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Qantas aircraft order reduction

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Qantas aircraft order reduction

Old 15th Jun 2011, 03:04
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Qantas aircraft order reduction

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?
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Old 15th Jun 2011, 03:22
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It's almost a given
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Old 15th Jun 2011, 03:31
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Its odd they will not state 738 or A320
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Old 15th Jun 2011, 03:39
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QF is supposed have 1 738/mth delivered until the end of the year. What is the delivery schedule of JQ A320's? If you can find out that info, it would be pretty obvious I would think.
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Old 15th Jun 2011, 03:58
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Sounds to me like someone is having a tantwum.

If you can't play wif my twain set how I say, den no one gets ter play wit it.

Ter be sure ter be sure
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Old 15th Jun 2011, 04:31
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According to Airbus, JQ have one A320 scheduled for delivery in November.
3k on the other hand??
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Old 15th Jun 2011, 05:34
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Could be 10 fokkers for Network and two 717's for Cobham? why because they are buying Alliance!!!!!!!!!!
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Old 15th Jun 2011, 05:38
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I believe QF had 737-800's coming until at least the end of next year.


Now, surely a smarter long term thinking CEO would have said: No, lets not cancel 12 new aircraft that will have lower maintenance costs. Why not keep those aircraft coming and sell/return to lease company the first 12 737-800's that came into the fleet nine or ten years ago that are all just entering QC8 or D-check vintage.


But alas, thinking like that requires foresight and the long term interests of the airline in mind. Not the immediate bonus driven short term interests of the board and CEO.
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Old 15th Jun 2011, 05:58
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But alas, thinking like that requires
KNOWLEDGE OF THE BUSINESS YOU RUN.
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Old 15th Jun 2011, 07:22
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Er, Chockchucker, like to get off the hanger floor? Exchange a wet hanger for a nice cushy office? Well, do we have the job for you! (I am assuming from your name your a gingerbeer), if a driver, over those long nights? etc etc, please watch the job sheets, there could be a big one coming up! Sigh, why is it so obvious to Chockchucker and the powers to be have not a clue?
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Old 15th Jun 2011, 07:55
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Alliance registered 2 more F100's in the last week.

What're the odds it's to take over more QLink QLD flying?
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Old 15th Jun 2011, 09:22
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Seriously though, I reckon these are the Network Fokkers.

I think when Q announced they would buy 10 more, they didn't realise that there weren't any left that were a common config to Network's on the market.
The ones that are on the market are all clapped out or have small cargo doors/620-15 engines or even worse previously operated by dodgy third world operators.

Network's 2 F100s + 1 parts bitch are sister ships to Alliance's...
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Old 15th Jun 2011, 11:12
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No conspiracy^^

alliance now have more aircraft than skywest - would be a substantial cost to purchase. Perhaps the new aircraft are simply to buy the market as they haven proven their worth yet are cheap (relativly) to buy. Network can't buy what isn't available (Fokkers that is)

could be wrong
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Old 15th Jun 2011, 12:27
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Ben says it is 6x B737 and 6x A320.
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Old 15th Jun 2011, 12:43
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why would Qantas want to buy f100s. With millions in the back wouldn't it make more sense to get some new emb190s or order some comac arjs.

I would have thought old f100s would cost a mint to maintain and i don't know about every one else but i prefer flying in a new jet compared to scary old clappers. Also, why have virgin and Q not got any 737-900ers. I would have thought they would be a sound choice for replacing the old 767s and better off doing the perth runs than the a330s.
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Old 15th Jun 2011, 18:58
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Can someone please find out who is taking the aircraft instead of Qantas????????????

You don't just "cancel" an order. Deposits have been paid, there are non refundable costs associated with a cancellation.

Moreover, if you have a delivery slot you can sell it in certain circumstances and make a profit.


I wonder if an aircraft leasing company is taking these aircraft off Qantas hands?


FFS can someone please follow the money on these transactions?
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Old 15th Jun 2011, 21:52
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Maybe they were just options that have been cancelled, they had way too many b787's on order as options.

This could just be yet another scare tactic to the pilots/engineers/cabin crew to show there is real doom and gloom out there when it's negotiating pay.

Also shows some tough stance to the market about what they are doing, in an attempt to stem the share price flow of death. Of course with a share price that low, they could not get the finance for all of them no doubt

Just a thought sunnie.
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Old 15th Jun 2011, 22:44
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Jaba, "options" don't get cancelled, they get sold. Qantas, assuming they were buying these aircraft themselves, have had slots booked on the Boeing and Airbus production lines for years, it's not like you are buying a Holden off the showroom floor.

If the aircraft were due for delivery this year, then a lot of them will be already under construction (or their components). Someone will have to take those aircraft. It might be rather instructive to find out who is taking them and under what terms.
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Old 15th Jun 2011, 23:04
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or order some comac arjs.
I think you may find that even though the "corporate" memory at QF seems to be similar to that of a common housefly, their willingness to stake the future on yet another undeveloped, untested aircraft design, is somewhat compromised by the A380/B787 delivery debacle.
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Old 15th Jun 2011, 23:04
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So with the continued retirement of the 734's there will be a reduction in the Qantas 737 fleet! With great loasd factors over the last few months i have got to ask what planet are these people on, or are they just reducing liability in preparation for the upcoming takeover deal?
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