Qantas cancels 15 Dreamliner orders

[Greg McDonald]

From ninemsn:

QANTAS has cancelled orders for 15 Boeing 787 Dreamliners and delayed the deliver of a further 15 aircraft due to turbulent market conditions.

But the national carrier says it remains committed to the new the carbon fibre jetliner.

Qantas said it had reached a mutual agreement with Boeing to defer the delivery of 15 Boeing 787-8 aircraft by four years and cancel orders for 15 Boeing 787-9s scheduled for delivery in 2014/2015.

Chief Executive Alan Joyce said the changes to the group's B787 orders were appropriate in the current climate.

Mr Joyce said discussions with Boeing, which commenced some months ago, had not been influenced by the announcement this week of a design issue and further delay to the aircraft's first flight.

The cancellation of 15 B787-9s would reduce the group's aircraft capital expenditure by $US3 billion ($3.73 billion) based on current list prices, Mr Joyce said.

Mr Joyce said Qantas announced its original B787 order in 2005 and the operating environment for the world's airlines has clearly changed dramatically since then.

”Delaying delivery, and reducing overall B787 capacity, is prudent, while still enabling Qantas and Jetstar to take advantage of growth opportunities and market demands, both domestically and internationally,” he said.

Mr Joyce said Qantas remained committed to the aircraft as the right choice for Jetstar's international expansion, Qantas's growth and as a replacement for Qantas's B767-300 fleet.

[Michael Morrison]

SO bascially no 787's for the QF group until 2013
the first 15 will go to Jetstar in 2013-2014
then the next 15 smnaller 787-8's will go to QF to replace 767's in 2015
with the last 20 due after that.

I wonder if any more 332's that are excess to QF will move over to JQ?

[NickN]

With JQ expanding services and QF contracting it would probably make sense for the spare A332's to go over to JQ.

[Mike W]

It looks like Dixon got out at the right time alright.

It seems Qantas is copping it from everywhere since then (economic recession, swine flu, maintenance issues, US-Aus competition, dodgy 330s) leaving it up to Leprechaun Joyce to sort out. It seems decades ago since the halcyon days of the 787 orders.

By the time QF/JQ get their Deamliners, there'll already be a bunch (hopefully)flying around these parts (NZ immediately comes to mind with their 9ers being the first of the new model)

[Justin L]

As the 787s are planned for routes including European cities such as Rome and Athens out of a SE Asian hub, I was wondering what the range out of say Singapore would be towards Europe with a 332? How far northwest of Singapore would they get? Could JQ continue their expansion plans initially without 787s (if economic conditions recovered) or would they wait?

[Gerald A]

Justin

A330-200 could be used on SIN - CDG / SIN - LHR
SIN - CDG 5794nm
SIN - LHR 5879nm

A330-200 & A330-300 could be used on SIN - CDG / SIN - LHR
BKK - CDG 5018nm
BKK - LHR 5177nm

For nm I used Great Circle Mapper

[Ash W]

Please refrain from quoting the entire previous post - Thank you - mod

Does that take into account ETOPS?

[Tom PER]

How many more A330's does the QF group have on order?

[Craig Sandford]

Does that take into account ETOPS?

I don't think ETOPS would be a problem between SIN and Euro destinations. Most of the over water flying would be over the Bay of Bengal, with plenty of landing options in Malaysia, Thailand and India.

There would be a few airports along the normal routing that you wouldn't want to land in now days (eg Afganistan), but in an emergency I suspect you are a little less picky, and able to find military support.

[Daniel F]

Isn't ETOPS only an issue if flying over long stretches of water or uninhabited land? Don't think that's the case between SIN or BKK to Europe.

[Ash W]

Please refrain from quoting the entire previous post - Thank you - mod

You are kind of right. More correctly you need to fly a path that puts you within a certain time of a suitable diversion airport. Flying Asia to Europe you do have to fly a long way over Russia where there vast amounts of emptyness, so ETOPS may be an issue. I don't know for certain, I just asked in my previous post as it is a consideration, as sometimes a longer path must be flown to keep within ETOPS rules.

[Brad Myer]

How many more A330's does the QF group have on order?

JQ are getting 1 maybe 2 more A332s from the end of the year.

[D Chan]

There would be a few airports along the normal routing that you wouldn't want to land in now days (eg Afganistan), but in an emergency I suspect you are a little less picky, and able to find military support.

add Pakistan to the list too

[Lukas M]

Could JQ continue their expansion plans initially without 787s (if economic conditions recovered) or would they wait?
Whats everyone's thoughts of AirAsia could being a threat to JQ's European operations?

AirAsia X CEO recently said they will be introducing connecting baggage from Australia to London, and if Sydney comes online in November, as well as Adelaide, then they have a nice little feed there. They have also mentioned that they want to fly to Germany as well as other European ports.

They are also introducing a new Premium product up front, and new wider economy seats that actually recline this time.

[Jarden S]

Its a shame Qantas not switch 15 787s for 15 777s they certainly could place them on lots of new routes some are too big for 747s and would make some present routes become more viable.

[Matt_L]

Please refrain from quoting the entire previous post - Thank you - mod

It is a shame.

It's a shame they were touted as the launch customer of the 777 and then suddenly changed their mind. Why they never recieved one is anyone's guess as they are undoubtedly one of the most efficient, safest and widely used planes on long haul sectors, be it a Sydney to LAX or a Sydney-Singapore.

Albeit in the current economic climate the decision is justified, the choice to not go with 777 at all is one I think that will constantly haunt them imho as airlines such as Cathay, SIA, British Airways, Emirates, Etihad with such highly efficient, economically viable planes etc lead the recovery from the economic crisis in the next few years.