• A burning issue

    The Knysna fires have shown that SA needs to be fire-aware and wary, says Mandi Smallhorne.

  • True economic freedom

    Harping on inequality and repressive rich people deflects attention from the real issues, say analysts.

  • Terry Bell's Inside Labour

    A winter of discontent looms as public sector unions gear up for pay and benefit talks.

All data is delayed
Loading...
See More

Qantas cancels $8.5bn Boeing orders

Aug 23 2012 09:52
AFP

Sydney - Embattled Australian flag carrier Qantas Airways on Wednesday cancelled orders for 35 Boeing 787 aircraft to cut costs after posting a steep full-year net loss.

The decision represents an $8.5bn reduction in capital expenditure at list prices, it said.

"Qantas continues to practice disciplined capital management and, in the context of returning Qantas International to profit, this is a prudent decision," said chief executive Alan Joyce.

While the orders for 35 of the planes were put off, delivery of 15 787s to its budget offshoot Jetstar will continue as planned, with the first aircraft to arrive in the second half of 2012.

This will enable the transfer of Airbus A330 aircraft from Jetstar to Qantas' domestic service, and the eventual retirement of Qantas' Boeing 767 fleet.

"The B787 is an excellent aircraft and remains an important part of our future," added Joyce.

"However, circumstances have changed significantly since our order several years ago. It is vital that we allocate capital carefully across all parts of the group.

"Qantas has always maintained flexibility in its fleet plan and made changes when required."

The decision was made as the airline posted a full-year net loss of Aus$244m (US$256m), compared to a net profit of Aus$250m (US$262m) in the previous year.


* Follow Fin24 on Facebook, Twitter and Google+.

qantas

NEXT ON FIN24X

Behind the sparkle

2017-06-06 10:23

 
 
 

Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
0 comments
Comments have been closed for this article.
 

Company Snapshot

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

WhatsApp group admins in SA could face jail time their jobs

Previous results · Suggest a vote

Loading...