Qantas blinks and cuts jet orders
June 15, 2011 – 10:41 am, by Ben Sandilands
Qantas has made significant cuts to its capital expenditure liabilities and reduced its fleet acquisitions by 12 single aisle jets and its growth estimates because of signs of contraction in the Australian economy.
This is part of its statement to the ASX:
The Qantas group has not yet estimated the impact of the volcanic ash crisis, not just because it is a continuing problem, but it is understood, because of the probability that many of the fares booked on cancelled flights will be used rather than refunded in coming weeks.
A major problem for Qantas, and other airlines, is that a substantial cost factor in the ash related flight cancellations is fixed costs that continue even though the jets aren’t flying. The airline is still paying wages, and finance or leasing costs in some cases.
Anybody want to lay odds that Qantas domestic will wear the brunt of all this with cancellations of long overdue 737-800's?
And that Jetstar A320 and Jetconnect 737-800 deliveries meantime will continue un-interupted?
