38 39

Funding our Business In the international arena, competes with some carriers that pay no corporate tax and with many Government owned carriers, somef o which benefit from a ‘Sovereign

CHAPTER SIX Knowledge Risk Rating’ allowing them to carry debt levels far higher than privately-owned . Many carriers are also supported indirectly by governments, for example, airlinesn i the US can rely on Chapter 11 bankruptcy protection. The Qantas Sale Act, designed by the Government to protect Qantas’ position – Regulatory Constraints — o access t The Aviation Industry asn a Australian company, limits total routes and timeslots is constrained by i recognised as one of the world’s foreign ownership of Qantas to 49 per cent. governments and authorities In particular, there is a very strong link most complex and challenging industries, A side-effect of this limit is to constrain – External Shocks — economic downturns, between premium yields ( on First, in t which i can be hard to make a sustained Qantas’ access to global capital, making it security threats, health pandemics, extreme Business, Premium Economy or full-fare profit. A number of factors contribute to this: harder and more costly to raise funds for weather and natural disasters can all affect Economy tickets) and ASX (Australian – High Costs — High fixed costs (e.g. aircraft expansion. industry returns Securities Exchange) top 200 company and airport infrastructure) and unstable Allf o this means that to grow and prosper share prices. This is because this index variable costs (e.g. fuel) Qantas has to work much harder and be Economics tracks the expected future earnings of leaner and more efficient. It is a credit to – Labour Intensive — labour costs account corporate — if high, then corporate for a very high proportion of overall costs The Link between the Global Economy Qantas’ financial stewardship that it is the and Airline Travel budgets, part of which includes spend on (around5 2 per cent) only airline in the world to have continually The strength of the economy greatly affects , will be more generous. – Low Margins — airfares have continued to heldn a investment-grade credit rating demand for airline travel. In simple terms, in falln i real terms since the Second World The Impact of Exchange Rates which enables the company to borrow a strong economy with low unemployment, War, and the margin on the sale of a ticket is Foreign exchange rates have an impact on moneyt a a preferential rate. more people will have more disposable lown i comparison with other industries airline revenue. income and are therefore able to afford to – Perishable Product — when a flight leaves A stronger leads to: spend more on travel. with empty seats there is no further – More outbound travel — Australians choose FAST opportunity to sell those seats to holiday overseas rather than at home FACT – Low Barriers to Entry —ts i i relatively easy for because their dollars will buy more abroad a new airline to set up in Australia – Less inbound travel — Australia becomes AFTER FUEL, 2006 foreign exchange movements are – Over-Capacity — competition from lower- launches long relatively expensive for overseas visitors Qantas’ second largest financial risk cost and government-supported airlines haul international – Less foreign earnings — the value of money (Qantass i exposed to 80 different serviceso t Asia and earnt from tickets sales overseas is worth Hawaii, and further foreign currencies) extends the in less once converted into Australian currency 2008 with Jetstar Pacific (Vietnam) 40 AVIATION KNOWLEDGE 41

Alliances Air Services Agreements FAST FACT Airlines enter into cooperative Air Services Agreements (ASAs) are arrangements with each other in order negotiated between governments, typically to expand their network reach, improve bilaterally, and set out the entitlements the customer experience and deliver The three largest passenger airline of each country’s respective airlines, THE AIRLINE INDUSTRY is a low-margin business — Australian banks operational efficiencies. Customers benefit alliances are , and regarding which cities may be served, produce similar revenues to Qantas, but enjoy oneworld from a broader range of flight destinations SkyTeam. The alliance was frequency, routing, aircraft type and profit margins 10 times greater than Qantas and frequencies, plus enhanced services launchedn i 1999 by founding members limitations on passenger and cargo suchs a reciprocal frequent flyer programs. Qantas, , traffic that may be carried between Airlines benefit from cost savings through and . In addition to particular points. more efficient use of airport facilities and oneworld partners, Qantas has codeshare In recent years, many of Australia’s ASAs other resources, and the opportunity for relationships with more than 25 other have been progressively liberalised, as Aviation Industry revenue growth. leading airlines, and interline/ many countries move towards more ‘open and Governing Bodies through-check agreements in place with skies’. However, Australia’s ASAs with ICAO — International over 200 airlines globally. some countries, including France, remain Organisation A Joint Service Agreement (JSA) with very restrictive which limits the Qantas British Airways has been in operation Group’s ability to expand into otherwise IATA — International Air since 1995, and gives Qantas and BA attractive markets. Association The three largest regulatory approval to coordinate Once air services rights are granted, IASC — International Air Services passenger airline networks, schedules and pricing on Qantas’ Government and International Commission their ‘ Route’ services between Relations department generally applies to ASA — Airservices Australia alliances are Australia, Asia and . The partnership the International Air Services Commission CASA — Civil Authority oneworld, includes codesharing on both carriers’ (IASC) for an allocation of capacity to (Australia) flights, reciprocal frequent flyer customer enable passenger and/or freight services ATSB — Australian Transport Safety Bureau Star Alliance benefits, shared lounges and joint toe b operated by Qantas, Jetstar or OTS — f Office o Transport Security airport operations/sales offices. The JSA . (Australia) and SkyTeam scope also includes both carriers’ freight DIT — Department of Infrastructure operations. and Transport (Australia)

2008 The first Qantas A380 commercial flight from to on0 2 October 42 AVIATION KNOWLEDGE 43

‘’ Second Freedom Fifth Freedom Seventh Freedom Ever wondered why Qantas does not The o right t make a landing in another The right of an airline to carry passengers, The right of an airline to carry passengers, pickp u domestic passengers on its country for technical reasons only, e.g. to mail and freight cargo from one foreign mail and freight cargo between two foreign refuel—without picking up or setting down countryo t another foreign country while en countries on a route outside of its home Los Angeles–New York sector? passengers or freight. routeor t o from the airline’s home country, country, for example: To n land a aircraft in a foreign country, or (Airlines do not usually exercise this right due to for example: evenoy t fl within its airspace, is a privilege cost reasons) United grantedy b the government of that country. Australia Kingdom Historically, international agreements Third Freedom (Pick-up) (Set-down) recognised eight levels of privilege, known The o right t carry passengers, mail and (Qantas does not currently exercise this right) as ‘Freedoms of the Air’, which are still freight cargo from the airline’s home country Singapore (Pick-up and Set-down) referredo t today in the airline industry: to another country, for example: Eighth Freedom () Sixth Freedom First Freedom The right of an airline to carry passengers, Australia Singapore The right of an airline to pick-up mail and freight cargo between cities within The right of an airline to overfly another (Pick-up) (Set-down) passengers, mail and freight cargo in a a foreign country, for example: country without landing, for example: foreign country and transport them to another foreign country having stopped New York Fourth Freedom offn e route at the airline’s home country. Australia (Set-down) Australia Singapore The o right t carry passengers, mail and Thiss i a combination of Fourth and freight cargo from another country to the Third Freedoms. Los Angeles (Pick-up) (Overfly) airline’s home country, for example: (Qantas does not currently have this right)

Singapore Australia (Pick-up) (Set-down)

FAST FACT

THE COMPOSITION OF MARKET SHARE has changed over time, with mid-point hub 2009 carriers, such as and Jetstar commences domestic New , expanding share at the expense of Zealand services end-of-line carriers such as Qantas Aerial photo © 2010 Nina Duric 44 45

Time Zones Plane Spotting The earth’s surface is divided into 24 time asMT G (Greenwich Mean Time) or UTC zones. Time differences between the zones (Universal Coordinated Time) or just ‘Zulu’, are measured east or west of the ands i the internationally agreed standard 0 degree meridian (or line of longitude) time. Many countries set their clocks ahead which passes through Greenwich, England. one hour during summer (Daylight Savings).

CHAPTER SEVEN The n time o this meridian is referred to

0900 1000 1100 1200 1300 1400 1500 1600 1700 1800 1900 2000 2100 2200 2300 2400 0100 0200 0300 0400 0500 0600 0700 0800 0900 1000 1100 1200

23 21 3 5 14 22 6 13 19 15 7 4 8 LONDON 14 17 18 FRANKFURT VANCOUVER TORONTO BEIJING CHICAGO ROME NEW YORK 12 14 20 TOKYO WASHINGTON LOS ANGELES 1530 SHANGHAI OSAKA DALLAS 21 FORTH WORTH 15 17 14 TAIPEI DUBAI 1745 HONOLULU 1630 19 HONG KONG 12 MUMBAI 1830 MANILA 13 15 HO CHI 16 MINH CITY SINGAPORE 21 INTERNATIONALINTERNATIONALLINE LINE DATE DATE 19 PORT JAKARTA MORESBY 7 8 DENPASAR 22 9 DARWIN 14 CAIRNS NADI 2130 NOUMEA 22 JOHANNESBURG 20 BUENOS AIRES AUCKLAND MELBOURNE WELLINGTON HOBART CHRISTCHURCH 46 PLANE SPOTTING 47

FAST FACT Airport Codes Airline designators are two-character Australia Asia-Pacific codes assigned by IATA. The code forms Adelaide ADL Auckland AKL the first two letters of the . The Alice Springs ASP Bangkok BKK codes for some of the world’s airlines are Avalon-Melbourne AVV Christchurch CHC listed below. Ayers Rock- AYQ Denpasar DPS Brisbane BNE Ho Chi Minh City SGN SU KE Broome BME Hong Kong HKG Aerolineas Argentinas AR LAN (Latin American) LA Phonetic Alphabet Cairns CNS Jakarta CGK AC LH A—Alpha Canberra CBR Manila MNL CA Malaysian MH B—Bravo Darwin DRW Mumbai BOM AF Malev MA C—Charlie Gold Coast-Coolangatta OOL Nadi, Fiji NAN AI Mexicana MX D—Delta Gove Nhulunbuy GOV Noumea, New Caledonia NOU Air NZ NW E—Echo Hobart HBA Osaka – Kansai KIX Air Pacific FJ Pakistan Int. Airlines PK F—Foxtrot Launceston LST Phuket HKT AZ PR G—Golf H—Hotel Melbourne–Tullamarine MEL , PNG POM American Airlines AA Qantas Airways QF I—India Perth PER Queenstown ZQN British Airways BA RJ J—Juliet Sydney SYD Shanghai-Pudong PVG Cathay Pacific CX (Russia) S7 K—Kilo Townsville TSV Singapore SIN CI Singapore Airlines SQ L—Lima Tokyo – Narita NRT China Eastern MU SA M—Mike Wellington WLG CO WN N—November Europe, Americas and Africa Delta Airlines DL TG O—Oscar Dragonair KA Tiger Airways (Aus) TT P—Papa Buenos Aires, Argentina EZE Emirates EK Tiger Airways (Sing) TR Q—Quebec Dallas, Fort Worth DFW EY UA R—Romeo Frankfurt FRA AY US Airways US S—Sierra Honolulu HNL T—Tango GA RG Johannesburg JNB U—Uniform HA VN London Heathrow LHR V—Victor IB VA Los Angeles LAX W—Whisky JL VS New York JFK JFK X—X-ray Jetstar JQ Virgin Blue DJ Y—Yankee FAST IN 1945, Jetstar Asia 3K Z—Zulu it cost 2.5 times the average FACT Jetstar Pacific BL annual salary to fly Sydney- 2010 London return, today it costs KLM KL Qantas celebrates less than two weeks’ wages its 90th birthday 48 PLANE SPOTTING 49

M S MCT — Minimum Connecting Time — a Seat Factor — The percentage of seats Misconnection is when an arriving/departing occupied by passengers e.g. 80%: flight does not meet the minimum time measures an airline’s overall utilisation requiredo t transfer to another flight (RPKs divided by ASKs) N Seat Pitch — The distance from the back of one Narrow Bodied Aircraft — aircraft with a single seato t the back of another aisle (e.g. 737) Slip — Overnight crew layover Net Fare — Published fare less sale discount Slot — A confirmed date/time at an arrival/ (and rebate) departure (an airport has a limited No Show — A passenger who holds a number and airlines must apply for them) reservation, but does not travel on the flight T O Tariff — The fares and rates applicable to the OCS —n O Company Service: internal mail transportation of persons and property and Airline and Terms F Offline Station — o A city t which an airline does the rules governing them not fly, but maintains its own representation Through Check-in — A passenger checks in A FOC — f Free o Charge P and receives a pass for an onward ASK — Available Seat Kilometres — available G Payload — Passengers/Freight (Load — any connecting flight from another airport seats multiplied by kilometres flown GDS — Global Distribution System other items carried) U ATB — Air Turn Back — when an aircraft makes Great Circle Route — The shortest distance PAX — Passengers ULD — Unit Load Device — pallets/containers an unscheduled return to the departure port between two points on the globe PNR — Passenger Name Record: the details used for uplifting freight and baggage B GSA — General Sales Agent — a person/ heldn i the reservations system UM — Unaccompanied Minor (child Blocks — n When a aircraft comes to a complete organisation representing an airline in Q travelling alone) stop and the chocks are placed under another country/region where the airline Qantas Paper — The ticket stock issued by W the wheels does not have its own sales office Qantas for which Qantas receives payment: Wet Lease — When aircraft is leased out with Black Box — Flight Recorders are H travel may be on Qantas or another carrier crewa ( dry lease is without crew) actually orange Hold — Section of the aircraft for baggage, mail R Wide Bodied Aircraft — Aircraft with more than C and freight Ramp — Tarmac area where the aircraft one aisle (e.g. ) Codeshare —n A arrangement whereby the Hub —n A airport/city which is a central point is parked Y Marketing Carrier is the airline on which the for passenger transfers Registration — Unique identification code Yield — The amount of revenue earned per passenger is ticketed and the Operating I ofn a aircraft allocated by national passenger per kilometre (net revenue divided Carriers i the airline whose ‘metal’ performs Interline — n Travel o another airline aviation authority by RPKs) the service Inventory — The number of seats available for RPK — Revenue Passenger Kilometres: the Z CRS — Computer Reservations System sale and seats sold numberf o paying passengers carried, Zero Fuel Weight — The weight of an aircraft D J multiplied by the number of kilometres flown with passengers and cargo, but without fuel Direct Flight — A flight which may include Jump Seat — The seats behind the flight crew stopsn e route, but no change of aircraft (a in the cockpit Non-Stop flight is a direct flight with no stops) L DG— Dangerous Goods Load Factor — The proportion of seats/freight space sold and used versus the total seats/ 2012 E The f first o the Qantas Group ETA/ETD — Estimated Time of freight space available next generation aircraft due to be delivered Arrival/Departure 50 OTHER USEFUL INFORMATION 51

Contact Details Useful Telephone Numbers

Registered Address Qantas Airways Limited If calling from overseas, use the international dialing code +61. Building, A 203 Coward Street MascotSW N 2020 Australia Ambulance (Australia only) 000 APC Reception Mascot (02) 9691 9411 (internal 29411) Contact Numbers Brisbane Administration (07) 3307 9153 (internal 79153) Phone (02) 9691 3636 Building A Reception Mascot (02) 9691 4445 (internal 24445) Fax (02) 9691 3339 Building C Reception Mascot (02) 9691 2884 (internal 22884) Website qantas.com Building E Reception Mascot (02) 9691 0238 (internal 20238) Intranet http://qfintranet.qantas.com.au Corporate Communication (for all Media Enquiries) (02) 9691 4773 (out of hours 0418 210 005) ABN 16 009 661 901 Customer Care (02) 9691 3399 (internal 23399) Employee Assistance Program (counselling) 1300 360 364 (overseas +61 2 8295 2292) Fire (02) 9691 8888 (internal 28888) ID Services (02) 9691 1199 (internal 21199) IT Helpdesk (Global Service Centre) (02) 9691 6666 (internal 26666) Jetstar Telephone Sales 13 15 38 Joey Club Brisbane (07) 3114 1270 Joey Club Melbourne (03) 9336 5050 Joey Club Sydney (02) 9693 2599 Melbourne Administration (03) 8336 4190 (internal 64190) PeopleConnect 1300 303 411 (internal 86111) Qantas Centre of Service Excellence (02) 9578 4900 (internal 84900) Qantas Staff Credit Union 1300 747 747 Qantas Superannuation 1300 654 384 (overseas +61 2 9374 3930) Qantas Switchboard (02) 9691 3636 (internal dial 9) Security (02) 9691 1818 (internal 21818) Staff Travel (02) 8303 4444 (internal 34444) or qantas.com/stafftravel Telephone Sales 13 13 13 Uniforms (02) 9691 1450 (internal 21450) Whistleblower Hotline 1800 855 212 (overseas +61 2 8266 1453) Qantas Stationery Item Code: 91D00067

Publication Details Production: People Performance and Culture, Qantas Design: Surveillance.net.au Images: Qantas Media Bin Printing: TMA Group Paper: Impact 100% recycled (100% post-consumer waste, Forest Stewardship Council certified) Information correct as of June 2011

The Little Book Little The

A Guide for Employees of the Qantas Group Group Qantas the of Employees for A Guide the little book

A Guide for Employees of the Qantas Group