Shaw stockbroking
Qantas go with Boeing
14/12/05 By: Stephen Blaxhall
Qantas Airways Limited (QAN) today announced that as part of its fleet renewal program review the group had decided to acquire 115 Boeing 787 aircraft. Under the fleet plan, the Qantas Group will acquire 65 Boeing 787s for Qantas mainline and Jetstar for delivery from 2008 and rights for an additional 50 B787s for growth.
The decision follows the airline’s request for proposal to Airbus and Boeing, which were announced in August 2005, for the provision of twin-engine wide-body aircraft.
The group advised that it intends to intendeds to fund the purchase of the new aircraft from operating cash flow.
“This fleet plan will give us a modern fleet offering maximum flexibility, lower seat mile costs and greater fuel efficiency,” noted Ms Margaret Jackson, Chairman of Qantas.
Ms Jackson added that the new acquisitions would allow for expected growth on international routes with the addition of new destinations as well as replacing the existing Qantas Group’s fleet of wide-body Boeing 767-300s.
The Chief Executive Officer of Qantas, Mr Geoff Dixon, said that the Boeing 787 provided Qantas with the ability to fly further to more point-to-point destinations throughout the world at a cost equivalent to operating larger aircraft like the Boeing 747- 400.
“One of our clear priorities is for Jetstar to be ready for international operations by early 2007, with the fastest possible transition to new technology, more efficient aircraft,” he added.
Jetstar will start its international operations with an interim fleet of four A330-200 aircraft and then transition to a fleet of 10 new Boeing 787 aircraft, with delivery of Jetstar’s first B787 scheduled for August 2008, Mr Dixon advsied.
Qantas mainline operations will take delivery of the first B787 for Qantas mainline operations in July 2009, he added.
“The Boeing 787 is ideal for operating to Asia, as well the USA and Europe, and with 300 seats, will enable both Qantas and Jetstar to closely target markets without compromising efficiency,” commented Mr Dixon.
“Its new technology engines, cutting-edge airframe and increased seat count also offer a significant reduction in costs per ASK compared to the current Boeing 767,” he noted.
Mr Dixon said Qantas’ current order was a mix of B787-8 and later model B787-9 aircraft.
The B787-9 model will be ready for service in 2011 and will fly further than the B787-8 but with capacity for 50 additional passengers. The B787 goes into production in 2006, with its first flight planned for 2007 and certification, delivery and entry into service in 2008.
At 1430 AEDT Qantas were up 17c at $3.92
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AAP
Qantas chooses Boeing for fleet program December 14, 2005 - 2:44PM
Qantas Airways Ltd says it will acquire 115 Boeing 787 aircraft as part of its fleet renewal program.
Qantas will take delivery of acquire of the first 65 aircraft from 2008 at a list price of $13 billion.
"Obviously with the 115 aircraft it gets up to about $23 to $24 billion," chief executive Geoff Dixon said.
The decision follows Qantas' request to Airbus and Boeing in August for twin-engine wide-body aircraft.
Mr Dixon said the tender had been very competitive, with excellent options proposed by both Boeing and Airbus.
"The Boeing 787 provides breakthrough technology, enabling us to fly further to more point-to-point destinations throughout the world at a cost equivalent to operating larger aircraft like the Boeing 747-400," he said.
"One of our clear priorities is for Jetstar to be ready for international operations by early 2007, with the fastest possible transition to new technology, more efficient aircraft."
Mr Dixon said Jetstar would commence operations with an interim fleet of four A330-200 aircraft before moving to a fleet of 10 new Boeing 787 aircraft, with delivery of Jetstar's first B787 scheduled for August 2008.
Qantas chairman Margaret Jackson said Qantas intended to fund the purchase of the new aircraft from operating cash flow.
"These new aircraft are vital for our continued growth in the face of increasing competition in the years ahead," Ms Jackson said.
"They will cater for international capacity growth and new routes, as well as replacing the Qantas Group's fleet of wide-body Boeing 767-300s."
Qantas said it had been unable to find an aircraft that could operate non-stop flights economically between Australia and London and Australia and New York from either Airbus or Boeing.
The firm had sought tenders from the two manufacturers for ultra-long range variants of the Airbus A340 and Boeing 777.
"Neither the B777 nor the A340 provide an economical solution to our desire to have some of our services overfly mid-point hubs," Mr Dixon said.
"As well, our commercial people did not feel the savings in elapsed time between the non-stop and one-stop journey was great enough to appeal to a wide enough passenger base."
However, Mr Dixon said it would continue to talk to both manufacturers about long-range aircraft options.
Qantas current order is for a mix of B787-8 and later model B787-9 aircraft, with the 787 set to reduce costs through its new technology.
"When the B787-9 model is ready for service in 2011, it will represent an even greater engineering breakthrough, flying further than the B787-8 but with capacity for 50 additional passengers," Mr Dixon said.
Mr Dixon said the decision would provide substantial economic benefits to Australia, including a $250 million injection into the local economy.
"Boeing has also told us that the order could produce total flow-through economic benefits to Australia in the order of $2 billion," he said.
"Boeing also expects other airlines to follow Qantas lead in relation to orders for the B787. This will provide an additional contribution to Australian jobs and export dollars."
The president of Boeing Australia, Andrew Peacock, said work on the B787 will produce projected exports of around $4 billion based on total projected sales through 2030.
© 2005 AAP
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Last edited by Wirraway; 14th Dec 2005 at 03:08.