Building a Strong 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

Underpinned by flexible fleet plan, including A320 investment and deferral of A380

deliveries

Transforming Qantas International: building sustainable returns for

shareholders

Continued focus on customer excellence and premium product positioning

Confirmed intention to invest in a new premium, full-service airline based in Asia

Restructured Joint Services Agreement with British Airways

Significantly reducing capital investment by US$2.3b1 in underperforming Qantas

International

Detailed FY11 results briefing on 24 August 2011 - no change to current

earnings guidance

1. Based on A380 list prices, actual prices paid are commercial-in-confidence

2

Strategy

Deliver Sustainable Returns to Shareholders

Safety is always our first priority

Building on our strong domestic business

Profitably

building on 65%

market share

through dual

brands

Deepening FFP1

member and

partner

engagement

Growing our

portfolio of

related

businesses

Transforming

Qantas

International

Growing Jetstar

in Asia

Evolving the customer and dual brand strategy

Engaging and developing our people

1. FFP = Frequent Flyer Program

3

Building On Our Strong Domestic Business

Powerful domestic franchise underpins Group’s success

Superior in-flight experience and

on-time performance

8.0 million members

Simple, high quality product

World class customer insights

Market leader in ancillary revenue

Largest wide-body fleet

Deep home market penetration

Low cost leader

Greater frequency, biggest network

Extensive award opportunities

Strong brand & customer perception

Strongest regional franchise

Faster earn...