Posts: 3087
Joined: Thu May 27, 1999 4:25 am

Qantas Dismisses Airbus Reports

Fri Nov 17, 2000 2:28 am

What is going on here? Over the past few weeks, Qantas said nothing about the press reports regarding the A3XX. That led me to believe it was true and that today was the big day. Yet here we go again with QF denying everything. Do you think this is BA Board members turning down management on instructions from London? QF says they will announce one or the other before year-end, but I am still shocked after all this hype. Perhaps BA is thinking that QF didn't have the muscle to wrangle the best possible price out of Boeing. This is very interesting and may presage a BA request for "joint order" pricing requests on the 747X. That is speculation on my part only. Any comments?
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RE: Qantas Dismisses Airbus Reports

Fri Nov 17, 2000 2:46 am

I like your theory, Wingman. It is becoming increasingly apparent that British Airways will have nothing to do with Airbus when it comes to widebodies. And I wouldn't be surprised if London is trying to stop this order and renegotiate with Boeing on the 747X, as well as the 777. It would be sad if Qantas was the one airline of the eight that developed the 777 with Boeing that did not have it in their fleet.

If you are right, Wingman, the question is, will Boeing take advantage of this and give good prices? That is what remains to be seen.

It's a new day. Every moment matters. Now, more than ever.
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Joined: Wed Aug 18, 1999 5:49 am

RE: Qantas Dismisses Airbus Reports

Fri Nov 17, 2000 5:28 am

There is nothing more complicated here than an airline denying everything before the official announcement is made. This is actually normal practice, no matter how blatantly obvious it is that an order is in the offing.

As for BA's influence, to suggest that it is great is to overestimate it considerably. Yes, they have a holding and two or three directors, but Qantas does what suits Qantas and DOES NOT take orders from poms!

As for exercising any influence to buy Boeing, why should it? It is by now means clear that BA is ordering the 747X and we know that this order will not include an ultra long haul aircraft. An A330 order now will not necessarily preclude a 777 order in the future (although it would make a 340-5/600 order more likely). There is a more important reason. BA is running out of options as far as alliance partners in concerned and if it were to become involved in any action to prevent an Airbus sale, the French government would certainly go out of its way to make life difficult for them. If the proposed AF/DL alliance with BA goes out the window, what options are left.

No, BA will make its feelings known (which are by no means automatically anti-Airbus) like any other directors and will do what is necessary to make sure its holding in QF pays dividends, like any sensible shareholder.
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Joined: Sun Jul 04, 1999 4:54 am

RE: Qantas Dismisses Airbus Reports

Fri Nov 17, 2000 5:58 am

I agree with Wingman that BA have a part of this. I was hoping for this. It doesn't make sense to replace the 747 classics with A330s. QF wa reportedly looking for a 300 seat plus airplane and the A330 doesn't have the capacity or range to replace the 747 classics. I do hope they will get 777s which would suite them very well. The777Man
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