Cobham contract extended for 717s to 2026

[MarkR]

Another ten years for Cobham running the 717 fleet:

http://www.londonstockexchange.com/exchange/news/market-news/market-news-detail/COB/12878089.html

Cobham announced today that it has been awarded a 10 year, A$ 1.2 billion contract to continue provision of airline services to QantasLink, supporting their fleet of 20 Boeing 717 aircraft to the end of 2026.

The Cobham-Qantas partnership commenced in 1991 and Cobham remains the only third party trusted to operate under the Qantas brand, with operations across Australia into all States and Territories carrying more than 2 million passengers per year on behalf of QantasLink. The scope of services to be provided by Cobham remains similar to the current contract and the award extends the Cobham and Qantas partnership to 35 years.

Peter Nottage, Sector President, Cobham Aviation Services commented: "Qantas is a very important and long term customer for Cobham and this is a significant contract extension, providing a valuable contribution and scale to our overall commercial passenger flying operations in Australia through 2026. We have supported QantasLink since 1991 and the award of this extension demonstrates the ongoing value that Cobham provides for Qantas. This award is a great credit to our very professional and dedicated team of staff and I am delighted that they will have the opportunity to continue to support QantasLink for a further 10 years."

[Rowan McKeever]

Great news for Cobham, QantasLink and the B717! :)

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[Greg Hyde]

Does that defer QF's Ejet decision to 2026 as well ?

[Zac M]

E-Jet decision?

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[Rowan McKeever]

I haven't really seen any evidence that QF were seriously considering replacing the B717s. Especially with EJets. AJ is actually quoted in the latest Australian Aviation as saying they'd acquire more B717s if they were available. But yes, it does seem any such decision is at least in the 2026 timeline.

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[Greg Hyde]

10 years is a long time in aviation.

B717 survival will depend on running costs (FUEL).

If a new aircraft (100pax with Bus class) comes along with a better pax/km then the B717, I expect that it would be seriously considered in future fleet planning/expansion.

[Robert.M]

No doubt Qantas will watch Bombardier's CS100 with interest.

[Rowan McKeever]

Nope. The B717 survives on decent operating economics and comparatively very, very low cost of ownership. It benefits from the DC-9 family's very long service life and service intervals. The Fokker 100 is in a similar position, especially in terms of cost of ownership.

It's also quite possibly the only aircraft in its class that can beat it on operating costs is the CSeries. QF has no doubt looked at the CSeries but it seems they believe the combination of B717 and F100 is best suited to most of their needs for the next 10 years.

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[Max C]

A new type will also require a large amount of capital expenditure, something QF will want to avoid for the time being given the short term focus is on the B787-9's.

When they are serivcable, the B717 is the perfect fit for the QF network. The new contract also contains clauses around improving the reliability and efficiency of the B717.

Whether the B717 and F100 continue to run side by side in PER will largely depend on the resource sector.

I'd expect to see quite a few more B717's get the J class refit over time.

[Greg Hyde]

QF should keep an eye on Volotea who are replacing their B717's with A319's over the next couple of years if they want to pick up more.

https://www.flightglobal.com/news/articles/volotea-to-replace-717s-with-used-a319s-422975/

[Rowan McKeever]

Exactly, Greg. V7 will be a good source of B717s in the short- to mid-term, although DL and possibly HA will fight very hard for the V7 frames I expect.

I agree with Max, I see more of the B717s moving from PER over to the East coast in J/Y configuration. I think they have more to do over here, and their 'loss' in the West can be countered by 'new' F100s.

[Greg Hyde]

Rowan, I read recently that HA is considering an e-jet to replace the B717's with Embraer E-Jet E2 or Bombardier CSeries under consideration.

It all comes down to bangs for your bucks.