Australian carrier to seek bids from Airbus and Boeing for up to 100 aircraft to replace existing fleet and to expand
Qantas management aims to put a final recommendation to its board for an order for 60-100 new widebody aircraft order in October. Last week the board approved the release of a request for proposals (RFP) to Airbus and Boeing for the new aircraft.
Qantas has been evaluating a Boeing 747 replacement since last year, but recently added a 767-300 replacement to the requirement. The airline says the RFP will cover a mix of firm orders and options for the Airbus A350 or Boeing 787 for use on medium-haul international, trans-Tasman and Australian domestic services; and ultra-long range variants of the Airbus A340 or Boeing 777 to operate on “hub-busting” routes to the USA and Europe.
The airline has not detailed its delivery requirements, but says the order would be a A$20 billion ($15.4 million)-plus investment over 10 years. Qantas has a 60-strong widebody fleet, comprising Airbus A330s, 747s and 767s, with 12 A380s on order.
The new order would be for anything in between 60 and 100 aircraft, says chief executive Geoff Dixon, adding the aircraft would be used for replacement and for growth. Qantas subsidiary Australian Airlines also operates 767s, but the parent is not commenting on whether Australian could benefit from an A350/787 order.
Airbus co-chief operating officer John Leahy was in Sydney earlier this month visiting Qantas. He does not think that delivery delays with the A380 will hinder the European manufacturer’s chances of an A350 deal with the airline, although he concedes that Dixon is “a little bit annoyed with us”.
Qantas’s RFP comes as the airline announces a full-year net profit of A$765 million – up 17.8% on last year – despite rising fuel costs accounting for 19% of its total operating costs. Total revenue was up 11.4% to A$12.6 billion.
Despite conceding that Qantas is in “pretty good shape for an airline”, Dixon says it must continue its cost-cutting drive. The carrier has already achieved savings of A$545 million from the Sustainable Future Programme and is looking for a further A$1.5 billion in savings over the next two years.
Qantas is just completing the retrenchment of 200 senior management positions, but reviews are under way across the business, with Dixon confirming that there will be further job losses.
EMMA KELLY/PERTH
Source: Flight International
