Qantas announced it had reached mutual agreement with Boeing to defer the delivery of 15 Boeing 787-8 aircraft by four years and cancel orders for 15 787-9s scheduled for delivery in 2014 and 2015. Qantas Chief Executive Officer, Alan Joyce, said the changes to the Group’s 787 orders were appropriate in the current climate, and that discussions with Boeing, which commenced some months ago, had not been influenced by the announcement this week of a design issue and further delay to the aircraft’s first flight. “Qantas announced its original 787 order in December 2005, and the operating environment for the world’s airlines has clearly changed dramatically since then,” Joyce said.
“The agreement we have reached with Boeing will provide greater certainty going forward in terms of our fleet renewal and growth strategies as well as broader resource planning and matching capacity with demand. “It will also allow Qantas to manage capital investment more effectively while still delivering an aircraft that offers sound prospects for our flying businesses and our customers.
“The latest delay is disappointing, but we do not expect it to impact the Qantas Group given these changes to our delivery program. We remain committed to the aircraft as the right choice – for Jetstar’s future international expansion, Qantas’ growth and as a replacement for Qantas’ 767-300 fleet.”
After the order changes, the Qantas Group will jointly remain the biggest airline customer for 787 family aircraft. Joyce said the cancellation of 15 787-9s would reduce the Group’s aircraft capital expenditure by US$3 billion based on current list prices. “Delaying delivery, and reducing overall 787 capacity, is prudent, while still enabling Qantas and Jetstar to take advantage of growth opportunities and market demands, both domestically and internationally,” he said. Qantas said that details of the contractual agreement with Boeing remain confidential, but the settlement is materially in line with that previously recognised.
