Flight Centre Limited : Shareholder Questions
10/27/2011| 09:10pm US/Eastern
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FLIGHT Centre Limited (FLT) received a handful of questions
from shareholders ahead of the
company's Annual General Meeting in Brisbane on October 27,
2011.
Broadly, the questions related to:
Promoting the benefits of ownership to FLT's people
Shareholder discount programs
The environment
The impact of increasing fuel prices and possible fuel
shortages in the future; and
Directors' remuneration, specifically the reason for a
non-binding vote on the Remuneration
Report
A brief overview of FLT's position in each of these areas has
been included below. Ownership
FLT strongly believes in the value of its people having
genuine ownership of the businesses they
work in. This belief is articulated in the company's
philosophies.
Ownership opportunities are available through the company's
Employee Share Plan, which was expanded during 2010/11, and
various other programs, including the Business Ownership
Scheme (BOS). The BOS is outlined in detail in the annual
report.
Shareholder discounts
Because of FLT's relatively low margins and its commitment to
its lowest airfares guarantee and
other customer promises, the company has not been in a
position to offer further discounts. Its focus has been on
creating value for shareholders in other ways.
Environment
FLT is committed to enhancing its environmental record and
has adopted a series of policies and initiatives in Australia
and overseas.
These are included in a broader CSR position statement, which
is now available on the company's
website.
Fuel prices
Increasing fuel prices will inevitably have a flow-on effect
to airfare prices.
Airfare prices, however, remain extremely affordable by
historic standards and are unlikely to increase significantly
in the short-term future in our view.
Airlines are also proactively adopting strategies to reduce
fuel consumption and, ultimately, the impact of future price
rises on their business and customers overall.
D irecto rs' Rem uneratio n
Directors' fees have been set for 2011/12 at the same levels
as 2010/11.
The non-binding vote, relating to the Remuneration Report,
that will take place at the company's
Annual General Meeting is a statutory requirement for
publicly listed Australian companies.
This vote provides shareholders with the opportunity to voice
any concerns about a company's
remuneration policies and practices.
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