Qantas Airways Ltd said yesterday it had canceled orders for 15 Boeing 787s and delayed the delivery of a further 15 aircraft because of turbulent market conditions.
Qantas chief executive Alan Joyce said the decision had not been influenced by Boeing’s announcement earlier this week of a design issue in the 787 and further delay to the aircraft’s first flight.
He said discussions with Boeing about the order had started some months ago.
PHOTO: AFP
Qantas said it had reached a mutual agreement with Chicago-based Boeing Co to defer the delivery of 15 Boeing 787-8 aircraft by four years and cancel orders for 15 Boeing 787-9s (which are slightly larger) scheduled for delivery in 2014 and 2015.
Joyce said Qantas remained committed to the 787 as the right choice for the international expansion of Jetstar, its low-cost subsidiary, and as an eventual replacement for its Boeing 767 fleet.
The 787 is the first commercial jet made mostly of light, sturdy carbon-fiber composites instead of aluminum. Large parts of the plane, such as the fuselage sections and wings, are made in factories around the world and flown in a huge modified 747 to Boeing’s wide-body plant in the Seattle area, where they are essentially snapped together.
Boeing said on Tuesday that it needed to reinforce small areas before conducting a test flight.
The cancellation of orders for 15 787-9s would reduce the group’s aircraft capital expenditure by US$3 billion based on current list prices, Joyce said.
He said Qantas announced its original 787 order in 2005 and the “operating environment for the world’s airlines has clearly changed dramatically since then.”
“Delaying delivery and reducing overall B787 capacity is prudent, while still enabling Qantas and Jetstar to take advantage of growth opportunities and market demands, both domestically and internationally,” he said in a statement.
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