Qantas Airways Limited

Fleet, Efficiency & Engineering

Gareth Evans, Chief Financial Officer Seattle, 6 October 2013

GroupFleetStrategy

Flexibility,Simplification,Efficiency
5keyprinciples
Rightaircraft,rightroute Fleet simplification Flexibility delivery,retirement,renewal Sustainablefleetinvestmentprofile Continualreductioninfuelandunitcost

Maximumfleetplanflexibility
Firmorders,options,purchaserights Ordersspanfamilyofaircrafttypes Strongrelationshipswithmanufacturers

Upto96narrowbody,13widebodyaircraft plannedfordeliveryinnext5years 37optionsand268purchaserightsthroughto Dec2025 27narrowbody,10widebodyand4 turbopropaircraftpotentialleaserenewalsin next3years Upto37aircraftretirementsinnext5years

andsuppliers

GroupFleetStrategy

DeliveriesandRetirements
AIRCRAFTDELIVERIES (INDICATIVETIMING) AircraftType A380800 B7878 A320Family1 B737800NG B717200 Q400 TotalDeliveries FY14 6 8 4 5 3 26 FY15FY16 5 15 5 25 FY17FY25 8 3 80 91
~20% ~15% ~10%

AIRCRAFTRETIREMENTS&LEASERETURNS (INDICATIVETIMING) AircraftType B747400 B767300 B737400 B737800 A320200 FY14 2 7 6 57 FY15FY16 2 13 06 623

REDUCTIONINFUELCONSUMPTIONPERASK2
~35%

A380vB747

A320neovA320 B787vB767 (nosharklets)

Q400vsimilar sizedjet

1. Includes Jetstar Asia, excludes Jetstar Pacific, Jetstar Japan and Jetstar Hong Kong. 2. On a per available seat kilometre basis. Source: Qantas internal assessment and manufacturer guidance.

GroupFleetStrategy

Maintainingayoung,fuelefficientfleet
Youngaveragefleetageof7.9years1 Lowestfleetagesinceprivatisation Forecastfleetagetodeclinefurther
15retirementsofolderfleettypeinFY14
15 14.7 13.4 10 7.5 7.9 9.1 9.7 10.1

COMPETITORFLEETAGEFY13(YEARS)2,3
16.8

5 4.9 0

6.4

6xB737400,7xB767300,2xB747400
26newaircraftdeliveriesinFY14

SingaporeAirlines

AirNewZealand

BritishAirways

Emirates

QantasGroup

Jetstar

CathayPacific

A320ordersupportscosteffectivefuture fleetgrowthatJetstarassociates
10 8 6 4 2 0

QANTASGROUPAVERAGEFLEETAGE3

Jetstar QantasGroup FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15

1. Average fleet age of the Groups scheduled passenger fleet based on manufacturing date. 2. Source: Airfleet.net. 3. Qantas Group fleet age includes Qantas and Jetstar scheduled passenger fleet. Jetstar fleet age includes Jetstar Australia Domestic and International, Jetstar New Zealand and Jetstar Asia scheduled passenger fleet.

AmericanAirlines

JapanAirlines

DeltaAirlines

GroupFleetStrategy
Thenextbigdecisions

Flexibilitykeytolongtermfleetstrategy Arrangementswithmanufacturersprovide maximumoptionalityforQantastomanage orderstodemand 41leaseexpiries1 overnext3years;ability toreplaceorextendwithexistingorders Futurefleetreplacementdecisions,ongoing assessmentofproducts

B7382 B737Max,A320/A321neo3 B747A380,A330,A350XWB,B787,B777X

B7874 OPTION ANDPURCHASERIGHTTIMING TIMING FY17 FY18 FY19 FY20 FY25 Total 20 30 OPTIONS 5 6 7 2 PURCHASE RIGHTS5

B717A319neo,B7377Max,Bombardier Cseries,EmbraerEjetfamily

1. Includes Network Aviation aircraft. 2. Eight options still remaining. 3. Currently have 190 options and purchase rights for A320neo or A321neo. 4. Qantas has conversion rights for all B787 family aircraft. 5. Subject to availability.

FleetSimplification
Benefitsoffleet simplification:

Drivingunitcostimprovements
20131 9FleetTypes
A380 A380 B747 B747 A333 A333 A332 A332 B767 QANTAS

2016 7FleetTypes

Operationalsynergies Commonalitycost savings Lowersparescost Networkand schedulingbenefits Customersatisfaction fromconsistent productoffering

B737400 B737800

B737800

A330 A320

B787 A320

JETSTAR

1. As at 30 June 2013.

FleetSimplification

QantasDomesticwidebodyfleetevolution

A332
(4configurations)

B767
(4configurations)

OperationalSynergiesand Commonality costsavings: Reducedtechcrew,cabin crew,engineeringandreserve crewrequirements.Catering equipmentandother equipmentdesignedforuse withB767snolongerrequired.

Rightaircraft,rightroute:With retirementofB767s,consistent fleettypeusedondomesticroutes. CurrentlyB767sflyEastWestand EastCoast.Simplificationresultsin dedicatedwidebodyfleetflying EastWest(A332s)andnarrow bodyfleet(B738s)flyingEastCoast.

(1configuration)

A332

20131

2016
Lowersparescost: B767shave 2enginetypesspecifictofleet, enablingalowerspares inventoryrequirement. Customersatisfactionwith consistentproduct: RetirementoftheB767fleet, andintroductionofnew domesticproduct,willresultin allQantasA330shaving consistentproductandinseat IFE2 offering.

1. As at 30 June 2013. 2. InFlight Entertainment.

FleetSimplification

AssistingQantasDomesticunitcostimprovement

ReduceQantasDomesticunitcostgaptocompetitor
Qantas Transformation Programs

FleetRenewal

RightAircraft, FleetSimplification& Reconfigurations RightRoute

IncreasedUtilisation

B763,B734fleetretirement QantasTransformationinitiatives
Engineering Operations Commercial Overhead

FUELCOSTIMPROVEMENTPERASK1
>15% >10%

B717fleetonrightroute(Canberra,Hobart) Increasenarrowbodyutilisation
Scopeforadditionaloffpeakandleisureservices
A332vB763 B738vB734

1. On a per available seat kilometre basis. Source: Qantas internal assessment and manufacturer guidance.

FleetSimplification

Evolutionoffleetconfigurations

2008

2013 3Configurations

FutureState 1Configuration

B747

7Configurations

SuperiorA380producton9xB747s: LatestIFE Refreshedseatsinallcabins FullylieflatBusinessclassskybeds

Retirementofaircraftwithlegacy productolderthan20years Continuedoperationofrefreshed 9xB747s

2013

2016 2Configurations

A330
6Configurations

AllJetstarA330stransferredtoQantasDomesticbymid2015 ReconfigurationofQantasDomesticandQantasInternationalaircraft: FullyflatbusinessclassseatA330300/200 NeweconomyseatsforinternationalA330300 RefreshedeconomyseatsfordomesticA330200 NewIFEwithQStreamingtechnology

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FleetEconomics

Improvedutilisation
Improvingassetutilisationtodriveunitcostbenefits
Reconfigurationprograms:drivingfuelsavingsonaperseatbasisandcapacity

increaseswithoutheavycapitalinvestment
B738enginerefreshprogram:19aircrafttoberefreshedbyAug2014,driving

approximately1.5%fuelburnsaving1
Jetstarsharklet program:7xA320swithsharklets delivering34%fuelburnsaving2

FY14Grouputilisationforecastat~9.9hours(FY13~9.4hours)3
Naturalgroundtimeinitiatives
Aircraft type B7444 A380 B717(single class) A320 Configurationchanges Seat FY11Current(seats) change 364 484 125 180 19% 8% 9% 2%

Increasingutilisationbothinternationally

anddomestically

307/353 450 115/117 177

1. Engine replacement program. Fuel burn efficiency based on Qantas internal assessment. 2. Source: Airbus guidelines. 3. Utilisation refers to Qantas jet operations. 4. Nine aircraft reconfigured as at 30 June 2013.

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FleetEconomics

Reconfigurationprograms
Worldclassproductofferingonmainfleettypes:

B747reconfigurationcompletedOct2012(9aircraft) B738tofullyreplaceB734byFeb2014
InseatIFEonallB738sdeliveredfromAug2009

A330reconfigurationcommencingend2014,completed byend2016(30aircraft)
LatestIFE,newbusinesssuiteswithfullylieflatbeds,

refreshed/neweconomyseats

B767cabinrefreshcompletedMay2013(15aircraft)
QstreamingiPad technology(fullytransferabletoother

aircraft),refreshedseatsandinteriors

B717twoclassintroductioninFY14
Firsttwoclassofferingonregionalnetwork,latestIFE

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FleetEconomics

QantasInternational
Findingmoreflyingtimefromexistinglonghaulfleet

Naturalgroundtime
LinemaintenanceconductedinLosAngeleswhenA380otherwiseidle 1extradayofflyingavailable;15%utilisationincrease Exploringfurtheropportunitieswithinnetwork

Improvedutilisation
PerthAucklandA330seasonalflying,aircraftotherwiseidleinPerthonweekends ReschedulingofJetConnect Tasmanflyingtoreleaseequivalentof~1aircraftfordomesticflying

Additionalcapacityoptions
UtiliseimprovedA380heavymaintenancescheduletoupgaugeB747flyingwithA380oradd

frequenciesoncoreroutes(e.g.BrisbaneLosAngeles)
Seasonalsupplementaryflying(e.g.from3to4weeklySydneySantiago)

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FleetSimplification&Engineering
Drivingefficiencygains

YoungerfleetrequireslessmaintenancespendperASK:
Improvedtechnologyresultsinreducedmaintenancerequirements(maintenanceondemand) Newaircraftrequirelessfrequentheavymaintenancechecksthanolderaircraft

Engineeringcostsavings
Lowerinventorylevelsperaircraft Lessspareenginesperaircraft Lesstotalsupportstaffperaircraft

Benefitsfromexitingolderfleettypes(B767s,B734s)
Expectedwidebodyengineeringcostbasereduction~$100millionFY16vs FY121 Furthercostsavingsthroughengineering,spares,flightoperations,crew

B747fleetnowinmaintenancehoneymoonFY13FY16
PeriodofheavymaintenanceinvestmentFY08FY12 2530%reductioninforecastB747engineeringcostscomparedtoFY12

1. Annual benefit from removal of B767 engineering program only.

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QantasEngineering1

Removingmaintenancecomplexity
QFFleetSeatingConfigurations A380 B747 A330 B767 B737 Fleet QFFleet EngineTypes A380 B747 A330 B767 B737 Fleet
1. Excludes Jetstar.

2008 7 4 4 2 17Configs 2008 RB211GT CF680C2(B5F) CF680E1 RB211HT CF680C2(B6) CFM567 CFM563 7Engine Types

2011 1 5 4 4 2 16Configs 2011 T900 RB211GT CF680C2(B5F) CF680E1 RB211HT CF680C2(B6) CFM567 CFM563 8Engine Types

2013 1 3 4 4 2 14 Configs 2013 T900 RB211GT CF680C2(B5F) CF680E1 RB211HT CF680C2(B6) CFM567 CFM563 8Engine Types

FutureState 1 1 2 Exit 1 5Configs FutureState T900 RB211GT CF680C2(B5F) CF680E1 Exit CFM567 5Engine Types
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QantasEngineering

Transforminglegacycostbase
Heavymaintenanceconsolidation Maintenanceondemand Reductioninengineeringfacilityexpenses
Olderfleetretirementandnetworkchanges(e.g.exitoflossmakingroutes)

ConsolidationofengineeringsupportservicesfromMelbourneintoSydney NewMaintenix ITsystemimprovingmaintenanceefficiency

QANTASENGINEERINGC/ASK
18.9%

PEERCOMPARISON:MAINTENANCESPENDC/ASK1
29%
Average

USAirways

Continental

MalaysiaA.

CathayP.

FY10

FY11

FY12

FY13

1. Calculated in AUD. Source: US DOT Form 41; Company Annual Reports.

SingaporeA.

Lufthansa

American

LCCAvg

JAL

United

AFKLM

AirNZ

FY12A

FY11A

FY13A

Iberia

Delta

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Disclaimer&ASICGuidance
ThisPresentationhasbeenpreparedbyQantasAirwaysLimited(ABN16009661901)(Qantas). Summaryinformation ThisPresentationcontainssummaryinformationaboutQantasanditssubsidiaries(QantasGroup)andtheiractivitiescurrentasat6October2013.TheinformationinthisPresentation doesnotpurporttobecomplete. It should bereadinconjunctionwithQantasGroupsotherperiodicandcontinuousdisclosureannouncementslodgedwiththeAustralianSecuritiesExchange,whichareavailableatwww.asx.com.au. Notfinancialproductadvice ThisPresentationisforinformationpurposesonlyandisnotfinancialproductorinvestmentadviceorarecommendation toacquireQantassharesandhasbeenpreparedwithouttakingintoaccounttheobjectives,financial situationorneedsofindividuals.Beforemakinganinvestmentdecisionprospectiveinvestorsshouldconsidertheappropriatenessoftheinformationhavingregardtotheirownobjectives,financialsituationandneedsandseek legalandtaxationadviceappropriatetotheirjurisdiction.QantasisnotlicensedtoprovidefinancialproductadviceinrespectofQantasshares.CoolingoffrightsdonotapplytotheacquisitionofQantasshares. Financialdata AlldollarvaluesareinAustraliandollars(A$)andfinancialdataispresentedwithinthefinancialyearended30June2013unlessotherwisestated. Futureperformance Forwardlookingstatements, opinionsandestimates providedinthisPresentationarebasedonassumptionsandcontingencieswhicharesubjecttochangewithoutnotice, asarestatements aboutmarketandindustrytrends, whicharebasedoninterpretations ofcurrentmarketconditions.Forwardlookingstatementsincludingprojections,guidanceonfutureearningsandestimatesareprovidedasageneralguideonlyandshouldnotberelieduponas anindicationorguaranteeoffutureperformance. AninvestmentinQantassharesissubjecttoinvestmentandotherknownandunknownrisks,someofwhicharebeyondthecontrol ofQantasGroup,includingpossibledelaysinrepaymentandlossofincomeandprincipal invested.Qantasdoesnotguaranteeanyparticular rateofreturnortheperformance ofQantasGroupnordoesitguaranteetherepaymentofcapitalfromQantasoranyparticulartaxtreatment. Personsshouldhaveregardto therisksoutlinedinthisPresentation. Norepresentationorwarranty,expressorimplied,ismadeastothefairness,accuracy, completenessorcorrectness oftheinformation,opinionsandconclusionscontainedinthisPresentation.Tothemaximumextentpermitted bylaw,noneofQantas,itsdirectors, employeesoragents,noranyotherpersonaccepts anyliability,including,withoutlimitation,anyliabilityarisingoutoffaultornegligence,foranylossarisingfromtheuseoftheinformation containedinthisPresentation.Inparticular, norepresentationorwarranty,expressorimpliedisgivenastotheaccuracy, completenessorcorrectness, likelihoodofachievementorreasonablenessofanyforecasts, prospectsor returnscontainedinthisPresentationnorisanyobligationassumedtoupdatesuchinformation.Suchforecasts, prospectsor returnsarebytheirnaturesubjecttosignificantuncertaintiesandcontingencies.Beforemakingan investmentdecision,youshouldconsider,withorwithouttheassistanceofafinancialadviser,whetheraninvestmentisappropriateinlightofyourparticularinvestmentneeds,objectivesandfinancialcircumstances. Pastperformance Pastperformance informationgiveninthisPresentationisgivenforillustrativepurposesonlyandshouldnotbereliedupon as (andisnot)anindicationoffutureperformance. Notanoffer ThisPresentationisnot,andshouldnotbeconsidered,anofferoraninvitationtoacquireQantassharesoranyotherfinancialproducts.

ASICGUIDANCE InDecember2011ASICissuedRegulatoryGuide230.TocomplywiththisGuide,Qantasisrequiredtomakeaclear statementabout whetherinformationdisclosedindocumentsotherthanthefinancialreporthasbeenauditedor reviewedinaccordance withAustralianAuditingStandards.Inlinewithpreviouspresentation,thispresentationisunaudited.Notwithstandingthis,thepresentationcontainsdisclosureswhichareextracted orderivedfromthe ConsolidatedFinancialReportfortheyearended30June2013whichisauditedbytheGroupsIndependentAuditor.

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