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Qantas Cancels/Defers 12 Orders  
User currently offlinetullamarine From Australia, joined Aug 1999, 1596 posts, RR: 0
Posted (3 years 4 months 1 week 1 day 9 hours ago) and read 17279 times:

QF has announced they are cancelling or deferring 12 narrowbody orders to better match demand. No details of what aircraft have been cancelled though I'd guess they are 738s. Copy of ASX announcement available at www.asx.com.au/asxpdf/20110615/pdf/41z70sxg68v449.pdf


717,721/2,732/3/4/5/7/8/9,742/3/4,752/3,762/3,772,W,310,320/1,332/3,388,DC9,DC10,F28,F100,142,143,E90,CR2,D82/3/4,SF3,AT
14 replies: All unread, jump to last
 
User currently offlineKFlyer From Sri Lanka, joined Mar 2007, 1228 posts, RR: 0
Reply 1, posted (3 years 4 months 1 week 1 day 8 hours ago) and read 17112 times:

If they are narrowbody orders, they can only be 738s, right ?


The opinions above are solely my own and do not express those of my employers or clients.
User currently offlinejetfuel From Australia, joined Jan 2005, 2226 posts, RR: 0
Reply 2, posted (3 years 4 months 1 week 1 day 8 hours ago) and read 17112 times:

Could be A320's for JQ, as its the Qantas Group


Where's the passion gone out of the airline industry? The smell of jetfuel and the romance of taking a flight....
User currently offlinejoffie From Australia, joined Mar 2006, 812 posts, RR: 2
Reply 3, posted (3 years 4 months 1 week 1 day 8 hours ago) and read 17067 times:

I would of thought they would need the 738 urgently to replace the older 734's. I was thinking 787 but if it says Narrowbody, it could be 738 or the JQ A320 further orders (if any)

User currently offlineAusA380 From Australia, joined Jan 2009, 310 posts, RR: 0
Reply 4, posted (3 years 4 months 1 week 1 day 8 hours ago) and read 17012 times:

Interesting given they are saying that the QF International ops is where their profit problem is, so the corollary is that domestic is ok, so may be domestic profitability is not as strong as expected.

Seems inconsistent with the earlier comments Joyce made on investments in the international operations (which is desperately needed anyway).


User currently offlinetravelhound From Australia, joined May 2008, 942 posts, RR: 12
Reply 5, posted (3 years 4 months 1 week 1 day 6 hours ago) and read 16415 times:

Quoting AusA380 (Reply 4):
Interesting given they are saying that the QF International ops is where their profit problem is, so the corollary is that domestic is ok, so may be domestic profitability is not as strong as expected.



The two operations are somewhat independent and should be looked at in isolation.

From what I can work out QF domestic (flying standard A320's and 737's) can adjust its fleet to match demand quite quickly. On the other hand QF international has to deal with many long-lead time items and customisation of aircraft, so this part of the business can't respond as quickly as domestic.

The good news is QF advised an increase in Cash at Bank (year on year) and all further aircraft acquisitions can be made from operating revenues.

Not too bad really!


User currently offlineqfa787380 From , joined Dec 1969, posts, RR:
Reply 6, posted (3 years 4 months 1 week 1 day 6 hours ago) and read 16297 times:

I have a feeling that this deferral/cancellation may involve JQ 32Xs. QF really needs to take on the new upmarket DJ head-on and the threat from Tiger seems to be diminishing. Maybe JQ's growth needs to be cut back a bit. There has also been a lot of chatter recently about QF re-entering old markets they left with the emergence of JQ. OOL and Tasmania have been mentioned. QF needs to replace those 734s and there are more JQ 32X orders in the pipeline than QF 738s.
But I could be wrong.


User currently offlineBaroque From Australia, joined Apr 2006, 15380 posts, RR: 59
Reply 7, posted (3 years 4 months 1 week 1 day 5 hours ago) and read 16236 times:

Missed this thread when I posted similar. I have suggested deletion of the duplicate, but from that the Crikey link is more useful than most.
Stock exchange announcement from Qantas
http://www.asx.com.au/asxpdf/20110615/pdf/41z70sxg68v449.pdf
Joyce has announced that Aircraft lease plans will be reduced by Aus$300 million with Qantas now expecting to take delivery of 34 aircraft in 2011-12 instead of the 43 previously announced. The 12 appears to come from orders for 12 narrow-body jets would be cancelled or deferred, including three anticipated in the second half of this year.

But will they be for Qantas (737s) or Jetstar (32x)? That appears unclear.

No answer from Crikey's Sandilands either
http://blogs.crikey.com.au/planetalk...qantas-blinks-and-cuts-jet-orders/

Between the Chilean ash, staff revolting and now CAPEX cut back, Qantas is not having a happy time.


User currently offlineBaroque From Australia, joined Apr 2006, 15380 posts, RR: 59
Reply 8, posted (3 years 4 months 1 week 23 hours ago) and read 13442 times:

One thing that is curious about this rethink is that unless QF took out currency hedging - which they probably did - these planes they are cancelling must be going to cost about 20 to 30% less than when they ordered them. Or in other words, maybe this is a bit worse than it appears.

Another oddity is that AJ keeps moaning he is losing money on long haul but doing quite nicely on domestics. But the cancellations appear to be concentrated on domestics. Why so?


User currently offlineparapente From United Kingdom, joined Mar 2006, 1606 posts, RR: 10
Reply 9, posted (3 years 4 months 1 week 23 hours ago) and read 13178 times:

It maybe that they are keeping it unclear on purpose.Then see who (A&B) offer the best terms considering what else is on the table.

User currently offlinePanAm_DC10 From Australia, joined Aug 2000, 4178 posts, RR: 89
Reply 10, posted (3 years 4 months 1 week 22 hours ago) and read 12538 times:
AIRLINERS.NET CREW
COMMUNITY MANAGER

On February 17th QF Group announced the following;

Key points of the fleet plan update, which covers the period through to the end of FY13:

- lease of five additional B737-800s, and the extension of leases on two B737-800s, for Qantas
- lease of 10 additional A320s, and the extension of leases on 11 A320s, for Jetstar
- lease of one A330-200 for Jetstar
- purchase of 10 Fokker 100s for Network Aviation
- lease of two additional B717s for QantasLink

It sounds like it could be any combination of these but if it is B738 or A320 both OEM's will have the problem allocating the freed up delivery slots.



Ask the impossible to achieve the best possible
User currently offlineAirNZ From , joined Dec 1969, posts, RR:
Reply 11, posted (3 years 4 months 1 week 21 hours ago) and read 11468 times:

Quoting AusA380 (Reply 4):
so may be domestic profitability is not as strong as expected.

Not necessarily anything to do with profitability....they clear give the reason as matching demand/capacity and which is a different thing entirely.


User currently offlineStickShaker From Australia, joined Sep 2004, 758 posts, RR: 5
Reply 12, posted (3 years 4 months 1 week 20 hours ago) and read 10354 times:

It has been reported on Crikey ...

The cancellations are for six 737-800s and six A320s


Cheers,
StickShaker


User currently offlinesmi0006 From Australia, joined Jan 2008, 1539 posts, RR: 0
Reply 13, posted (3 years 4 months 1 week 20 hours ago) and read 10240 times:

I think it would restore some people's faith in QF is these cancelations/deferals were not infact for QF but JQ. Whilst I undserstand the board manages the expectations of the shareholder who can't defferientate between JQ and QF, all they see is a short term dividend. I feel that without further investment in QF (yes perhaps even to the detriment of investment in JQ) the long-term outlook for the QF sharehoulders, perhaps even short term considering how low their current price is, shall only get worse!

Quoting AusA380 (Reply 4):
Interesting given they are saying that the QF International ops is where their profit problem is, so the corollary is that domestic is ok, so may be domestic profitability is not as strong as expected.

Confusing again as it was noted by the Alan Joyce and his team that the international operation is continuing shrinking to a point where economies of scale will be lost and it will not be able to be supported any longer. Thus the creation of Lesely Grants team to analyis new posibilites for expansion and profitablity. However Alan Joyce stated that they will not be investing any money into international operations until it returns to profability... How will it grow to become profitable again without investment?


User currently offlinebill142 From Australia, joined Aug 2004, 8457 posts, RR: 8
Reply 14, posted (3 years 4 months 1 week 16 hours ago) and read 7249 times:

Quoting smi0006 (Reply 13):
How will it grow to become profitable again without investment?

Turn it into Jetstar of course!


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