Friday, August 24, 2012

Qantas cancels order for 35 Boeing 787-9 aircraft

Citing lower international growth requirements in an “uncertain global context,” Qantas (QF) has canceled firm commitments for 35 Boeing 787-9s and posted its first full-year loss since 1995.

QF will retain 50 787-9 options and purchase rights, available for delivery from 2016. The Australian carrier said there were no changes to its order for 15 787-8s, the first of which is scheduled for delivery in the second half of 2013.

The 787-9 cancellations will reduce capital expenditure by $8.5 billion.
QF posted a net loss of A$244 million ($255 million) for the financial year ended June 30, compared with a net profit of A$249 million for the previous year. QF International lost A$450 million, while QF Domestic and low-cost carrier subsidiary Jetstar Domestic delivered a combined profit of more than $600 million.

Joyce attributed the losses to a combination of a record fuel costs, up $645 million—an 18% hike—to $4.3 billion; $194 million incurred because of a prolonged industrial dispute last year; and costs of $376 million associated with a transformation plan aimed at turning around the company’s international business.

But Joyce added that the company was on track to make its international business profitable by 2014 as envisioned in a five-year transformation plan that started in August 2011 and which aims to cut costs by A$300 million a year.
 
“Our domestic position is pre-eminent and our domestic earnings outperformed the previous year. We have the two most profitable airlines in Australia,” Joyce said.

"We have 12 A380s in service across our long-haul network and the reconfiguration of nine 747s will be complete by late 2012,” CEO Alan Joyce said. “Boeing 737-800s will continue to enter the Qantas Domestic fleet as part of the Group’s existing fleet plan, while Airbus A330s will transfer from Jetstar as 787s are delivered. And Jetstar’s domestic and pan-Asian fleet requirements will be met over the long-term by our existing A320 order book and the arrival of 787-8s.”

(Christine Boynton - ATWOnline News)

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