L e ve r aging dual br ands Alan Joyc e , CE O JP Mor gan - PowerPoint PPT Presentation

L e ve r aging dual br ands Alan Joyc e , CE O JP Mor gan Aviation Cor por ate Ac c e ss Day Nove mbe r 2010

Dual br and str ate gy Aiming to be : � Wo rld’ s b e st pre mium a irline - Qa nta s � Wo rld’ s b e st lo w fa re s a irline - Je tsta r Unique dive r sific ation � Pre mium a nd lo w fa re s � I nte rna tio na l a nd do me stic � Busine ss a nd le isure � Sho rt a nd lo ng ha ul 2

Dual br and fle xibility � Gro wth a djusta b le b a se d o n re turns - impro ve d c o mpe titive po sitio n � Qa nta s a nd Je tsta r, inte rna tio na l a nd do me stic � F le e t – A330 a nd B787 tra nsfe ra b le b e twe e n b ra nds � Ope ra tio na l e ffic ie nc y � Je tsta r - true L CC a ppro a c h � Qa nta s - QF uture driving e ffic ie nc y � Qa nta s - Ma rke t le a ding o n-time pe rfo rma nc e (OT P) � E nha nc ing the Gro up’ s ma rke t po sitio n � Suc c e ssfully wo rking to g e the r o n 26 ro ute s � Ma inta ining do me stic ma rke t stre ng th a nd a yie ld pre mium 3

Qantas – Consiste ntly be tte r OT P � 19 o ut o f the la st 24 mo nths fo r de pa rture s � 21 o ut o f the la st 24 mo nths fo r a rriva ls � L o we st le ve l o f c a nc e lla tio ns 19 o ut o f the la st 24 mo nths � F Y10 – Our b e st do me stic OT P in 15 ye a rs, b e st inte rna tio na l OT P in 9 ye a rs Dome stic on time de parture s 91% 89% 87% 85% 83% 81% 79% 77% 75% 9 0 8 9 9 9 0 0 8 9 9 0 0 0 0 0 0 0 0 0 1 1 1 1 - - - - - - - - - - - - t r n t r n c b g c b g p p c u u c u u e e e e A A O J O J F A F A D D Qantas Virg in Blue 4

Qantas – Be tte r for busine ss � Mo st e xte nsive do me stic ne two rk a nd hig he st fre q ue nc y � Almo st do ub le the ne two rk re a c h o f c o mpe tito rs � Ove r 4,300 flig hts pe r we e k inc luding de dic a te d City f lye r o ffe ring � L a rg e st wide b o dy ne two rk with 10 x A330s � Wide -ra ng ing re g io na l ne two rk � Unde rpinne d b y Q400 e xpa nsio n � Cha rte r o pe ra tio ns g ro wth c o ntinue s � Additio na l flig hts to mining re g io ns � 900 de stina tio ns wo rldwide with 25 b ila te ra l c o de sha re a g re e me nts 5

Qantas – Wor ld c lass lounge s � Awa rd winning Austra lia n de sig n � Be st fo r b usine ss � Busine ss c e ntre s / me e ting ro o ms � Re fre sh – sho we rs a nd spa s � E xc lusive Cha irma n's c lub � I nvita tio n o nly, re stric te d to 7,000 me mb e rs � Sig na ture dish me nu 6

T e c hnology and innovation - Se tting a highe r standar d � Ne xt g e ne ra tio n c he c k in � F irst a irline to intro duc e wo rld-le a ding te c hno lo g y � Q Ba g T a g – a uto ma tic a lly links c usto me r lug g a g e to flig ht de ta ils � Se a mle ss tra nsfe r fa c ility la unc he d in Sydne y 7

L e ading loyalty pr ogr am � Ove r 7.4 millio n me mb e rs, ta rg e t o f 8 millio n b y 30 June � 40% g ro wth sinc e F Y08 � Me mb e rs c a n e a rn po ints with o ve r 490 c o a litio n pa rtne rs � Qa nta s Gro up a nd 27 a irline s � Ca rds a t a ll ma jo r Austra lia n b a nks � L a rg e st re ta ile r – Wo o lwo rths � Re wa rds � No n re plic a b le c la ssic a wa rds � Awa rd Sto re 1700+ pro duc ts � Any Se a t to 100+ de stina tio ns � 3.4 millio n se a ts re de e me d F Y10 � Re c o rd le ve ls o f me mb e r e ng a g e me nt 8

9 busine ss mode l volution of the Je tstar E

Je tstar is the le ading Asia Pac ific L CC � Stro ng c o mpe titive po sitio n a s lo w fa re s le a de r in Asia � 17 c o untrie s, 52 de stina tio ns, o ve r 350 flig hts pe r da y � Co ntinuo usly pro fita b le sinc e 2004 sta rt up Je tstar Gr oup � 6 th suc c e ssive ye a r o f do ub le dig it g ro wth Je tstar � Mo re tha n 7000 to ta l e mplo ye e s Austr alia Vie tnam Inte r national � Co mb ine d o pe ra ting fle e t o f 72 a irc ra ft 1 Ne w Singapor e Ze aland � Co ntinua l inve stme nt a nd inno va tio n The next wave of opportunity for Jetstar is Asia 1. Inc luding Jetstar Pac ific and Je tstar Asia air c r aft 10

Asia e xpe r ie nc ing r apid gr owth with low L CC pe ne tr ation Comme rc ial Je t Mar ke t Size & L ow Cost Car r ie r Shar e of T otal Gr owth by R e gion Capac ity by R e gion/ Countr y CAGR % to ta l se a t c a pa c ity pro vide d b y L CCs (09-29) 55 40,000 Austr alia 36,300 Afric a 3.0% 50 35,000 Middle E a st 4.8% 45 L a tin Ame ric a 4.6% 30,000 40 CI S 0.6% 35 UK 25,000 E uro pe Asia Pa c ific 5.6% 30 Unite d Sta te s 20,000 18,890 25 Glo b a l 15,000 20 E uro pe 2.8% 15 Asia Pa c ific 10,000 10 5,000 No rth Ame ric a 1.6% 5 0 0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2009 2029 Note: 2002-2004 Australian data interpolated Source: 2010 Boeing Market Outlook, PhocusWright Online Travel Overview , Euromonitor; CAPA, Annual reports 11

Je tstar we ll positione d for Asia Pac ific gr owth � L a rg e st lo w c o st c a rrie r in Asia Pa c ific b y re ve nue � L a rg e st c a rrie r b e twe e n Austra lia a nd Ja pa n � Je tsta r ha s a nno unc e d sig nific a nt e xpa nsio n � Sing a po re – Me lb o urne � Sing a po re – Auc kla nd � Sing a po re – Guilin (China ) � Sing a po re – T a ipe i – Osa ka � Sing a po re – T a ipe i – T o kyo � F uture g ro wth fo c use d o n: � I ntra Asia L o ng Ha ul a nd Sho rt Ha ul se rvic e s � Ne w Je tsta r a ffilia te s 12

13 Que stions?