. Individual NPS
targets are set for Qantas Domestic, Qantas International, Jetstar Domestic, Jetstar Asia, Jetstar Japan
and Jetstar Pacic.
What was the STIP scorecard outcome for the year ended 30 June 2013?
The Board assessed performance against each of the performance measures and assessed overall
performance under the scorecard at 38 per cent of target.
Strategic Objective
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.
The operating cash ow to net debt result was below the threshold for payment
and therefore, there was no contribution under this measure.
2. Safety is always
our rst priority
As a result of people safety targets being exceeded and satisfactory operational
safety performance there was an above target contribution under this measure.
3. Building on the
strong domestic
business
The domestic businesses (Qantas Domestic, QantasLink and Jetstar Domestic)
maintained their prot maximising 65 per cent market share position during 2012/2013.
Unit cost targets were exceeded.
Qantas Domestic was the most punctual Australian Domestic airline in 2012/2013.
Qantas Domestic achieved record NPS results which exceeded their stretch
targets. Jetstar Domestic achieved their customer satisfaction targets,
signicantly improving their NPS results during 2012/2013.
Key business transformation milestones were achieved across Qantas Engineering,
Q Catering, Qantas Information Technology and Qantas Ground Operations.
4. 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 targets were exceeded.
Qantas International NPS targets were achieved, with record NPS results
achieved during 2012/2013.
Qantas Frequent Flyer has continued to grow, with membership of 9.4 million
members.
5. Growing Jetstar
in Asia
The Underlying EBIT target for Jetstar Asia was above the threshold for
paymentbut was below the level for a full contribution to the STIP scorecard.
Customer service targets (NPS) were exceeded for each of the Jetstar branded
airlines in Asia.
Signicant progress was made in the growth of Jetstar branded airlines in Asia, with:
»Continued development of Jetstar Japan
»Fleet renewal in Jetstar Pacic completed
»Jetstar Hong Kong launch delayed, however, continued progress on achieving
regulatory approval
Key: Above target contribution to STIP scorecard
Full contribution to STIP scorecard
Partial contribution to STIP scorecard
No contribution to STIP scorecard
Remuneration Report (Audited)
c
ontinue
d