Qantas 2015 Annual Report Download - page 82

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81
QANTAS ANNUAL REPORT 2015
32. DEED OF CROSS GUARANTEE
Pursuant to ASIC Class Order 98/1418 (as amended) (Class Order), the wholly owned entities identified below are relieved from the
Corporations Act requirements for preparation, audit, distribution and lodgment of Financial Statements and Directors’ Reports.
AAL Aviation Limited Impulse Airlines Australia Pty Ltd Express Freighters Australia Pty Ltd
Australian Regional Airlines Pty Ltd Jetstar Airways Pty Ltd Express Freighters Australia (Operations)
Pty Ltd
Regional Airlines Charter Pty Ltd Jetstar Group Pty Ltd Qantas Road Express Pty Ltd
Network Aviation Pty Ltd First Brisbane Airport Pty Ltd Qantas Courier Limited
The Network Trust Second Brisbane Airport Pty Ltd Qantas Frequent Flyer Limited
Network Aviation Holdings Pty Ltd TAA Aviation Pty Ltd Qantas Frequent Flyer Operations Pty Ltd
The Network Holding Trust Australian Airlines Limited Qantas Ground Services Pty Ltd
Network Holding Investments Pty Ltd Jetstar Services Pty Ltd Qantas Group Flight Training Pty Ltd
Network Turbine Solutions Pty Ltd Jetstar Asia Holdings Pty Ltd Qantas Group Flight Training (Australia)
Pty Ltd
Osnet Jets Pty Ltd Q H Tours Limited Qantas Information Technology Limited
Sunstate Airlines (Qld) Pty Ltd Qantas Asia Investment Company Pty Ltd QF Cabin Crew Australia Pty Ltd
Southern Australia Airlines Pty Ltd Qantas Catering Group Limited Snap Fresh Pty Ltd
Airlink Pty Ltd Q Catering Limited Accumulate Loyalty Services Limited
Eastern Australia Airlines Pty Ltd Qantas Domestic Pty Ltd Loyalty Magic Pty Ltd
Qantas Freight Enterprises Limited Australian Air Express Pty Ltd Impulse Airlines Holdings Pty Ltd
It is a condition of the Class Order that Qantas and each of the controlled entities eligible to obtain relief under the Class Order enter
into a Deed of Cross Guarantee (Deed).
Under the Deed, Qantas guarantees to each creditor payment in full of any debt upon the winding up under certain provisions of the
Corporations Act of any of the controlled entities that is party to the Deed. If the winding up occurs under other provisions of the
Corporations Act, Qantas will only be liable if, six months after a resolution or order for the winding up of the controlled entity, any
debt of a creditor of that controlled entity has not been paid in full. Each controlled entity that is party to the Deed has given similar
guarantees in the event Qantas is wound up.
Qantas and its eligible controlled entities first entered into a Deed on 4 June 2001. Subsequently, additional controlled entities
became party to the Deed by way of Assumption Deeds dated 17 June 2002, 26 June 2006, 29 June 2007, 30 June 2008, 29 June 2009,
16 June 2010, 25 November 2010, 4 April 2011, 13 October 2011 and 20 November 2012.
The Consolidated Condensed Income Statement and Balance Sheet for Qantas and each of its controlled entities that are party to
the Deed are set out below. The principles of consolidation are:
–Transactions, balances and unrealised gains and losses on transactions between entities that are party to the Deed are eliminated
–Investments that are not party to the Deed are carried at cost less any accumulated impairment
–Dividends received from investments are recognised as income
(A) CONDENSED INCOME STATEMENT
Consolidated
2015
$M
2014
$M
Revenue and other income 15,370 14,876
Expenditure (14,491) (18,532)
Statutory profit/(loss) before income tax expense and net finance costs 879 (3,656)
Net finance costs (246) (195)
Statutory profit/(loss) before income tax expense 633 (3,851)
Income tax (expense)/benefit (230) 1,049
Statutory profit/(loss) for the year 403 (2,802)
Retained earnings as at 1 July (1,548) 1,139
Defined benefit actuarial gains, net of tax –113
Shares vested and transferred to employees (2) (4)
Share-based payments unvested and lapsed 1 6
Retained earnings as at 30 June (1,14 6) (1,548)