News: QAN Qantas Says There Has Been Substantial Loss Of Trust In National Carrier

Nov 3 (Reuters) - Qantas Airways Ltd (QAN) :

• THERE HAS BEEN A SUBSTANTIAL LOSS OF TRUST IN NATIONAL CARRIER
• ACKNOWLEDGE IMPACT OF ACCC’S ALLEGATIONS AND HIGH COURT DECISION ON THE GROUND HANDLING MATTER, WHICH LANDED WITHIN TWO WEEKS OF EACH OTHER
• BOARD HAS COMMENCED A PROCESS OF INDEPENDENTLY REVIEWING KEY GOVERNANCE MATTERS OVER PAST 12 MONTHS
• NOW WORKING THROUGH A PROCESS WITH FEDERAL COURT AND TRANSPORT WORKERS' UNION TO COMPENSATE 1,700 EMPLOYEES WHO WERE RETRENCHED
• WILL SHARE OUTCOMES INDEPENDENT REVIEW BY MIDDLE OF NEXT YEAR
• CONTINUE TO RETURN FUNDS TO SHAREHOLDERS WITH OUR BUYBACK OVER 40 PER CENT COMPLETE
• BALANCE SHEET IS IN A STRONG POSITION AND WE HAVE APPROXIMATELY $A10 BILLION IN LIQUIDITY SOURCES
• INVESTING IN PEOPLE - WITH MORE TRAINING, MORE JOBS AND MORE PROMOTIONS
• BOARD MADE A NUMBER OF DECISIONS ON EXECUTIVE PAY TO DRIVE ACCOUNTABILITY FOR CUSTOMER AND REPUTATIONAL ISSUES THAT HAVE ARISEN
• CUSTOMER METRICS ACCOUNT FOR 20 PER CENT OF OUR ANNUAL INCENTIVE PROGRAM - KNOWN AS SHORT-TERM INCENTIVE PROGRAM OR STIP
• FOR FY23, ON-TIME PERFORMANCE WAS ONLY CUSTOMER METRIC THAT WAS ACHIEVED
• BOARD EXERCISED ITS DISCRETION TO ZERO OUT CUSTOMER COMPONENT OF SCORECARD FOR EXECUTIVE MANAGEMENT
• THERE WILL BE OVERWHELMING VOTE AGAINST REMUNERATION REPORT, WHICH IS ALMOST COMPLETE REVERSAL OF 90-PLUS PER CENT SUPPORT IN RECENT YEARS