Qantas Group Executive Changes

Sydney, 16 February 2006

The Qantas Group today announced a new executive structure to lead the company through the next stage of its business transformation program.

The Chief Executive Officer of Qantas, Mr Geoff Dixon, said the changes, effective 20 February, centred on a significantly smaller top team with broader responsibilities, in keeping with the efficiency drive throughout the Group.

"The Qantas Group has an excellent portfolio of businesses, with strong positions in our major markets.

"However, each of our businesses operates in an environment of increasing competition.

"Under the new structure, the management of each of the businesses will have the freedom to pursue independent business development initiatives, with accountability for the results.

"At the same time, collaboration between the segments will be a key focus, reflecting the importance of the links between the various businesses in driving value for the Group.

"We are fortunate to have an executive leadership team of the calibre and commitment that we do," he said.

Mr Dixon said seven Executive General Managers would report to him:

* John Borghetti, Executive General Manager Qantas Airlines
* Kevin Brown, Executive General Manager People
* David Cox, Executive General Manager Engineering
* Grant Fenn, Executive General Manager Associated Businesses
* Peter Gregg, Chief Financial Officer and Executive General Manager Strategy
* Alan Joyce, Chief Executive Officer Jetstar
* Rob Kella, Chief Risk Officer

He said the structure had been organised around three key groupings - flying businesses, non-flying businesses, and corporate support.

Flying Businesses

* The flying businesses will be grouped under two major brands - Qantas and Jetstar. John Borghetti will lead the full service airlines, including Qantas (domestic and international), QantasLink and Australian Airlines, and Alan Joyce will be responsible for Jetstar operations including the Australian business, the new international airline and Jetstar Asia.

The senior management of both flying businesses will work closely to ensure the profitable growth of the Group's flying portfolio to achieve the best result for the company.

Non-flying Businesses

* Current Executive General Manager Airports and Catering, Grant Fenn, will become Executive General Manager Associated Businesses, taking on responsibility for Freight and Qantas Holidays in addition to Airports and Catering, with the focus on growing and diversifying the Qantas Group's earnings stream as well as driving efficiencies in each business.

* David Cox will continue to lead Qantas Engineering, and will be responsible for the Engineering transformation program as well as taking on responsibility for Qantas Defence Services.

Corporate Support

* Chief Financial Officer and Executive General Manager Strategy Peter Gregg will oversee:
- Finance, led by Deputy Chief Financial Officer Colin Storrie, including financial policy, Treasury, Tax and the Sustainable Future Program;
- a new Qantas Shared Services (QSS) area, led by the current Head of the Sustainable Future Program Curtis Davies, which will be responsible for Property, Procurement and the Financial Services areas of Revenue Accounting, Accounting Control, Accounts Payable, Credit Management and Group Payroll;
- a separated Information Technology division, IT Services, to be headed by current Head of IT Business Services, John Willett, who replaces Fiona Balfour as Chief Information Officer; and
- a streamlined Corporate Centre including Strategy, Economics, Investor Relations, Qantas Consulting and Strategic Procurement divisions, which will provide business segments with advice and support on policy, strategy and stakeholder relations.

* Kevin Brown, as Executive General Manager People, continues to have responsibility for people strategy including industrial relations, remuneration, workforce management initiatives and the implementation of key employee programs aimed at creating a competitive and motivated workforce.

* Current Head of Internal Audit, Rob Kella, will become Chief Risk Officer. A new Risk and Assurance Office, which will include Risk, Safety, Security, Occupational Health and Safety, Environment, Aviation Health Services and Internal Audit, will provide an integrated approach to risk management across the Group.

* The Communication, Public Company and Legal, and Government and International Relations areas continue to serve the Office of the Chief Executive Officer.

Mr Dixon said that every part of the business had aggressive targets for profit, return on assets, cost and growth as applicable.

"Qantas has undergone extensive change in recent years, including the reorganisation into segments in 2003 to give a clearer picture of the true financial performance and cost structure of each part of the company.

"This restructuring has increased accountability and yielded significant benefits, including $1.27 billion of cost and efficiency improvements to date, which have enabled us to invest and grow.

"These achievements have allowed Qantas to stand out as one of the few airline success stories, despite the significant challenges presented by higher fuel prices and aggressive competition.

"These latest organisational changes will now give us the best structure under which to meet the many challenges that lie ahead," Mr Dixon said.

Issued by Qantas Corporate Communication (Q3392)