STATEMENT FROM QANTAS 5 March 2014 Qantas has argued for the removal of the Qantas Sale Act

constraints for more than a decade. We believe the Act is outdated and puts Qantas at a unique disadvantage over its competition. Both sides of politics have fully accepted that the Australian aviation playing field is distorted. After discussions with Qantas, the Government announced that it had deliberated carefully on various options, and that its preferred course of action is to ask the Parliament to repeal key provisions of the Qantas Sale Act. If the legislation does not pass, then the domestic distortion would remain. Qantas will now focus on what we can control, and thats operating a great Australian business. We will continue to work through the processes announced last week to take $2 billion in costs out of our business. We have said that the price on carbon is a cost to our business that we have not been able to recover through fare increases, because of the intensely competitive market we operate in. Domestically, it cost us $106 million in FY13 and $59 million in HY14. It is among the significant challenges we face, including an uneven playing field, capacity increases in the international market and record high fuel prices. Our aim is always this: to preserve the future of Australias Qantas. Now more than ever we must look after our customers, stay focused, and maintain the highest standards in all that we do.