2008/09 was a year of change and challenge for the Qantas Group.
Restoring our Reputation
A priority for the new management team, led by Chief Executive Officer Alan Joyce, was to restore Qantas’ reputation for safety and reliability, which had been damaged by an industrial dispute and subsequent maintenance backlog; and two inflight incidents. By January 2009, Qantas had regained its industry leadership in domestic on-time performance. In March 2009, on the basis of its preliminary investigations, the Australian Transport Safety Bureau found the inflight incidents were related to manufacturing faults beyond Qantas’ control. And in June 2009, monthly customer satisfaction reached its highest level since 2003.
Confronting the Crisis
The impact of the global financial crisis on airlines has been severe and the downturn may be prolonged. The Qantas Group reacted faster than almost any other airline, announcing decisive measures from November 2008 and throughout the following months to ensure the Qantas Group remains strong through this challenging period. For the Group, these trading conditions also represent an opportunity to transform and emerge stronger and more competitive.
Operating Sustainably
Sustainability is about responsibly creating long term shareholder value by embracing opportunities and managing the risks deriving from economic, environmental and social developments. The safety and security of employees and customers will always be the Qantas Group’s paramount priority. The Group is also investing in its diverse and talented workforce; energetically responding to climate change and seeking to reduce its environmental footprint; and actively and creatively engaging with the community.
Planning for the Future
The new management team has staked out clearly defined goals for the Qantas Group:
Short term (up to 12 months) preserving revenues and reducing costs; maintaining balance sheet strength; and preparing to emerge stronger from the economic downturn.
Medium term (up to three years) returning profitability to pre-crisis levels and generating strong cash flow to enable investment in fleet renewal and growth.
Longer term (beyond three years) generating sustainable returns through the economic cycle.
