Senator XENOPHON: That is all I needed to know from you. Mr Joyce, can you please tell me what happened in that four-month period to cause such a massive turnaround in the statements that you made.
Mr Joyce : Mr Evans is going to answer that question.
Senator XENOPHON: No, I would like you to answer it, please.
Mr Joyce : I am happy for Mr Evans to answer it.
Senator XENOPHON: I would like you to answer it.
Mr Joyce : He has the facts.
Mr Evans : The situation is that the two statements are completely consistent with each other. If you go back to that time, the business was recovering from the GFC. This was in February 2011. The GFC hit us in financial year 2009. We began recovering from that in financial year 2010 and recovered further in financial year 2011.
The comment that was made on 17 February was around the recovery that the business was seeing. Our yields had improved in that year, but that was a recovery from the GFC, when we saw our yields decline by approximately 25 per cent across the business as a whole. We also said in that 17 February statement, if you read on: While demand on key international routes continues to improve, the international environment remains challenging. We remain committed to improving the performance of Qantas' international business.
So even on 17 February we called out that there were challenges in the international business. Subsequently, on 22 June, we clarified for the first time—because prior to that we had talked about Qantas in totality—the performance of the international business separately, and subsequent to that we have clarified it more and it is now a separate segment in our financial statements. But the fact that the Qantas business as a whole in that first half of the financial year 2011 made $165 million, which was part of the statement on 17 February, in no way indicated that the international business was making profits.
Senator XENOPHON: Sure, but the share price, as I understand it, fell by about 27 per cent from 17 February to, I think, 23 June. There was a significant decline in the share price in that period—was there not?
Mr Evans : I do not recall the exact share price across that period.
Senator XENOPHON: But there was a drop.
Mr Evans : This is a tough environment and there was a wide range of reasons that the share prices moved.
Senator XENOPHON: That was the first time you advised the market about Qantas international on 22 June 2011?
Mr Evans : That is correct.
CHAIR: I am going to allow you latitude because it is your time, to some extent, but we are here looking at the bill and I think you can only draw a very distant relationship with what you are inquiring about.
Senator XENOPHON: I do not want to burn up time arguing with you, Chair, but the fact is these are relevant matters in terms of considering the bill.
CHAIR: I just draw your attention to the purpose of why we are here, but it is your time.
Senator XENOPHON: And I say that it is relevant to that purpose. Thank you, Chair. From 17 February 2011 to just prior to the announcement on 22 June 2011, did any Qantas group director or executive meet or brief any institutional investors?
Mr Evans : I cannot recall what briefings took place.