Qantas Airways Limited · ASX:QAN
Qantas Airways — Corporate Update (August 2011)
12 slides from Qantas Airways's corporate update, Aug 24, 2011
Slide 1: Building a Stronger Qantas
Qantas Airways Limited Building a Stronger Qantas August 2011 Executive Summary [ Significant strategic developments announced today [ Initial Phase of comprehensive plan to turnaround the Qantas International business [ Building on successful Pan-Asia growth with launch of Jetstar Japan in 2012 [ U
Slide 2: Strategy: Building On Our Strong Domestic Business
Strategy Deliver Sustainable Returns to Shareholders Safety is always our first priority Building on our strong domestic business Profitably Deepening FFP1 Growing our Transforming building on 65% Growing Jetstar member and portfolio of Qantas market share in Asia partner related International throu
Slide 3: Transform Qantas International: Transformation Plan
Transform Qantas International 5 Transformation Plan 5 Year Transformation Plan Pillar 1 To be one of the world’s best Customer premium airlines, setting global excellence standards for long haul travel while delivering attractive returns to shareholders Pillar 4 Pillar 2 Transform Ongoing Qantas St
Slide 4: Clear Objectives Established; Customer Excellence
Clear Objectives Established Short term Long term Return Sustainably exceed Objectives Qantas International cost of capital for to profitability Qantas Airline segment1 Milestones [ Reduce losses of Qantas [ Profitably grow earnings of International business then improve International business profi
Slide 5: Strengthen Asia; Deepen and Broaden Alliances
Pillar 2 Strengthen Asia Strengthen Asia [ Intention to invest in a new premium, full-service airline based in Asia under a new brand [ Participate in the frequency and network advantage of being a hub carrier [ Enable the Group to offer customers same-day travel from Australia to Asia and increase
Slide 6: Ongoing Business Improvement; Reduced Capex - Qantas International
Pillar 4 Ongoing Ongoing Business Improvement business improvement Right aircraft, Network right routes optimisation Margin improvement 11 Pillar 4 Ongoing Reduced Capex - Qantas International business improvement [ Significantly reduced capital investment in underperforming Qantas International [ R
Slide 7: People; Next Steps
People [ About 1,000 roles will be redundant [ Affecting positions across Management, Pilots, Cabin Crew, Engineering and Airport Administration [ Substantial voluntary redundancy programs [ Opportunities for alternative roles and redeployment in the Group [ Opportunities to take leave without pay d
Slide 8: Grow Jetstar in Asia
Grow Jetstar in Asia 15 Jetstar well-established in Asia [ Jetstar Group is one of the fastest growing airlines in Jetstar Asia the Asia Pacific region Route Map – Operations based across two continents and four countries – Servicing 17 countries, 56 destinations – Combined operating fleet of 78 air
Slide 9: Jetstar Japan to launch in 2012
Jetstar Japan to launch in 2012 [ First true LCC in Japanese market [ JAL and Mitsubishi strong local partners [ Economic interests – Jetstar and JAL 42%, Mitsubishi 16% [ Equal voting interests [ Large market with low LCC penetration [ Leverages strong Jetstar brand position [ Rapid growth to 24 ai
Slide 10: A320 Fleet Order - Disciplined Investment
A320 Fleet Order - Disciplined Investment Indicative No. Aircraft Indicative Flexibility Timing1 & Type Allocations SHORT TERM 32 x A320 Configured to 24 aircraft 8 aircraft enable flexible to Jetstar Japan to start allocation FY13 - FY16 off QAN new premium airline balance sheet based in Asia2 New
Slide 11: Capital Management; Flexible Investment Profile
Capital Management [ Planned net capital expenditure of $2.5b in FY12 and $2.8b in FY13 [ Significant cash reserves - over $3.4b at 30 June 2011 [ $315m unsecured syndicated loan extended to April 2015 - upsized to $450m [ Mandated funding already in place for FY12 aircraft deliveries including 2 x
Slide 12: Summary
Summary 23 Summary [ Initial Phase of comprehensive plan to turnaround the Qantas International business [ Continued focus on customer excellence and premium product positioning [ Strengthen our presence in Asia with intention to invest in a new premium airline [ Deepen and broaden alliances [ Signi