Annual Report 2019 Anchorage
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For personal use only ANNUAL REPORT 2019 ANCHORAGE COPENHAGEN MOSCOW MANCHESTER MINSK DUBLIN AMSTERDAM SASKATOON LONDON BRUSSELS DÜSSELDORF KAMLOOPS CALGARY REGINA FRANKFURT ASTANA VANCOUVER KELOWNA WINNIPEG PARIS MUNICH VICTORIA SPOKANE ZURICH ST JOHNS’ SEATTLE QUEBEC GENEVA MILAN BOZEMAN PORTLAND OTTAWA MONTREAL VENICE MINNEAPOLIS GRAND RAPIDS TURIN BELGRADE BOLOGNA CHANGCHUN JACKSON HOLE HALIFAX GENOA TORONTO SAPPORO BOISE ROCHESTER FLORENCE SPLIT MILWAUKEE SYRACUSE DUBROVNIK MADISON ROME DETROIT BUFFALO BOSTON SKOPJE CHICAGO CLEVELAND BARCELONA BARI OMAHA HARTFORD ISTANBUL SALT LAKE CITY MADRID NAPLES BRINDISI DES PITTSBURGH NEW YORK BEIJING MOINES DAYTON DENVER INDIANAPOLIS COLUMBUS PHILADELPHIA LAMEZIA TERME RENO ASPEN BALTIMORE ATHENS TIANJIN SACRAMENTO KANSAS CITY CINCINNATI WASHINGTON PALERMO TAIYUAN ST LOUIS LOUISVILLE CATANIA SEOUL SAN FRANCISCO RICHMOND SAN JOSE ALBUQUERQUE LAS VEGAS TULSA NASHVILLE NORFOLK YONAGO KNOXVILLE TOKYO RALEIGH-DURHAM MEMPHIS CHARLOTTE OKLAHOMA CITY ATLANTA BEIRUT ISLAMABAD OKAYAMA NAGOYA RABAT XI’AN OSAKA LOS ANGELES PHOENIX HUNTSVILLE GREENVILLE-SPARTANBURG CASABLANCA FUKUOKA DALLAS NANJING BIRMINGHAM CHARLESTON SAN DIEGO LAHORE TUCSON AMMAN CHENGDU SHANGHAI KAGOSHIMA AUSTIN HANGZHOU HOUSTON JACKSONVILLE CHONGQING KUWAIT DELHI NEW NANCHANG SAN ORLEANS ORLANDO KATHMANDU CHANGSHA ANTONIO TAMPA BAHRAIN GUIYANG WEST PALM BEACH OKINAWA MONTERREY FORT LAUDERDALE DUBAI TAIPEI DAMMAM KARACH I KUNMING MIAMI MEDINA ABU DHABI XIAMEN AHMEDABAD DHAKA SAN JOSÉ DEL CABO RIYADH MUSCAT GUANGZHOU SHENZHEN LIHUE AL AIN KOLKATA MANDALAY HANOI HONG KONG HONOLULU PUERTO VALLARTA JEDDAH CANCÚN KAHULUI/MAUI GUADALAJARA HAIKOU COZUMEL KONA/HAWAII MUMBAI VISAKHAPATNAM CHIANG MAI SANYA MEXICO CITY SAIPAN HYDERABAD YANGON DA NANG MANILA BENGALURU BANGKOK SIEM REAP CHENNAI PHNOM PENH COIMBATORE HO CHI MINH CITY KOCHI KO SAMUI COLOMBO PHUKET KOTA KINABALU PENANG MALE BANDAR SERI BEGAWAN KUALA LUMPUR MEDAN MANADO SINGAPORE BALIKPAPAN KAVIENG PALEMBANG TIMIKA LIHIR ISLAND JAKARTA MAKASSAR RABAUL SEMARANG MT HAGEN GOROKA BANDUNG SURABAYA LAE PRAYA LABUAN BAJO YOGYAKARTA POPONDETTA KUPANG DENPASAR (BALI) PORT MORESBY (PAPUA NEW GUINEA) TUFI HONIARA (SOLOMON ISLANDS) CHRISTMAS ISLAND DARWIN COCOS (KEELING) ISLANDS APIA (SAMOA) LUSAKA KUNUNURRA CAIRNS NADI (FIJI) VICTORIA FALLS HARARE BROOME TOWNSVILLE PORT HEDLAND PORT VILA (VANUATU) MAURITIUS WHITSUNDAY COAST HAMILTON ISLAND KARRATHA MOUNT ISA NUKU’ALOF A (TONGA) RAROTONGA (COOK ISLANDS) MACKAY WINDHOEK ONSLOW CLONCURRY ROCKHAMPTON ALICE SPRINGS EMERALD GLADSTONE NEWMAN JOHANNESBURG BUNDABERG HERVEY BAY SUNSHINE COAST ULURU (AYERS ROCK) BRISBANE GOLD COAST DURBAN BALLINA BYRON KALGOORLIE COFFS HARBOU R TAMWORTH EAST LONDON PERTH PORT MACQUARIE CAPE TOWN NEWCASTL E ADELAIDE MILDURA SYDNEY PORT ELIZABETH ALBURY KERIKERI CANBERRA WHANGAREI AUCKLAND TAURANGA MELBOURNE HAMILTON ROTORUA NEW PLYMOUTH GISBORNE TAUPO NAPIER-HASTINGS LAUNCESTON PALMERSTON NORTH NELSON WELLINGTON BLENHEIM HOKITIKA HOBART CHRISTCHURCH TIMARU QUEENSTOWN DUNEDIN INVERCARGILL VIRGIN AUSTRALIA GROUP OUR NETWORK ROUTES LAUNCHED IN ANNUAL REPORT 2019 THE 2019 FINANCIAL YEAR: • Perth-Hobart • Perth-Gold Coast (seasonal) 466 • Sydney-Hong Kong For personal use only • Sydney-Wellington • Melbourne-Queenstown DESTINATIONS IN OUR • Newcastle-Auckland (seasonal) GLOBAL VIRTUAL NETWORK • Darwin-Denpasar (seasonal) ANCHORAGE COPENHAGEN MOSCOW MANCHESTER MINSK DUBLIN AMSTERDAM SASKATOON LONDON BRUSSELS DÜSSELDORF KAMLOOPS CALGARY REGINA FRANKFURT ASTANA VANCOUVER KELOWNA WINNIPEG PARIS MUNICH VICTORIA SPOKANE ZURICH ST JOHNS’ SEATTLE QUEBEC GENEVA MILAN BOZEMAN PORTLAND OTTAWA MONTREAL VENICE MINNEAPOLIS GRAND RAPIDS TURIN BELGRADE BOLOGNA CHANGCHUN JACKSON HOLE HALIFAX GENOA TORONTO SAPPORO BOISE ROCHESTER FLORENCE SPLIT MILWAUKEE SYRACUSE DUBROVNIK MADISON ROME DETROIT BUFFALO BOSTON SKOPJE CHICAGO CLEVELAND BARCELONA BARI OMAHA HARTFORD ISTANBUL SALT LAKE CITY MADRID NAPLES BRINDISI DES PITTSBURGH NEW YORK BEIJING MOINES DAYTON DENVER INDIANAPOLIS COLUMBUS PHILADELPHIA LAMEZIA TERME RENO ASPEN BALTIMORE ATHENS TIANJIN SACRAMENTO KANSAS CITY CINCINNATI WASHINGTON PALERMO TAIYUAN ST LOUIS LOUISVILLE CATANIA SEOUL SAN FRANCISCO RICHMOND SAN JOSE ALBUQUERQUE LAS VEGAS TULSA NASHVILLE NORFOLK YONAGO KNOXVILLE TOKYO RALEIGH-DURHAM MEMPHIS CHARLOTTE OKLAHOMA CITY ATLANTA BEIRUT ISLAMABAD OKAYAMA NAGOYA RABAT XI’AN OSAKA LOS ANGELES PHOENIX HUNTSVILLE GREENVILLE-SPARTANBURG CASABLANCA FUKUOKA DALLAS NANJING BIRMINGHAM CHARLESTON SAN DIEGO LAHORE TUCSON AMMAN CHENGDU SHANGHAI KAGOSHIMA AUSTIN HANGZHOU HOUSTON JACKSONVILLE CHONGQING KUWAIT DELHI NEW NANCHANG SAN ORLEANS ORLANDO KATHMANDU CHANGSHA ANTONIO TAMPA BAHRAIN GUIYANG WEST PALM BEACH OKINAWA MONTERREY FORT LAUDERDALE DUBAI TAIPEI DAMMAM KARACH I KUNMING MIAMI MEDINA ABU DHABI XIAMEN AHMEDABAD DHAKA SAN JOSÉ DEL CABO RIYADH MUSCAT GUANGZHOU SHENZHEN LIHUE AL AIN KOLKATA MANDALAY HANOI HONG KONG HONOLULU PUERTO VALLARTA JEDDAH CANCÚN KAHULUI/MAUI GUADALAJARA HAIKOU COZUMEL KONA/HAWAII MUMBAI VISAKHAPATNAM CHIANG MAI SANYA MEXICO CITY SAIPAN HYDERABAD YANGON DA NANG MANILA BENGALURU BANGKOK SIEM REAP CHENNAI PHNOM PENH COIMBATORE HO CHI MINH CITY KOCHI KO SAMUI COLOMBO PHUKET KOTA KINABALU PENANG MALE BANDAR SERI BEGAWAN KUALA LUMPUR MEDAN MANADO SINGAPORE BALIKPAPAN KAVIENG PALEMBANG TIMIKA LIHIR ISLAND JAKARTA MAKASSAR RABAUL SEMARANG MT HAGEN GOROKA BANDUNG SURABAYA LAE PRAYA LABUAN BAJO YOGYAKARTA POPONDETTA KUPANG DENPASAR (BALI) PORT MORESBY (PAPUA NEW GUINEA) TUFI HONIARA (SOLOMON ISLANDS) CHRISTMAS ISLAND DARWIN COCOS (KEELING) ISLANDS APIA (SAMOA) LUSAKA KUNUNURRA CAIRNS NADI (FIJI) VICTORIA FALLS HARARE BROOME TOWNSVILLE PORT HEDLAND PORT VILA (VANUATU) MAURITIUS WHITSUNDAY COAST HAMILTON ISLAND KARRATHA MOUNT ISA NUKU’ALOF A (TONGA) RAROTONGA (COOK ISLANDS) MACKAY WINDHOEK ONSLOW CLONCURRY ROCKHAMPTON ALICE SPRINGS EMERALD GLADSTONE NEWMAN JOHANNESBURG BUNDABERG HERVEY BAY SUNSHINE COAST ULURU (AYERS ROCK) BRISBANE GOLD COAST DURBAN BALLINA BYRON KALGOORLIE COFFS HARBOU R TAMWORTH EAST LONDON PERTH PORT MACQUARIE CAPE TOWN NEWCASTL E ADELAIDE MILDURA SYDNEY PORT ELIZABETH ALBURY KERIKERI CANBERRA WHANGAREI AUCKLAND TAURANGA MELBOURNE HAMILTON ROTORUA NEW PLYMOUTH GISBORNE TAUPO NAPIER-HASTINGS LAUNCESTON PALMERSTON NORTH NELSON WELLINGTON BLENHEIM HOKITIKA HOBART CHRISTCHURCH TIMARU QUEENSTOWN DUNEDIN INVERCARGILL CONTENTS 2 SNAPSHOT 4 CHAIRMAN’S REPORT 6 CEO’S REPORT 8 DIRECTORS’ REPORT For personal use only 41 FINANCIAL REPORT 100 INDEPENDENT AUDITOR’S REPORT 107 SHAREHOLDER INFORMATION 109 CORPORATE DIRECTORY Virgin Australia Group | Annual Report 2019 1 PASSENGERS CARRIED (MILLIONS) 24.9 25.5 23.7 24.2 22.3 20.0 19.4 19.3 18.6 2011 2012 2013 2014 2015 2016 2017 2018 2019 133* 9.8M 466 10,620 OPERATING FLEET VELOCITY MEMBERS DESTINATIONS IN OUR NUMBER GLOBAL VIRTUAL OF EMPLOYEES NETWORK KEY HIGHLIGHTS Aircraft operating in our We exceeded our We launched new Out of all major airlines sustainable aviation fuels target of an equal routes, including in Australia, Virgin trial flew more than one intake of males Sydney-Hong Kong, Australia Airlines was million kilometres to a and females for Sydney-Wellington, the most on time airline range of domestic and our 2018 Pilot Melbourne-Queenstown for departures and the international destinations Cadetship program and Perth-Hobart airline least likely For personal use only to cancel a flight We launched an We hosted the We celebrated 10 years international lounge world’s first dedicated of flying to Los Angeles network in Australia meditation flight with and New Zealand Sir Richard Branson * Operating fleet excludes aircraft that have been removed from operational service. Statistics have been rounded. Passengers Carried and Kilometres Flown 2 Virgin Australia Group | Annual Report 2019 include 100% of Tigerair Australia statistics from 1 November 2014. TOTAL REVENUE AND INCOME ($ BILLIONS) 5.83 5.42 5.02 5.05 4.75 4.31 3.92 4.02 3.27 2011 2012 2013 2014 2015 2016 2017 2018 2019 AVAILABLE SEAT KILOMETRES (BILLIONS) 51.2 48.6 46.0 47.0 46.8 41.8 42.2 39.8 37.1 2011 2012 2013 2014 2015 2016 2017 2018 2019 AWARDS Virgin Australia was awarded Virgin Australia was awarded Velocity Frequent Flyer Program World’s Best Cabin Crew for a five star rating by the won Best Redemption Ability 2019 by AirlineRatings.com, Airline Passenger Experience in the Middle East and Asia/ and named number five in the Association (APEX) for the Oceania region airline category Top Ten airline rankings as part second consecutive year. The at the Freddie Awards for the of its Airline Excellence Awards rating puts Virgin Australia in seventh year in a row For personal use only the top nine per cent of airlines worldwide to be given a five star rating through direct passenger rankings and feedback Virgin Australia Group | Annual Report 2019 3 CHAIRMAN’S REPORT The 2019 financial year was a challenging aviation market and all travellers today the lives of young Australians dealing with period for the Virgin Australia Group benefit from the strong competition he serious illness, hardship and mental health and the aviation industry more broadly. brought to the local industry. challenges. Virgin Australia is also there Subdued economic conditions, higher The focus of Board and management in times of crisis, to support communities fuel prices and a weaker Australian dollar now turns to consolidating the Group’s impacted by floods, cyclones and other all had an impact on the Group’s full year transformation and making important natural disasters.