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Annual Report 2005 Annual Report 2005 > Our Customers Our Future Our Brand Our Business Our Priority X Spirit of Australia Qantas Annual Report 2005

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Annual Report 2005 Annual Report 2005 > Our Customers Our Future Our Brand Our Business Our Priority X Spirit of Australia Qantas Annual Report 2005 Qantas Annual Report 2005 Report Annual > Our Customers Our Brand Our Priority Spirit of Australiax Our Future Our Business Qantas AnnualReport2005 Qantas Annual Report 2005 ~Corporate Directory~ REGISTERED OFFICE QANTAS SHARE REGISTRY STOCK EXCHANGE Qantas Airways Limited Level 8 Australian Stock Exchange ABN 16 009 661 901 580 George Street 20 Bridge Street Sydney NSW 2000 Sydney NSW 2000 Qantas Centre Australia Australia Level 9, Building A 203 Coward Street or DEPOSITARY FOR AMERICAN Mascot NSW 2020 Locked Bag A14 Australia Sydney South NSW 1235 DEPOSITARY RECEIPTS Australia The Bank of New York Telephone 61 2 9691 3636 ADR Division Facsimile 61 2 9691 3339 Freecall 1800 177 747 101 Barclay Street Website www.qantas.com International 61 2 8280 7390 New York NY USA Our Brand Priority Our Our Facsimile 61 2 9287 0303 Telephone 1 212 815 2218 Email [email protected] Facsimile 1 212 571 3050 Website www.qantas.com GENERAL COUNSEL & Our Customers COMPANY SECRETARY > Our Future Our Business Brett Johnson Designed and produced by Armstrong Miller+McLaren – www.amm.com.au Photography by Bob Armstrong and Mike Armstrong Qantas Annual Report 2005 ~Our Customers~ 1~ Customers are at the centre of everything we dox This year, we carried more than 32 million people to We know that different travellers have different 145 destinations in 40 countries around the world. needs, which is why we offer different experiences for the business traveller, the leisure traveller, the Our goal is to give each customer the best possible regional flyer and, with Jetstar, a whole new group travel experience, from the time they choose to of customers who are first-time flyers. fly with us to when they arrive at their ultimate destination. Our attention to customer service has paid off. This year, in the world’s largest airline passenger survey, We are continually refining our products and services the Skytrax World Airline Awards, Qantas was named in the air and on the ground to ensure we not only the number two airline in the world as well as the fulfil our customers’ expectations but anticipate how Best Airline Australasia and Best Airline trans-Pacificx their expectations will change in the future. This can be as simple as offering free newspapers on Cityflyer morning services or as complex as revolutionising the Economy Class cabin on our new A380 aircraft to ensure maximum comfort on our longest flights. 1 Qantas Annual Report 2005 ~Our Brand~ 2~ Our brand takes the Spirit of Australia to the worldx Qantas is one of Australia’s best known brands and Doctor Service in the early years, to operating supply the Qantas tail is one of the most evocative symbols drops and evacuation flights in World War II, to of Australia at home and around the world. providing free flight and freight assistance for stranded Australians and local communities in Asia following Our relationship with Australia has been built over 85 the 2004 Boxing Day tsunami. years of serving the community and, today, our airline holds a unique position in the hearts of Australians. Our brand encompasses a community spirit, a pioneering nature, a professional style of service, a We have always been more than just an airline. The tradition of safety excellence and a reputation for Spirit of Australia has provided emergency support innovation – all delivered with a distinctly Australian for decades – from partnering with the Royal Flying personalityx 2 3 3 Our Customers > Our Brand Our Priority Spirit of Australiax Our Future Our Business Our Customers Our Brand > Our Priority Spirit of Australiax Our Future Our Business 4 Qantas Annual Report 2005 ~Our Priority~ 3~ There is no greater priority than safety and securityx Our reputation for safety is unparalleled. Our security is among the best in the industry. Some 90 security experts from backgrounds including police Behind our commitment to safety is a team of services, security agencies and the armed forces – dedicated professionals with unrivalled expertise in backed up by a 1,500-strong team of security officers the aviation industry. The Qantas Safety department in Australia – protect our customers and staff. includes highly motivated and experienced staff in the areas of flying operations, safety management We are continually upgrading and modifying our and incident investigation. procedures to meet changing circumstances as we work closely with governments, regulators and airport Qantas is renowned for the most exacting standards authorities in Australia and overseas to ensure we in engineering and pilot training. We extend those remain the safest and most secure airline in the world. standards to our cabin crew, with thorough training in safety, medical and emergency procedures. The safety and security of our customers, staff and aircraft, in the air and on the ground, is our number one priorityx 5 Qantas Annual Report 2005 ~Our Future~ 4~ Investment and innovation help shape our futurex We have a long history of innovation – Qantas was the Investment in technology allows Qantas to provide first and only airline to build its own aircraft in 1926, customers with the best possible service, whether it is the pioneer of round-the-world services in 1958 and Australia’s most visited travel website with 15 million the inventor of Business Class in 1979. visitors a month or our QuickCheck kiosks that allow customers to check-in in under a minute. In 2007, we will start a new chapter of innovation, with state-of-the-art product and interiors on our We will continue to invest in the most up-to-date new A380s providing unsurpassed levels of comfort innovations to enable Qantas to offer a premium and entertainment. end-to-end experience for customersx The A380 is the cornerstone of our ambitious $18 billion 10-year investment program, embarked on in 2000. As well as new aircraft, the program includes inflight product, terminal developments and airport lounges that are among the best in the world for business or relaxing. 6 7 Our Customers Our Brand Our Priority Spirit of Australiax > Our Future Our Business Our Customers Our Brand Our Priority Spirit of Australiax Our Future > Our Business 8 Qantas Annual Report 2005 ~Our Business~ 5~ Being a good business is as important as being a great airlinex In an industry that has lost more than US$35 billion Qantas is also pursuing growth opportunities in since 2001, Qantas is one of a very small number of associated businesses to diversify earnings sources airlines that has been consistently profitable. and provide a buffer against the cyclical nature of its flying businesses. Qantas is as committed to providing good returns for shareholders as it is to providing the best product and We realise that cost control is essential to our business service for its customers. and have achieved cost and efficiency savings of $1 billion in the past two years. We will continue to Because growth is fundamental to our business, target a further $2 billion in savings over the next Qantas is looking for profitable expansion in high-yield three years. full-service markets in Australia and internationally. At the same time, we are growing our value-based Since listing on the Australian Stock Exchange in 1995, airlines, such as Jetstar, to compete effectively in Qantas has provided total shareholder return of more leisure markets. than 340 per centx 9 Passengers Carried Passengers 05 32,658 04 30,076 03 28,746 02 27,128 (000) 01 22,147 Revenue Sales andOperating 05 12,648.8 04 11,353.7 ($M) 03 11,374.9 Highlights~ ~Performance 02 10,968.8 Spirit of Australia of Spirit 01 10,188.2 10 to MembersofQantas Net ProfitAttributable 05 763.6 04 648.4 03 343.5 02 428.0 ($M) 01 415.4 (Cents perShare) Ordinary Dividends 05 10 10 20.0 04 8 9 17.0 03 8 9 17.0 02 8 9 17.0 01 11 9 20.0 Qantas Annual Report 2005 ~Report from the Chairman and Chief Executive Officer~ Margaret Jackson Geoff Dixon Chairman Chief Executive Officer In the decade since its privatisation, Qantas has delivered consistent returns to shareholders, employed large numbers of Australians and provided international and domestic aviation services that are regarded as being among the world’s best. To our fellow shareholders Qantas celebrated an important milestone on 31 July 2005 Qantas reported a profit before tax of $1,027.2 million for – the 10th anniversary of its listing on the Australian Stock 2004/05, a 6.5 per cent increase on last year’s result of Exchange. $964.6 million. Net profit after tax was $763.6 million, up 17.8 per cent from last year. Revenue for the year totalled As well as dealing with the huge cultural, financial and $12.6 billion, an increase of $1,295 million or 11.4 per cent. operational changes associated with the transition from a government-owned company to a fully-privatised business, The Directors declared a fully franked final dividend of Qantas has weathered one of the most turbulent periods 10 cents per share. Dividends for the full year total 20 cents in aviation, particularly in the past five years. per share, three cents higher than last year. Since privatisation, Qantas has grown revenue by 77 per The main drivers of Qantas’ record result included: cent and provided total shareholder return of more than x the successful introduction of Jetstar, which provided 340 per cent. Qantas with strong competitive business models in all Over the past 10 years, Qantas has also: sections of the domestic market – full-service, value-based and regional; x grown staff numbers by almost 30 per cent from 30,000 in 1995 to more than 38,000 today; x an improvement in yields, excluding the unfavourable impact of foreign exchange rate movements, of x more than doubled the number of passengers carried 2.0 per cent; each year, from 16 million in 1995 to more than 32 million in 2005; x cost and efficiency savings of $545 million from the Sustainable Future Program (SFP); x increased the number of flights it operates from 1,900 services a week (including 250 international x a unit cost reduction, before the impact of unfavourable services) to more than 5,000 a week (including 600 fuel cost movements, of 5.8 per cent; and international services); x a continued investment in product and service.
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