Wednesday, August 19, 2015

Qantas Chisels Out 8 787-9's for 2017

Qantas Airlines who has 50 787-9's frozen in option mode, chisels out an order for eight 787-9's for replacement for its older 747-400's, starting in the 2017-2018 time frame. The signal here is a measured Qantas buy during the next 10 years. They will get its 50 787-9's eventually within corporate cash flows and financial opportunity when those functions arise. No longer is its enormous order book looking at a one time mega buy.

ASBT Quote:

"We looked at both types of aircraft, on what the relative positions of the A350 and Boeing 787 were" admitted Qantas CEO Alan Joyce at the recent CAPA 2015 Australia Pacific Aviation Summit in Sydney, "and we found on all accounts the 787-9 was the better aircraft for us, for the market that we're talking about and the network that we're talking about."

Qantas is off the buffet line and has gone to the hors d'oeuvres only line, picking up eight Boeing tidbits in succession. 

However, expect Qantas to get its remaining 45 at peak convergences of favorable financing, route expansion or fleet retirements. It may come sooner for the Boeing order book as efficiency functionality falls into place, but not during 2015. The Boeing book, now becomes dicey guess, if it will reach a net 100 787 ordered this year. Fifteen are Locked-in, but not loaded up. Thirty more are on the rainy day reservation list.

Australian Business Traveler Link: