Qantas Airways Limited Fleet, Efficiency & Engineering

Gareth Evans, Chief Financial Officer

Seattle, 6 October 2013 For personal use only use personal For Group Fleet Strategy Flexibility, Simplification, Efficiency

• 5 key principles — Right aircraft, right route — Fleet simplification — Flexibility – delivery, retirement, renewal — Sustainable fleet investment profile — Continual reduction in fuel and unit cost • Maximum fleet plan flexibility • Up to 96 narrow‐body, 13 wide‐body aircraft — Firm orders, options, purchase rights planned for delivery in next 5 years — Orders span family of aircraft types • 37 options and 268 purchase rights through to Dec 2025 — Strong relationships with manufacturers and suppliers • 27 narrow‐body, 10 wide‐body and 4 turboprop aircraft potential lease renewals in next 3 years

For personal use only use personal For • Up to 37 aircraft retirements in next 5 years

2 Group Fleet Strategy Deliveries and Retirements

AIRCRAFT DELIVERIES AIRCRAFT RETIREMENTS & LEASE RETURNS (INDICATIVE TIMING) (INDICATIVE TIMING) Aircraft Type FY14 FY15‐FY16 FY17‐FY25 Aircraft Type FY14 FY15‐FY16 A380‐800 ‐‐ 8 B747‐400 2 2 B787‐86 53B767‐300 7 13 A320 Family1 8 15 80 B737‐400 6 ‐ B737‐800NG 4 5 ‐B737‐800 ‐ 0‐6 B717‐200 5 ‐ ‐A320‐200 5‐76‐23 Q400 3 ‐ ‐ REDUCTION IN FUEL CONSUMPTION PER ASK2 Total Deliveries 26 25 91 ~ 35%

~ 20% ~ 15% ~ 10%

For personal use only use personal For A380 v B747 A320neo v A320 B787 v B767 Q400 v similar (no sharklets) sized jet

1. Includes Jetstar Asia, excludes Jetstar Pacific, Jetstar Japan and Jetstar Hong Kong. 2. On a per available seat kilometre basis. Source: Qantas internal assessment and manufacturer guidance. 3 Group Fleet Strategy Maintaining a young, fuel‐efficient fleet

1 • Young average fleet age of 7.9 years COMPETITOR FLEET AGE FY13 (YEARS)2,3

• Lowest fleet age since privatisation 15 16.8 14.7 13.4 • Forecast fleet age to decline further 10 10.1 9.1 9.7 7.5 7.9 — 15 retirements of older fleet type in FY14 5 6.4 6xB737‐400, 7xB767‐300, 2xB747‐400 4.9 0 — 26 new aircraft deliveries in FY14 Group Pacific Jetstar

Airlines Airlines Airlines Airlines Airways Zealand

Emirates New Delta

Japan Cathay Qantas • A320 order supports cost‐effective future British Air American fleet growth at Jetstar associates Singapore QANTAS GROUP AVERAGE FLEET AGE3 10

2 Jetstar For personal use only use personal For Qantas Group 0 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15

1. Average fleet age of the Group’s scheduled passenger fleet based on manufacturing date. 2. Source: Airfleet.net. 3. Qantas Group fleet age includes Qantas and Jetstar scheduled passenger fleet. Jetstar fleet age includes Jetstar Australia Domestic and International, Jetstar New Zealand and Jetstar Asia scheduled passenger fleet. 4 Group Fleet Strategy The next big decisions

• Flexibility key to long‐term fleet strategy B7874 OPTION AND PURCHASE RIGHT TIMING • Arrangements with manufacturers provide TIMING OPTIONS PURCHASE RIGHTS5 maximum optionality for Qantas to manage FY17 5 orders to demand FY18 6 • 41 lease expiries1 over next 3 years; ability FY19 7 to replace or extend with existing orders FY20 2 • Future fleet replacement decisions, ongoing FY25 assessment of products Total 20 30

B7382 B737Max, A320/A321neo3 B747 A380, A330, A350XWB, B787, B777X B717 A319neo , B737‐7Max, Bombardier

C‐series, Embraer E‐jet family For personal use only use personal For

1. Includes Network Aviation aircraft. 2. Eight options still remaining. 3. Currently have 190 options and purchase rights for A320neo or A321neo. 4. Qantas has conversion rights for all B787 family aircraft. 5. Subject to availability. 5 Fleet Simplification Driving unit cost improvements

Benefits of fleet 20131 ‐ 9 Fleet Types 2016 ‐ 7 Fleet Types simplification: A380 • Operational synergies A380

• Commonality cost B747 savings B747 A333 QANTAS • Lower spares cost A333 • Network and A332 scheduling benefits A332 B767 • Customer satisfaction from consistent B737‐400 B737‐800 B737‐800 product offering

A330 B787 JETSTAR

For personal use only use personal For A320 A320

1. As at 30 June 2013. 6 Fleet Simplification Qantas Domestic wide‐body fleet evolution

Operational Synergies and Right aircraft, right route: With Commonality cost savings: retirement of B767s, consistent Reduced tech crew, cabin fleet type used on domestic routes. crew, engineering and reserve Currently B767s fly East‐West and A332 crew requirements. Catering East Coast. Simplification results in (4 configurations) equipment and other dedicated wide‐body fleet flying equipment designed for use East‐West (A332s) and narrow‐ B767 with B767s no longer required. body fleet (B738s) flying East Coast. A332

(4 configurations) (1 configuration)

2016 20131 Lower spares cost: B767s have Customer satisfaction with 2 engine types specific to fleet, consistent product: enabling a lower spares Retirement of the B767 fleet, inventory requirement. and introduction of new domestic product, will result in all Qantas A330s having consistent product and in‐seat

IFE2 offering. For personal use only use personal For

1. As at 30 June 2013. 2. In‐Flight Entertainment. 7 Fleet Simplification Assisting Qantas Domestic unit cost improvement

Reduce Qantas Domestic unit cost gap to competitor

Qantas Right Aircraft, Fleet Simplification & Fleet Renewal Transformation Increased Utilisation Right Route Reconfigurations Programs

• B763, B734 fleet retirement FUEL COST IMPROVEMENT PER ASK1 • Qantas Transformation initiatives >15% — Engineering — Commercial >10% — Operations — Overhead • B717 fleet on right route (Canberra, Hobart) • Increase narrow‐body utilisation

For personal use only use personal For A332 v B763 — Scope for additional off‐peak and leisure services B738 v B734

1. On a per available seat kilometre basis. Source: Qantas internal assessment and manufacturer guidance. 8 Fleet Simplification Evolution of fleet configurations

2008 2013 Future State

B747 7 Configurations 3 Configurations 1 Configuration

• Superior A380 product on 9xB747s: • Retirement of aircraft with legacy • Latest IFE product older than 20 years • Refreshed seats in all cabins • Continued operation of refreshed • Fully lie‐flat Business class skybeds 9xB747s

2013 2016 A330 6 Configurations 2 Configurations

• All Jetstar A330s transferred to Qantas Domestic by mid‐2015 • Reconfiguration of Qantas Domestic and Qantas International aircraft: • Fully flat business class seat A330‐300/200 • New economy seats for international A330‐300 For personal use only use personal For • Refreshed economy seats for domestic A330‐200 • New IFE with Q‐Streaming technology

9 Fleet Economics Improved utilisation

• Improving asset utilisation to drive unit cost benefits

— Reconfiguration programs: driving fuel savings on a per‐seat basis and capacity increases without heavy capital investment

— B738 engine refresh program: 19 aircraft to be refreshed by Aug 2014, driving approximately 1.5% fuel burn saving1

— Jetstar sharklet program: 7xA320s with sharklets delivering 3‐4% fuel burn saving2 • FY14 Group utilisation forecast at ~9.9 hours (FY13 ~9.4 hours)3

— Natural ground time initiatives Aircraft type Configuration changes Seat FY11‐Current (seats) change — Increasing utilisation both internationally and domestically B7444 307 / 353 364 19% A380 450 484 8%

B717 (single class) 115 / 117 125 9%

For personal use only use personal For A320 177 180 2%

1. Engine replacement program. Fuel burn efficiency based on Qantas internal assessment. 2. Source: Airbus guidelines. 3. Utilisation refers to Qantas jet operations. 4. Nine aircraft reconfigured as at 30 June 2013. 10 Fleet Economics Reconfiguration programs

World class product offering on main fleet types: • B747 reconfiguration completed Oct 2012 (9 aircraft) • B738 to fully replace B734 by Feb 2014 — In‐seat IFE on all B738s delivered from Aug 2009 • A330 reconfiguration commencing end 2014, completed by end 2016 (30 aircraft) — Latest IFE, new business suites with fully lie‐flat beds, refreshed/new economy seats • B767 cabin refresh completed May 2013 (15 aircraft) — Q‐streaming iPad technology (fully transferable to other aircraft), refreshed seats and interiors • B717 two‐class introduction in FY14

— First two‐class offering on regional network, latest IFE For personal use only use personal For

11 Fleet Economics Qantas International

Finding more flying time from existing long‐haul fleet • Natural ground time — Line maintenance conducted in Los Angeles when A380 otherwise idle — 1 extra day of flying available; 15% utilisation increase — Exploring further opportunities within network • Improved utilisation — Perth‐Auckland A330 seasonal flying, aircraft otherwise idle in Perth on weekends — Rescheduling of JetConnect Tasman flying to release equivalent of ~1 aircraft for domestic flying • Additional capacity options — Utilise improved A380 heavy maintenance schedule to up‐gauge B747 flying with A380 or add frequencies on core routes (e.g. Brisbane‐Los Angeles)

— Seasonal supplementary flying (e.g. from 3 to 4 weekly Sydney‐Santiago) For personal use only use personal For

12 Fleet Simplification & Engineering Driving efficiency gains

• Younger fleet requires less maintenance spend per ASK: — Improved technology results in reduced maintenance requirements (maintenance on demand) — New aircraft require less frequent heavy maintenance checks than older aircraft • Engineering cost savings — Lower inventory levels per aircraft — Less spare engines per aircraft — Less total support staff per aircraft • Benefits from exiting older fleet types (B767s, B734s) — Expected wide‐body engineering cost base reduction ~$100 million FY16 vs FY121 — Further cost savings through engineering, spares, flight operations, crew • B747 fleet now in maintenance ‘honeymoon’ FY13‐FY16 — Period of heavy maintenance investment FY08‐FY12

For personal use only use personal For — 25‐30% reduction in forecast B747 engineering costs compared to FY12

1. Annual benefit from removal of B767 engineering program only. 13 Qantas Engineering1 Removing maintenance complexity

QF Fleet Seating Configurations 2008 2011 2013 Future State A380 ‐ 11 1 B7477531 A3304442 B767 4 4 4 Exit B7372221 Fleet 17 Configs 16 Configs 14 Configs 5 Configs

QF Fleet Engine Types 2008 2011 2013 Future State A380 ‐ T900 T900 T900 RB211‐GT RB211‐GT RB211‐GT RB211‐GT B747 CF6‐80C2(B5F) CF6‐80C2(B5F) CF6‐80C2(B5F) CF6‐80C2(B5F) A330 CF6‐80E1 CF6‐80E1 CF6‐80E1 CF6‐80E1 RB211‐HT RB211‐HT RB211‐HT B767 Exit CF6‐80C2(B6) CF6‐80C2(B6) CF6‐80C2(B6) CFM‐56‐7 CFM‐56‐7 CFM‐56‐7 B737 CFM‐56‐7

For personal use only use personal For CFM‐56‐3 CFM‐56‐3 CFM‐56‐3 Fleet 7 Engine Types 8 Engine Types 8 Engine Types 5 Engine Types

1. Excludes Jetstar. 14 Qantas Engineering Transforming legacy cost base

• Heavy maintenance consolidation • Maintenance on demand • Reduction in engineering facility expenses

— Older fleet retirement and network changes (e.g. exit of loss‐making routes) • Consolidation of engineering support services from Melbourne into Sydney • New Maintenix IT system improving maintenance efficiency

QANTAS ENGINEERING C/ASK PEER COMPARISON: MAINTENANCE SPEND C/ASK1

‐18.9% ‐29%

Average P. A. A.

NZ JAL

Avg

KLM ‐ Delta Iberia Air FY12A FY13A FY11A United AF Airways LCC

For personal use only use personal For Cathay American Lufthansa US Malaysia Continental

FY10 FY11 FY12 FY13 Singapore

1. Calculated in AUD. Source: US DOT Form 41; Company Annual Reports. 15 Disclaimer & ASIC Guidance

This Presentation has been prepared by Qantas Airways Limited (ABN 16 009 661 901) (Qantas).

Summary information This Presentation contains summary information about Qantas and its subsidiaries (Qantas Group) and their activities current as at 6 October 2013. The information in this Presentation does not purport to be complete. It should be read in conjunction with Qantas Group’s other periodic and continuous disclosure announcements lodged with the Australian Securities Exchange, which are available at www.asx.com.au.

Not financial product advice This Presentation is for information purposes only and is not financial product or investment advice or a recommendation to acquire Qantas shares and has been prepared without taking into account the objectives, financial situation or needs of individuals. Before making an investment decision prospective investors should consider the appropriateness of the information having regard to their own objectives, financial situation and needs and seek legal and taxation advice appropriate to their jurisdiction. Qantas is not licensed to provide financial product advice in respect of Qantas shares. Cooling off rights do not apply to the acquisition of Qantas shares.

Financial data All dollar values are in Australian dollars (A$) and financial data is presented within the financial year ended 30 June 2013 unless otherwise stated.

Future performance Forward looking statements, opinions and estimates provided in this Presentation are based on assumptions and contingencies which are subject to change without notice, as are statements about market and industry trends, which are based on interpretations of current market conditions. Forward looking statements including projections, guidance on future earnings and estimates are provided as a general guide only and should not be relied upon as an indication or guarantee of future performance.

An investment in Qantas shares is subject to investment and other known and unknown risks, some of which are beyond the control of Qantas Group, including possible delays in repayment and loss of income and principal invested. Qantas does not guarantee any particular rate of return or the performance of Qantas Group nor does it guarantee the repayment of capital from Qantas or any particular tax treatment. Persons should have regard to the risks outlined in this Presentation.

No representation or warranty, express or implied, is made as to the fairness, accuracy, completeness or correctness of the information, opinions and conclusions contained in this Presentation. To the maximum extent permitted by law, none of Qantas, its directors, employees or agents, nor any other person accepts any liability, including, without limitation, any liability arising out of fault or negligence, for any loss arising from the use of the information contained in this Presentation. In particular, no representation or warranty, express or implied is given as to the accuracy, completeness or correctness, likelihood of achievement or reasonableness of any forecasts, prospects or returns contained in this Presentation nor is any obligation assumed to update such information. Such forecasts, prospects or returns are by their nature subject to significant uncertainties and contingencies. Before making an investment decision, you should consider, with or without the assistance of a financial adviser, whether an investment is appropriate in light of your particular investment needs, objectives and financial circumstances.

Past performance Past performance information given in this Presentation is given for illustrative purposes only and should not be relied upon as (and is not) an indication of future performance.

Not an offer This Presentation is not, and should not be considered, an offer or an invitation to acquire Qantas shares or any other financial products.

ASIC GUIDANCE In December 2011 ASIC issued Regulatory Guide 230. To comply with this Guide, Qantas is required to make a clear statement about whether information disclosed in documents other than the financial report has been audited or reviewed in accordance with Australian Auditing Standards. In line with previous presentation, this presentation is unaudited. Notwithstanding this, the presentation contains disclosures which are extracted or derived from the

Consolidated Financial Report for the year ended 30 June 2013 which is audited by the Group’s Independent Auditor. For personal use only use personal For

16 Jetstar Group Jetstar in Asia

Jayne Hrdlicka, Jetstar CEO

Seattle, 6 October 2013 For personal use only use personal For

1 Jetstar Group Model ‘Virtuous circle’ drives growth and innovation for strong, independent airlines

OPPORTUNITIES INVESTMENT IN FOR GROWTH INNOVATION Maximised profitability

Strong, LOW FARES Cost discipline engaged team SEGMENT plus scale LEADER

Market‐leading Customer ancillary advocacy

revenue For personal use only use personal For

2 What is good for the customer is good for Jetstar Group airlines ‘’Low fares are just part of the story’’

CUSTOMER PROMISE JETSTAR ECONOMICS

Low fares Price leadership Best products and services Increased revenue and margin Consistent experience Standardised, replicable model More places to fly, more often Scale across attractive markets

CUSTOMER ADVOCACY INCREASED PROFITABILITY For personal use only use personal For

Growth For personal use only use personal For

4 The Asian Century Jetstar Group Airlines1 positioned for success across the region

More people live inside the orange region than outside2

2008‐2012 ASK3 Growth: • 7% in Asia vs 3% in Rest of World • 28% for Asia low‐cost carriers vs 9% for Rest of World LCCs4

For personal use only use personal For Population Rising New ‘Once‐in‐a‐century’ Growth Incomes Travellers LCC Opportunity 1. Jetstar Group Airlines are Jetstar (Australia & New Zealand), Jetstar International (Australia), Jetstar Asia (Singapore), Jetstar Japan, Jetstar Pacific (Vietnam), and Jetstar Hong Kong. Jetstar Hong operations subject to regulatory approval. 2. Source: World Population Prospects, the 2012 Revision. United Nations Department of Economic and Social Affairs, Population Division, Population 5 Estimates and Projections Section. 3. Available Seat Kilometres. 4. Low Cost Carriers. Source: Centre for Aviation (CAPA) data. Asia includes seat capacity to/from and within Central Asia, North East Asia, South East Asia and South Asia Jetstar Group in Asia Stimulating underlying market growth to achieve 32% passenger growth

Jetstar Group Airlines have ‘grown the pie’ JETSTAR GROUP AIRLINES –PAX GROWTH IN ASIA2 by stimulating local demand for LCC travel • Japanese LCCs added 2.6 million domestic passengers to the market +32% (>50% of market growth for 12 months to March 13)1 Jetstar Group Airlines’ 32% passenger2, 3 19% revenue growth in Asia FY09 FY10 FY11 FY12 FY13 FY14F

• Since FY09, 10 million customers have BUSINESS OWNERSHIP LAUNCH BASED AIRCRAFT4

flown Jetstar from Australia to Asia Jetstar Australia 100% 2004 50xA320s/A321s • Since FY09, 23 million customers have Jetstar International 100% 2006 10xA330s flown Jetstar Group Airlines within Asia Jetstar NZ5 100% 2009 9xA320s Jetstar Asia (Singapore) 49% 2004 17xA320s • More than 90% of Jetstar Group Airlines’ Jetstar Japan 33% 2012 13xA320s

customers within Asia are point‐to‐point 6 For personal use only use personal For Jetstar Hong Kong 33% – –

Jetstar Pacific (Vietnam)7 30% 2008 5xA320s

1. Source: CAPA analysis dated 8 August 2013. 2. Includes Jetstar International services into Asia, Jetstar Asia, Jetstar Pacific, Jetstar Japan and Jetstar Hong Kong (subject to regulatory approval. 3. Jetstar Group Asian revenue CAGR FY09‐FY13 includes Jetstar International services into Asia, Jetstar Asia, Jetstar Pacific and Jetstar Japan. 4. As at 30 June 2013. 5. Jetstar Trans Tasmanservices 6 commenced in 2005, Jetstar NZ (Domestic) services commenced in 2009. 6. Subject to regulatory approval. Previously 50% ownership. 7. Jetstar Pacific rebranded in 2008. Jetstar Group’s Asian Footprint: 125 aircraft1 Established and start‐up airlines in key growth markets

JETSTAR GROUP AIRLINES JETSTAR GROUP –GROWING NETWORK OF ROUTES

Asia Routes JETSTAR Non Asia Routes JAPAN 157

JETSTAR PACIFIC (VIETNAM) JETSTAR 129 HONG KONG2 115 JETSTAR +18% INTERNATIONAL 109 96 98 JETSTAR ASIA 82 (SINGAPORE) 67 59

39 31 JETSTAR JETSTAR AUSTRALIA

NZ For personal use only use personal For FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14F2 Route Map as at 30 June9.4 2013 million members

1. Fleet based on FY14 forecast. 2. Subject to network optimisation and route planning changes. Jetstar Hong Kong subject to regulatory approval. 7 Successful model in Asia The best of strong, independent, local airlines plus Jetstar Group scale & experience

• Control by local management team, flying majority local passengers Local, (2,000+ local employees serving 9.5 million1 passengers) independent • The right strategic, local shareholders for each market airlines • Commercial and operational decisions driven by local CEO and board • Model geared to local culture norms, consumer needs, and regulators

• Robust, replicable model to deliver both customer service and low cost • Combination of Jetstar model and local partners’/shareholders’ scale Group scale • Multi‐lingual, multi‐airline sales and distribution platforms • Pan‐Asia Pacific network connectivity across >130 routes

• Nearly ten years of experience delivering safe operations ‐ built on 90+ years of Qantas safety practices Wisdom of • Dual‐brand ‘know‐how’ embedded in the Jetstar LCC model experience

For personal use only use personal For • Regular experience sharing between Group airlines • Award‐winning customer experience

1. Jetstar Group FY13 passengers carried in Asia includes Jetstar International services into Asia, Jetstar Asia, Jetstar Pacific and Jetstar Japan. 8 For personal use only use personal For Innovation

9 Jetstar Group innovation in the LCC market First profitable LCC to come from a full service carrier

PIONEERING LCC‐ UNIQUE marketing PIONEERING booking Airport models assets, including interface with ‘low‐fare (e.g. Gold Coast) FIRST airline to put iPads with the 5 million MyJetstar finder’/Price‐Beat LEADING social FIRST LCC in latest content on‐ subscribers, Friday Fare Guarantee media presence Asia‐Pacific to board Frenzy and a pan‐Asia‐ (over 700,000 introduce Pacific brand Facebook likes) SMART Revenue customer self‐ FIRST airline in Management and service for Singapore to fly data analytics changes/ Sharklet‐equipped disruptions A320

INSPIRATION BOOKING DEPARTURE IN‐FLIGHT POST‐TRIP

FIRST LCC in FIRST LCC to INNOVATIVE Asia‐Pacific to FIRST LCC group FIRST LCC in open‐up new pay options unbundle to have a Pan‐ Asia‐Pac to markets on (bank direct, check‐in bags Asia catering launch targeted, more than 80 ATMs, 7‐11s) product pro‐active routes FIRST LCC in Asia‐Pacific to webchat FIRST LCC to have SMS boarding pass Opened new markets as offer interline FIRST LCC to win FIRST LCC to launch For personal use only use personal For the FIRST LCC to fly long‐ and codeshare FIRST LCC in Asia wine awards for avatar chat, ‘Ask haul in 2006 flights Pacific to fly B787 business‐class cabin Jess’ (Nov‐13) (Nov‐13) 10 Unlocking potential through innovation

INNOVATION DELIVERS . . .

CUSTOMER REVENUE COST ADVOCACY more flexibility, more choice, Over 9% year‐on‐year B787 cost efficiencies

more responsive ancillary revenue growth1 For personal use only use personal For

1. FY05‐FY13 ancillary revenue growth. 11 Product innovation delivering higher customer advocacy Finding better ways to provide a seamless customer experience

More flexibility More choice More responsive

Web check‐in Bundles Customer Help Avatar1 For personal use only use personal For Higher customer advocacy… with more ancillary revenue and lower costs

1. To be launched November 2013. 12 Product Innovation delivering higher revenues Market‐tailored product innovation drives ancillary revenue growth

JETSTAR GROUP – ANCILLARY REVENUE (AUD/PAX)

+9.4%

$30.6 $31.6 $22.3 $24.1 $15.5 $15.8 $17.8 $19.0 $20.8

FY05 FY06 FY07 FY08 FY09 FY10FY11 FY12 FY13

YEAR‐ON‐YEAR INNOVATION ACROSS ALL MARKETS

Baggage Prepaid extra Insurance & Hotels Upgrades Jetstar Bundles Travel SIM JCB Card Facility baggage car rentals MasterCard® card (Vietnam) (Australia)

Domestic Short‐haul Long‐haul Comfort Upfront Hotels and iPads Jetstar Club Jetstar freight freight freight packs seats car rentals travel card (AUS / NZ)

(Singapore) For personal use only use personal For Catering In‐flight Distribution Extra leg‐ Activities Seating Priority Route Lawson entertainment recovery room improvements boarding pricing partnership (IFE) (Japan) 13 Product Innovation driving lower unit cost B787 delivering value to customers and airline

• B787 to widen Jetstar International profit B787 UNIT COST IMPROVEMENT1 margin vs LCC competitors >10% – Lower unit costs for the airline Key drivers of improvement – Keep fares low • Fuel efficiency • Reduced engineering – Enhanced product for the customer costs – Seat‐back IFE to deliver ancillary revenue Jetstar A332 Jetstar B788 from every passenger seat • Delayed B787 delivery has allowed for B787 IFE PROPOSITION – Learning through others’ experience – Tailored product to our customer base,

including Asian IFE content/catering For personal use only use personal For

1. Source: Internal unit cost estimates. 14

Results For personal use only use personal For

15 Success story in Asia Case Study: Building brand presence in Japan ahead of launch of independent airline

JETSTAR GROUP –ROUTE MAP Brand Positioning • Jetstar International first LCC to fly to Japan in 2007 • By the time of Jetstar Japan launch in July 2012: – Jetstar Group flew into Japan from Manila, Taipei, Gold Coast and Cairns – >2m passengers already carried to/from Australia – Jetstar recognised as a top 100 brand in Japan1 Scale Benefits • Accessing same ports, infrastructure and suppliers Understanding of Local Market • Existing knowledge of operating in Japan (local staff, local distribution, Japanese customers) Feed Traffic

For personal use only use personal For • Connectivity between long‐haul and short‐haul networks gives customers more destinations to fly

1. Source: CM Databank, ‘Top 100 Breakthrough Brands’. 16 Jetstar Japan ジェットスター・ジャパン Growth potential in Japan is significant

Significant potential for LCC growth in Japan DOMESTIC LCC MARKET PENETRATION, YTD 2013 1

• Domestic LCC penetration only 5% of 87% total market2 with potential to be >30% 57%

36% • Japan’s population 6 x size of Australia’s 31% 23% Jetstar Japan well placed to lead the market 5%

• Early mover advantages Japan Australia South Korea Within Malaysia Philippines Europe – Existing brand strength – First LCC in Narita – Largest domestic network • Growth plan in place to maintain leading LCC position in domestic and international markets into FY16 Jetstar Japan celebrates 2 million passengers

For personal use only use personal For on 13 August 2013 Jetstar Japan and Lawsons partner in accessing 10,000 convenience store locations throughout Japan

1. Source: CAPA, Jan‐Sep 2013 market penetration by seats. 2. CAPA Report Domestic LCC market share (% seats) Jan‐May 2013, dated 14 June 2013. 17 Jetstar Japan ジェットスター・ジャパン Already the largest LCC in Japan

•Jetstar Japan is the largest LCC1 in Japan JETSTAR JAPAN FLEET GROWTH 2 with 9 destinations, 13 routes From launch in July 2012 15 15 aircraft in 15 months • Japan is the third largest domestic aviation market in world3

3 12 12 13 13 13 13 13 13 12 12 13 12 12 13 13 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Jul Jul Jan Jun Oct Apr Sep Feb Sep Dec Aug Aug Nov Mar May

JUL‐SEP FY14 TOTAL SEATS5

+55% (m) 1.4 0.9 Seats 0.5

4 th 4 6

For personal use only use personal For •Jetstar Group combined is the 8 Japan Peach Jetstar AirAsia largest carrier in Japan Group

1. Based on fleet at 30 June 2013 and Domestic plus International seats compared to Peach Aviation and AirAsia Japan. 2. As at September 2013. 3. By seats, CAPA analysis dated 8 August 2013. 4. 18 Source: Based on Jul‐Sep 2013 seat capacity per Diio Mi extract at September 2013. Japan market includes domestic and international seats, Jetstar Group in Japan includes Jetstar Japan, Jetstar Asia and Jetstar International. 5. Source: Jul‐Sep 2013 seat capacity per Diio Mi extract at September 2013. 6. AirAsia Japan market exit by end of October 2013 to be replaced by Vanilla in December 2013. Jetstar Japan ジェットスター・ジャパン Stimulating market demand to unlock and capture value

5 • Japan domestic passenger growth 8.7%, STIMULATING DEMAND first increase in 6 years1 TOKYO – SAPPORO PASSENGERS • Innovation in LCC distribution channels Newly – generated First airline in Japan to sell fares at demand multi‐media kiosks – Lawson partnership (10,000 stores) – Multiple travel agency partnerships Apr‐12 May‐12 Jun‐12 Jul‐12 Aug‐12 Sep‐12 Oct‐12 Nov‐12 Dec‐12 Jan‐13 AirAsia Japan Jetstar Japan ANA Skymark JAL • Japan Airways (JAL) codeshare and access STIMULATING DEMAND6 to JAL and Qantas Frequent Flyer Programs NARITA AIRPORT DOMESTIC PASSENGERS • Increased passenger numbers and amenities at ports served by Jetstar Japan – Passenger growth –Narita 33%2, Osaka 18%3, Sapporo 24%4 12 13 12 12 13 12 13 12 12 12 13 12 12 12 12 13 13 13 13 12 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Jul

Jul For personal use only use personal For Jan Jan Jun Jun Oct Apr Apr Feb Feb Sep Dec Aug Aug Nov Mar Mar May – New Narita amenities include low‐cost May shuttle services, accommodation deals Jetstar Japan Domestic Pax Other Domestic Pax

1. Based on domestic passenger growth in 12 months to 31 March 2013. Source: CAPA analysis dated 8 August 2013. 2. 12 months to August 2013, Source: Kotsu Mainichi Shimbun, 21 September 2013. 19 3. 12 months to August 2013, Source: Asahi Shimbun, 21 September 2013. 4. 12 months to August 2013, Source: Hokkaido Shimbun, 21 September 2013. 5. Source: Chin Chitose airport data. 6. Source: Narita international airport data. Jetstar Japan ジェットスター・ジャパン Strong operational performance despite Year One challenges

Jetstar Japan shows all the hallmarks of a highly JETSTAR JAPAN – REVENUE GROWTH successful LCC: 216% • On‐time performance >90%1, cancellations rates <1%1, strong customer advocacy and ancillary revenue growth Year One performance impacted by: • Rapid fleet and network expansion to capture #1 LCC market position 1Q2013 1Q2014 • Significant investment to develop core JETSTAR JAPAN –CUSTOMER ADVOCACY Japanese market ahead of other LCCs NET PROMOTER SCORE • Narita‐based LCC competition (AirAsia Japan to exit Narita in October 2013) • Domestic‐only operations and Narita curfews 0 impacting aircraft utilisation 12 12 13 13 12 13 13 12 13 13 13 12 12 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐

‐ ‐ For personal use only use personal For Jul • Embedding LCC operating model into local Jul Jan Jun Oct Apr Sep Feb Dec Aug Nov Mar environment May

1. June‐August 2013. 20 Jetstar Asia 捷星亞洲航空公司 Gateway to South East Asia: Core platform to access growing demand

Singapore core to Jetstar Group’s potential in Asia SINGAPORE LCC MARKET GROWTH1 • Strategically important ‘gateway’ market Singapore LCC market has grown from 7% in FY05 to 35% of the total market in FY13 • Forefront of LCC innovation in Asia LCC FSC Eight years of growth • Capacity growth of 22% (FY05‐FY13) in intensely competitive regional market

• Focus on improving returns from current base, FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 leveraging partnerships, growth opportunities JETSTAR ASIA SEAT GROWTH2 Regional partnerships key to future success

• 19 intra‐South East Asia interline agreements +22.3% including Qantas, Emirates, Air France, British Airways, China Southern, Lufthansa, Turkish

Airlines For personal use only use personal For FY05FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13

1. Source: Diio Mi Singapore capacity by seats July 2004 to June 2013. 2. Includes Jetstar Asia and Valuair. 21 Jetstar Pacific

Significant growth opportunity in Vietnam JETSTAR PACIFIC –ROUTE MAP • Average GDP growth rate 6% (2008‐2012)1 • Lowest LCC penetration among major South East Asian countries at only 25% domestic and 14% international2 Jetstar Pacific positioned to take advantage • Local management team with market insights 4 • Transitioned to all A320 fleet delivering significant ANCILLARY ĐỒNG/PAX unit cost improvements vs older B737 aircraft3 +30% – 5 aircraft with planned growth • Currently servicing 7 domestic destinations – ~2 million passengers flown in FY13

• Strong yield improvement continuing For personal use only use personal For

Challenges remain as local LCC market develops FY12 FY13

1. Source: International Monetary Fund. 2. CAPA Report dated 22 February 2013. 3. Fleet renewal complete on 18 January 2013. 4. Financial years ended 30 June 2012 and 30 June 2013 22 (excludes freight). Jetstar Hong Kong1 捷星

• Untapped potential in Hong Kong market STRONG DEMAND FOR LCCs IN HONG KONG3 – Current LCC penetration is 5% with the potential to Don’t know: 1% Don’t know: 1% Don’t know: 1% 2 triple to 15% in 2015 Disagree: 4% Disagree: 4% Disagree: 7% Neither agree/ Neither agree/ – Nearly 70% of Hong Kong people surveyed said Neither agree/ disagree: 14% disagree: 10% disagree: 13% they intended to fly LCC in the next 12 months3 • Local CEO, Chairman, and management team

• Shun Tak joined China Eastern Airlines and Qantas as equal shareholder in June 2013 Agree Agree Agree 79% 81% 84% • Jetstar Hong Kong management working with Hong Kong government on regulatory approvals – Application to Air Transport Licencing Authority gazetted, now in public consultation process Would fly Would spend the HK should more if fares saved money have more •Jetstar Hong Kong management leveraging were lower on other travel home based Group learnings from Jetstar Japan to ensure expenditure if LCCs

For personal use only use personal For airfares were early success cheaper

1. Subject to regulatory approval. 2. Penetration rate of available seat capacity, CAPA report dated 23 March 2013. 3. Research by HK People’s Opinion Platform (July 2013) n=1,035. 23

Valuing the Potential For personal use only use personal For

24 Valuation of Asia‐Pacific and Global LCCs Jetstar Group has the right platform to capture growth and deliver value

Jetstar Group’s Asia Pacific Growth Global LCC Comparison JETSTAR GROUP AIRLINES MARKET CAPITALISATION (AUD M)2 FLEET PASSENGER (M) 13,121 +18.2% +16.0% Asia‐Pacific LCC peers

104 24 88 21 9,024 2,395

868 FY12 FY13 FY12 FY13 470 JETSTAR: MARKET‐LEADING POSTION1 Tiger AirAsia X AirAsia EasyJet Ryanair ► #1 LCC Australia, New Zealand, Trans‐Tasman Group bhd ► #1 LCC Australia to Asia ► #1 LCC in Japan P/E3 16.0 10.3 8.3 12.6 12.8 ► #2 LCC in Singapore Fleet 4 48 13 129 212 303 ► #2 LCC in Vietnam Jetstar Group growing to

► First LCC in Hong Kong (subject to regulatory approval) 125 aircraft by end of FY145 For personal use only use personal For

1 Based on available seat kilometres. 2. Source: Bloomberg. 3. Source: Bloomberg, Market Capitalisation and Forward Price to Earnings extracted and converted to AUD 2 October 2013. 4. Fleet based on FY14 forecast. 5. Jet aircraft only (excluding regional aircraft); fleet as at 25 September 2013. TAH, RYA, AAX ‐ listedonwebsite,EZY‐ IR pack dated 10 September 2013, AIRA, airfleets.net: TAA, PAA, 25 AA IAA 4. Valuation of Asia‐Pacific and Global LCCs It takes time to unlock full potential

~3‐4 YEARS START UP TRAJECTORY IN NEW LCC MARKETS • Other Asia‐Pacific LCCs have BEFORE REACHING PROFIT STABILITY1 taken 3‐4 years to break‐even THB M SGD M • Rapid ramp‐up is needed to 60 2,000 Singapore achieve scale in each market • Jetstar Group has a capital‐light 1,500 40 Thailand model with risk/reward shared 1,000 between strategic investors

AirAsia did not produce 20 500 segment reporting in • Local shareholder support is strong this period and built on a shared ambition for 0 0 the profitability of each airline ‐500 ‐20 ‐1,000 ‐40 ‐1,500 Launch YR1 YR2 YR3 YR4 YR5 YR6

For personal use only use personal For date

1. Tiger Singapore financials based on 2007‐2013 Annual Company Returns , AirAsia Thailand financials based on Quarterly Financial reports 2005‐2010 . 26 Jetstar Group Model Strong, independent airlines provide growth and innovation opportunities

OPPORTUNITIES INVESTMENT IN FOR GROWTH INNOVATION Jetstar Maximised Boeing 787 (Australia) introduction profitability Jetstar All markets/cultures International driving innovation (Australia) iPads and IFE Jetstar Asia Strong, LOW FARES Cost discipline (Singapore) A320 Sharklets engaged team SEGMENT plus scale Jetstar Self‐service (New Zealand) LEADER Online and mobile Jetstar Pacific distribution (Vietnam) Interline/codeshare Jetstar Market‐leading connectivity Customer Japan ancillary advocacy Distribution Jetstar revenue partners Hong Kong1 … … For personal use only use personal For ongoing innovation potential future serving growing growth markets passenger numbers

1. Subject to regulatory approval. 27 Disclaimer & ASIC Guidance

This Presentation has been prepared by Qantas Airways Limited (ABN 16 009 661 901) (Qantas).

Financial data All dollar values are in Australian dollars (A$) and financial data is presented within the financial year ended 30 June 2013 unless otherwise stated.

Past performance Past performance information given in this Presentation is given for illustrative purposes only and should not be relied upon as (and is not) an indication of future performance.

Not an offer This Presentation is not, and should not be considered, an offer or an invitation to acquire Qantas shares or any other financial products.

ASIC GUIDANCE In December 2011 ASIC issued Regulatory Guide 230. To comply with this Guide, Qantas is required to make a clear statement about whether information disclosed in documents other than the financial report has been audited or reviewed in accordance with Australian Auditing Standards. In line with previous presentations, this presentation is unaudited. Notwithstanding this, the presentation contains disclosures which are extracted or derived from the

Consolidated Financial Report for the year ended 30 June 2013 which is audited by the Group’s Independent Auditor. For personal use only use personal For