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JONN BEVER1DGE
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Dixon ahead of schedule
YOU have to getup early to beat the boy from Wagga Wagga.
Just last week Qantas chief executive Geoff Dixon announced
the great coup of buying an extra 99 planes just before the airline's
annual meeting.
Coming on top of an already impressive stack of orders and
options to buy a further 89, the extra spending of at least $6 billion served
a number of purposes at the meeting It blunted a union attack on
Qantas. And how could any union complain about more planes and
more jobs? And it was a terrific distraction from any simmering
shareholder resentment about the Macquarie-led buyout of Qantas
which foundered in May.
It was only later that plans to hire more cabin attendants offshore
leaked out. And there has been no word from Airbus or Boeing
confirming the giant orders.
I believe that's because the orders are yet to be confirmed with cold,
hard cash inthe form of deposits. Once the cash is handed over, the
manufacturers will trumpet the sale. So while the Qantas board and the
manufacturers have shaken hands on deals, they have not progressed
far beyond that. Which is why the delivery timetable Dixon released was fairly
light on detail. The first plane to arrive is an A321 in February next year.
The remaining firm orders would be delivered over six years and the
options delivered through to 2017. What the big orders did indicate -
coming on top of orders for the longhaul giant Airbus A380 Superjumbo
and the high-tech Boeing 787 Dreamliner- is that Qantas will
defend its 65 per cent grasp on the domestic market with an iron fist.
Having a flexible supply of the efficient narrow-bodied jets will
allow Jetstar to compete very aggressively with newcomer Tiger
and the established Virgin Blue. So Dixon is trying to grab the Tiger
by the tail and fling it back to Singapore where he thinks it belongs
Copyright Agency Limited (CAL) licensed copy
Herald Sun
Tuesday 20/11/2007
Page: 35
Section: Business News
Region: Melbourne Circulation: 535,000
Type: Capital City Daily
Size: 200.64 sq.cms.
Published: MTWTFS