Posted on 12/13/2005 6:03:53 AM PST by lowbuck
THE Qantas board will meet this morning to make firm decisions on its $20 billion fleet purchase program, one of the largest single investments in Australian corporate history.
Not only will the outcome be watched closely by international competitors wondering about what sort of deals can be had from the big two manufacturers, it will also indicate how big a part the discount operations of Jetstar's domestic and international operations will play.
Qantas plans to buy 100 planes over the next 10 years, and the potential shopping list includes the latest the industry has to offer in upgraded models and new planes.
Already ticked on the shopping list are 12 of the huge new Airbus A380s, which will carry 550 passengers on two decks. Sydney and Melbourne airports are spending hundreds of millions to cater for the giants.
The A380 will be a new weapon for Qantas in the emerging Pacific air war, with the company pledging to fly the plane first on the Melbourne-Los Angeles route after delivery in late 2006. If Singapore Airlines wins the right from the Federal Government to fly the Pacific route — a prospect that looks increasingly unlikely — Qantas' plans to fly the big jet on that route could come under pressure.
The Qantas board today will consider purchases of the next generation of planes from Boeing and Airbus Industries.
The new Airbus A350, which will carry up to 300 passengers on long-haul flights, could be particularly suited to Jetstar International's routes. The A350 must vie with Boeing's new 787 Dreamliner, which will have similar capacities. Neither plane will be available until late in the decade.
Also on the shopping list is likely to be the next upgrade of the old faithful, the Boeing 747 jumbo.
The 747, carrying about 400 people, is suitable for the long hauls to London via Asia and to the US.
Qantas is also likely to choose the Boeing 777 ultra-long-distance plane, which can carry up to 368 passengers for nearly 17,000 kilometres without refuelling. Ten of these new-generation planes are already in service.
Centre for Asia Pacific Aviation principal Peter Harbison expects considerable competition between Boeing and Airbus for the Qantas account.
He said Airbus had been a strong competitor in the past, offering perks like full pilot training.
Such incentives could be worth "hundreds of thousands, or even millions of dollars".
Should be interesting, although I would almost question their reasoning for getting both the 777-200/300LR and the next generation of 747s, since they would both be operated on essentially the same routes. The difference is that the 747X would have to stop in Asia somewhere before going on to London, whereas the 777LR is touted to be able to fly the distance nonstop. The A380 (in all of its ugly splendor) will be great for reducing fares (lower CASMs and all that), but again, if they're gonna use 747Xs for the Pacific routes as well, what's the point? Perhaps they'll take the Singapore Airlines approach, and outfit one type with premium seats a-la the A340-500, and make the other a 'cattle car'. Any thoughts?
Good point.
We will find out later today,, or tomorrow if Qautas orders the 747-8I pax version.
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