Qantas Announces Details of Reorganisation

SYDNEY, 17 October 2003

Qantas today provided details of the corporate reorganisation it announced two months ago.

The Chief Executive Officer and Managing Director of Qantas, Geoff Dixon, said the reorganisation would enable Qantas to better meet the aviation industry's considerable challenges.

"It will also provide improved performance for customers, shareholders and employees," he said.

Mr Dixon said the reorganisation involved the establishment of ten businesses:

* Four flying businesses:

- Qantas Airlines (the main international and domestic operations)- QantasLink (the regional airline operations) - Australian Airlines (the international leisure carrier)- a domestic low cost carrier

* Two flying services businesses:

- Engineering Technical Operations and Maintenance Services- Airports and Catering

Four associated businesses:

- Freight- Qantas Holidays- Qantas Defence Services- Qantas Consulting

The businesses will be supported by a Corporate Centre that will focus on corporate governance, investment decisions, performance standards and group strategies.

A shared services organisation, Qantas Business Services, will be established to provide support services to businesses within the company.

"The reorganisation will deliver a range of major benefits, including increased accountability, greater speed and quality of decision making and improved return on assets," Mr Dixon said.

"An increase in autonomy for each business will be coupled with a strong focus on performance targets to ensure each business delivers its current commitments to optimise the success of the Qantas Group.

"The new structure will also increase the growth opportunities of non-core businesses such as Freight and Qantas Holidays."

Each business will have its own profit and loss statement and balance sheet and be fully accountable for its performance and contribution to the Qantas Group.

Mr Dixon said the structural change would be complemented by an operating style that focused on accountability, collaboration and leadership.

He said a new Executive structure had been designed with the objective of ensuring Qantas continued to be managed in a safe, experienced manner while developing leaders at all levels.

The new Executive includes three new members - David Cox*, Alan Joyce* and Andrea Staines* - and the entire team is:

Issued by Qantas Corporate Communication (2975)