Qantas Airways Limited · ASX:QAN
Qantas Airways — Macquarie Australia Conference 2012
17 slides from Qantas Airways's conference presentation, May 4, 2012
Slide 1: The Qantas Group - A Strong, Sustainable Future
The Qantas Group ‐ A Strong, Sustainable Future Alan Joyce, CEO Qantas Airways Macquarie Australia Conference 4 May 2012
Slide 2: Overview
Overview • Fleet renewal now substantially complete • FY13 capital expenditure reduced by a further A$400m to A$1.9b • Profitably building on our 65% domestic market share • Realising benefits of Qantas International transformation ‐ over $300m identified • Delivering targeted, value‐driven investme
Slide 3: Qantas Group Strategy
Qantas Group Strategy DELIVER SUSTAINABLE RETURNS TO SHAREHOLDERS Safety is always our first priority Building on our strong domestic business: Profitably building Deepening Growing Transforming Growing on 65% market FFP1 member our portfolio Qantas Jetstar share through and partner of related Inter
Slide 4: Building on our Strong Domestic Business
Building on our Strong Domestic Business Domestic Domestic Capacity market share % (ASKs millions) 100% 60,000 90% 50,000 80% 70% 1% Target market share (65%) 40,000 60% 10% 12% 15% 16% 17% 18% 20% 50% 30,000 40% 74% 74% 30% 67% 20,000 52% 56% 54% 52% 51% 20% 47% 46% 45% 10,000 10% 0% 0 FY01 FY02 FY
Slide 5: The world's best domestic travel experience
Building on our Strong Domestic Business The world’s best domestic travel experience 5
Slide 6: On Time Performance - Key driver of customer choice
Building on our Strong Domestic Business On Time Performance – Key driver of customer choice • Outperforming major competitor in all months not impacted by industrial dispute 2011 and 2012 ON TIME PERFORMANCE (OTP)1 90% 86% 82% 78% 74% Virgin Australia Qantas 70% Jan Feb Mar Apr May Jun Jul Aug Sep
Slide 7: Growing and enhancing Qantas Frequent Flyer
Building on our Strong Domestic Business Growing and enhancing Qantas Frequent Flyer More rewarding and faster ways to earn and redeem points A better network and more destinations Superior program enhancements ‐ eg Platinum One • Platinum One Special service team – 24/7 • Exclusive access to extra
Slide 8: Transforming Qantas International
Transforming Qantas International Clear Financial Objectives – Over $300m annual benefits identified SHORT TERM LONG TERM OBJECTIVES Return Qantas international to profitability Sustainably exceed cost of capital for Qantas Airlines1 TRANSFORMATION INITIATIVE ANNUAL INDICATIVE TIMING BENEFITS FY12 F
Slide 9: Delivering exceptional customer experiences
Transforming Qantas International Delivering exceptional customer experiences FLEET MODERNISATION PROGRAM Destination Origin Product Status UK SYD/MEL A380 Europe SYD B744 United States1 SYD/MEL/BNE A380/B7442 SYD (DFW) B7442 SYD/MEL/ SE Asia3 BNE/PER A3304 NE Asia SYD A380 SYD/MEL/BNE A3304 Japan S
Slide 10: Jetstar Group: Capitalising on attractive growth opportunities
Growing Jetstar in Asia Jetstar Group: Capitalising on attractive growth opportunities JETSTAR GROUP – GROWING NETWORK OF ROUTES1 4 6 109 119 82 96 98 59 67 7 3 31 39 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 1H12 2 BUSINESS OWNERSHIP LAUNCH BASED AIRCRAFT2 1 Jetstar Australia 100% 2004 44xA320s/A321s
Slide 11: Jetstar Japan: On-track
Growing Jetstar in Asia Jetstar Japan: On‐track • Services to start ahead of schedule in July 20121 – AOC awarded – First aircraft delivered • Funding – Lessor mandates issued for all 24 aircraft • Successful commercial launch of initial network – Domestic and international leisure focus • Qantas Gr
Slide 12: Establishing Jetstar Hong Kong
Growing Jetstar in Asia Establishing Jetstar Hong Kong • First LCC carrier based in Hong Kong – Major transit‐hub and gateway to China (53m passengers in 2011) – JV partnership with China Eastern Airlines (CEA), first ever with a Chinese airline • Qantas Group investment over 3 years up to ~US$99m •
Slide 13: Demonstrating further fleet flexibility
Fleet Investment Demonstrating further fleet flexibility • Further reduced FY13 planned net capex by $400m to $1.9b • FY14 planned net capex no more than $1.9b, with substantial flexibility retained PLANNED NET CAPITAL EXPENDITURE ($B) BREAKDOWN OF CAPEX COMMITMENTS1 ($B) Qantas Group replacement an
Slide 14: Fleet renewal substantially complete
Fleet Investment Fleet renewal substantially complete CAPITAL EXPENDITURE ($B) & FLEET AGE (YRS) 9.6 Total capex reductions announced since Feb 20121 3 9.2 $1.1bn 2.5 2.4 2.3 2 8.8 1.9 1.9 1.5 1.7 8.4 1.4 1.5 1 8.0 0.5 7.6 0 FY08 FY09 FY10 FY11 FY12F FY13F FY14F Capex ($B) Group Avg Fleet Age LHS (Y
Slide 15: Summary
Summary • Strategy is positioning the Qantas Group for success — Building on our powerful domestic franchise — Clear pathway to return Qantas International to profit — Targeted, value‐driven investments for Jetstar in Asia — Reinforcing customer loyalty • Disciplined and prudent approach to capital
Slide 16: Outlook
Outlook • 2H12 operating environment and economic outlook remains challenging and volatile • Group operating expectations for 2H12: – Yield (excluding FX) to increase by 1.5‐2.5% in 2H12 compared to 2H11, following fare increases and fuel surcharges announced in February and March 2012. The impact o
Slide 17: Disclaimer & ASIC Guidance
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 4 May 2012. The information i