Airbus wins the QF LCC order

[DJ737]

Airbus wins Qantas order

In todays West Australian



AIRBUS has won the order to supply Qantas' new low-cost airline with its first aircraft.

Although a formal announcement is not expected until next week, Qantas management has recommended that the board approve the selection of the 166-210 seat A320/21 range of aircraft.

Up to 23 aircraft will be ordered, with first deliveries due by the middle of next year.

Qantas now operates a huge fleet of Boeing 737s-the direct competitor to the A320- and there are more 737s on order and under option.

Air New Zealand already operates the A320 and is expected to win the contract for major overhauls on the new aircraft.

Qantas chief executive Geoff Dixon wants the new airline to set a benchmark for low cost airlines.

Former Impulse Airlines pilots now flying under the QantasLink banner operating Boeing 717s have volunteered to fly the A320 for the same pay scale. :p

Have a nice day.

Cheers
DJ737
The Roo Rooter :E :ok:

[Suffering Sucataash]

Great news for you at least DJ,

Virgin should get a great boost if this is the case.

I wish Dixon would tell us where he wants the 73's parked though.

Thanks very much to the ex AIPA presidents for there representation, they displayed all those qualities of a Qantas pilots that many on this forum have expressed in the past, self serving arrogance being the first which comes to mind.


:mad: :mad: :mad: :mad: :mad:

[ur2]

An excellent choice. Enabling a total ground zero approach.
Makes perfect sense. :O

[Wirraway]

Dow Jones

Qantas Selects Airbus For No-Frills Ops- Source

By Lilly Vitorovich
Of DOW JONES NEWSWIRES

SYDNEY (Dow Jones)--Qantas Airways Ltd. has selected Airbus planes for its local discount airline in preference to Boeing Co. the sole provider to arch rival Virgin Blue, a person with knowledge of the deal said Monday.

Qantas management is expected to recommend to the board of the national carrier when it meets this week that Airbus A320 planes be purchased for the yet-to-be named offshoot, the person told Dow Jones Newswires.

Boeing was told late last week that it was unsuccessful in securing the contract for the budget airline ahead of its launch next May.

The deal could be worth up to US$450 million, one analyst said, but Qantas is likely to win a steep discount along with the provision of training services and spare parts that might cut the final price tag to less than US$300 million. Boeing and Airbus are actively chasing the growing Asian aviation market, with the U.S. company this month snaring a US$1.7 billion deal with China Aviation Supply Co.

Virgin Blue has steadily built its market share to around 30% since takeoff in August 2000, with its success a key factor in the decision by Qantas to begin its own no-frills domestic operation.

Part-owned by U.K. entrepreneur Richard Branson, Virgin Blue this week began an initial public share offer that will raise A$500 million-plus ahead of its Dec. 8 listing on the Australian Stock Exchange. The airline has a cost base 35% lower than Qantas due in part to its streamlined Boeing 737-800 fleet and union concessions.

While Qantas hasn't said how many planes it will buy for the offshoot, it did reveal last month at its annual meeting that by mid-2005 the operation will have a fleet of 23 aircraft.

Qantas is expected to buy nine planes, according to investment banks Goldman Sachs JBWere and UBS. The cost associated with the planes was included in the company's s capital expenditure outlay of A$6 billion over three years revealed in August alongside its annual results.

The remaining 14 aircraft are expected to be transferred from Qantas' existing fleet, according to a Goldman Sachs research note.

An Airbus spokesman said the average retail price of an Airbus A320 is between US$45 million to US$50 million, valuing the nine Qantas are valued at between US$405 million and US$450 million. The spokesman had no comment on the talks with Qantas.

The Australian airline is likely to negotiate a discount of about 30% off the retail price and also win maintenance concessions, said Ian Thomas, a senior consultant with the Center For Asia Pacific Aviation.

"I think you can happily discount it by about 30% and than you're talking also about some support deals, they'll provide spare parts, training support, and in some cases finance," Thomas said.

"So the sort of deals that manufacturers are doing are packages, and really it's a case of which one comes up with the most enticing package," he said.

A Qantas spokeswoman declined to comment on the plane contract.

Qantas chief executive Geoff Dixon told reporters last Thursday that a fleet recommendation will be put to the board early this week.

The branding and naming of the carrier, which will be run by former Aer Lingus and Ansett Australia executive Alan Joyce, is also expected to be finalized this week.

Joyce's team will include a number of former senior executives from Europe's low cost carrier Ryanair.

-By Lilly Vitorovich; Dow Jones Newswires;
61-2-8235-2963; [email protected]

==========================================

[Johhny Utah]

DJ737 - I would suggest that the :p on the end of your highlighting should probably be a :uhoh:

I'd suggest that any convergence' you have in future EBA's won't be with the top end of town, but rather with the 'lowest of the low' priced competition - the Impulse Pilots Group (if they do in fact win the LCC contract...)

Hardly cause for hilarity...:mad:

[QFandlovinIT]

WOW watch all the ex AN SCABS come a runnin'!!!!

[ur2]

QFandlovinIT,
More like ****** and lovin it!
What do they do to you over there ?, remove your scruples and replace them with mindless arrogance? Boy are you troubled.

[Raider1]

The only thing I find strange about all this is the fact that the administrators of Ansett and the various lessors had more then 20 ex AN a320's going for a song. The perfect start up for a discount airline. The lowest pax cost per km and a cheap purchase/lease price!!!
Oh well guess they have all left our shores now. But some are still sunning themselves in the desert :D

[chockchucker]

Raider,

An still has two A320's fresh from D check in storage at tulla. Rumor goes that the Administrators of AN have been Approached by QF to use these Aircraft for engineering (possibly tech crew as well) familiarisation and perhaps P.C.T. Training. Don't think they've negotiated to operate (Fly) them though.

Interesting times for all the ex Ansett "A320 only" engineers who haven't gotten a start at QF or DJ because they didn't happen to have the right licence.

Hope some of you get a break soon.

Chockchucker.

[rescue 1]

a person with knowledge of the deal

The only person with knowledge would be Alan Joyce and Geoff Dixon.

Lets not get too excited...just yet anyway.

[cognac]

To QFandlovinIT
Build a bridge and get over it!

[Truth Seekers Int'nl]

never was a strike in '89, so can be no scabs. only returnees, preventing yank opportunists licking abeles/hawke ass, getting own jobs back.