Regional Round-Up
Qantas in red, adjusts B787 order
September 1st 2012
Qantas Airways Group CEO, Alan Joyce, has cancelled orders for 35 B787-9s, a decision made as the losses for the carrier in the year to June 30, reached A$245 million (US$258 million). The anticipated loss was the first since the airline was privatized in 1995. Read More »
At the annual report press conference in Sydney, Joyce said Qantas hoped to save US$8.5 billion from cancelling the aircraft, which were due for delivery post 2014. He also revealed the airline would receive US$433 million from Boeing, made up of US$300 million for delivery delays of confirmed B787 orders and approximately US$133 million in returned deposits for the cancelled airplanes.
The Qantas Group’s results reflected the gap between the international division and the low-cost arm, Jetstar, and its subsidiaries and the group’s frequent flyer company. Qantas International lost A$472.9 million. Qantas’ domestic operations, Jetstar, and Qantas Frequent Flyer delivered profits above A$600 million.
Joyce said: “Circumstances have changed significantly since our order several years ago.” Qantas is committed to options and purchase rights for 50 B787-9s and will start taking delivery of its B787-8s in 2013.
