Qantas well-positioned, meeting told

Qantas Group says the global economic outlook remains uncertain but it is seeing some encouraging signs and has seen no further deterioration in its business.

Chairman Leigh Clifford told the national carrier's shareholders at its annual general meeting Qantas was well-positioned to benefit when trading conditions improved.

"The global economic outlook remains uncertain," he told the meeting in Perth yesterday.

"We are seeing some encouraging signs and certainly no further deterioration.

"The Qantas Group is well positioned to withstand this period of downturn with the strengths of its two flying brands, strong management, and dedicated people.

"And the group will be ready to emerge strongly, and seize the opportunities when conditions improve."

Qantas booked a A$117 million ($144 million) net profit for 2008-09, down from A$969 million in the prior year.

It plans to cut costs by A$1.5 billion over the next three years, starting with a target of A$500 million this financial year. Key components of the cost-cutting plan include reconfiguring aircraft, including the superjumbo A380, technology advancements and fuel conservation.

Clifford also defended the airline's maintenance practices, saying that over 80 per cent of all Qantas' aircraft heavy maintenance is carried out in Australia.

Shareholders were expected to question the Qantas board about its remuneration policies.

Former chief executive Geoff Dixon received A$10.7 million in his last year at the national carrier, despite only serving as CEO for five months, followed by four months of consultancy work.

In the same period, Qantas culled 1840 full-time equivalent management and operational staff positions, and did not pay its shareholders a final dividend.

- AAP