Qantas

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BUILDING A STRONGER QANTAS – NEW INTERNATIONAL STRATEGY

SYDNEY, 16 August 2011: The Qantas Group today announced the first phase of a new strategy to build a

truly modern, customer-focused and competitive global aviation business.

Qantas Chief Executive Officer Alan Joyce said the rebuilding of Qantas International would begin today.

“Qantas International is a great airline with a proud history,” Mr Joyce said.

“But it is suffering big financial losses and a substantial decline in market share. To reverse that decline we

need fundamental change.

“Qantas International takes up enormous amounts of capital, and our cost base is around 20 per cent higher

than that of our key competitors. To do nothing, or tinker around the edges, is not an option.

"We have established a five-year plan that has the objective, first, of returning Qantas International to

profitability in the short term. In five years, the Qantas flying businesses, domestic and international

combined, will exceed the cost of capital on a sustainable basis.

“It is a huge task but we start from a good position. The Qantas Group is a large, stable and profitable

enterprise with exposure to different markets and business models. We have a powerhouse portfolio of

brands from Jetstar to Qantas Domestic and QantasLink, Qantas Freight to Qantas Frequent Flyer.

“At the end of this process, we expect that we will be established on a competitive global platform, with high

growth potential across all markets. Instead of being restricted to an Australian-based international airline,

Qantas International will be participating in regional Asian opportunities, and in the world beyond.

“We will still be the best premium airline for Australia’s global travellers. Our Frequent Flyer program will offer

the best incentives and benefits. We will better reward loyal Qantas passengers and attract new ones. At the

same time we will be doing things smarter and more efficiently,...