BAe 146 replacement slips down agenda behind domestic ambitions and ANZ tie-up

Qantas's acquisition of regional jets to replace its ageing BAe 146 fleet has been put on the backburner, according to industry sources.

The Australian carrier started evaluating 146 replacements in 2000 under a joint programme with part owner British Airways in a bid to secure cost concessions through economies of scale. BA's deliberations of its operations under its "Future Size and Shape" review, including its regional airliner services, held up a joint decision last year, with contenders originally expecting a resolution to slip into early this year. However, a regional jet is no longer a top priority for Qantas, say sources, who believe the carrier is more concerned with filling the hole in the domestic market left by the collapse of Ansett and by its plans to take a 25% stake in Air New Zealand this year. The airline is also dealing with the recent entry into service of two types - the Airbus A330-200 and the Boeing 747-400ER.

BA and Qantas had been considering buying up to 60 new large regional jets, with Qantas thought to be interested in 15 firm orders and 15 options. An entry into service date of 2004 was originally mooted. National Jet Systems has 15 146s under contract for Qantas.

After the demise of the BAE Systems RJX and Fairchild Dornier 728, deliberations involved the Embraer 170/190 family and Bombardier's CRJ700/900 family, although the latter would not meet Qantas's requirement for 110 seats.

Embraer expects Qantas to decide this year, but adds that the airline is "not even close to an order". Bombardier says it is still promoting the CRJ family to the airline.

Some industry sources suggest, however, that Qantas is instead swaying towards taking more Boeing 717s. The airline operates 14 717s through its low-cost leisure arm Impulse and has been happy with the type, say sources.

Qantas says it is studying all available options, but no decision has been made on the way forward.

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Source: Flight International