Qantas Cancels 787-9 order

[tuppaware]

As said on twitter this morning

Qantas cancels 35 787-9s to continue capital expenditure reduction. Keeps 15 787-8s for Jetstar, as well as 50 787-9 purchase rights/options

Jetstar is the new Qantas and Qantas is the new Ansett.
I dont know about you, but cancelling 787s makes me loose hope for QF.

 

[markis10]

They have not cancelled them, just moved them back to options from commitments in terms of timing, although options and commitments have dropped in total:

http://www.asx.com.au/asxpdf/20120823/pdf/4286925t854j6x.pdf

 

[tuppaware]

They have not cancelled them, just moved them back to options from commitments:

http://www.asx.com.au/asxpdf/20120823/pdf/4286925t854j6x.pdf

I would say unless there is a major turn around in INT profits I don't expect to see them flying in QF colours very soon.

 

[straitman]

This continues to give me a bad feeling about the Qantas group.

They seem destined to do a Pan Am though I really hope I am totally wrong. :sad:

 

[markis10]

I would say unless there is a major turn around in INT profits I don't expect to see them flying in QF colours very soon.

Would agree, lets move the options forward but take the need for the chequebook out of the equation for a few years!

 

[k3nnis]

Lets do a hypothetical, if QFF goes which FF program would most go to?

 

[SeatBackForward]

Lets do a hypothetical, if QFF goes which FF program would most go to?

Turkish Airlines: http://www.australianfrequentflyer....irlines-status-match-39599-15.html#post667574

 

[k3nnis]

So you will switch to *A

 

[oz_mark]

This continues to give me a bad feeling about the Qantas group.

They seem destined to do a Pan Am though I really hope I am totally wrong. :sad:

It largely depends on just what the QFi turnaround plan is, and whether it makes a difference a few years down the track.

The bits we have seen of it have fallen over (redQ etc), or been service cutbacks (although FRA still seems to have survived in todays announcements!)

Unfortunately, there is a bit of lack of detail as to what the rest of the plan actually is, so it is hard to know how they are going!

 

[k3nnis]

better spend up your QFF points or am I being too pessimistic

 

[Bundy Bear]

All that will happen in 20 years is that Jetstar will get bigger and then by magic Jetstar will be rebranded Qantas.

Like all businesses you need to keep working with a plan but never give up hope that things will get better.

 

[dougieboy]

Writing is on the wall - jumping ship (carrier) to AA membership. When your customers are already complaining about substandard product and service offering, and on top of that a cancellation/deferring aircraft orders. The 787 was a symbol for renewal and growth. Actions of the board are not inspiring hope of the company's future. The accountants shall re-JOYCE naturally but this relationship has become forlorn.

 

[medhead]

Unfortunately, there is a bit of lack of detail as to what the rest of the plan actually is, so it is hard to know how they are going!

Isn't that the $400 million qfuture benefits?


Sent from the Throne

 

[Must...Fly!]

Come to think of it, rather surprising that we didn't think of this being a possibility. The higher capital costs have been flagged before by AJ.

I don't really believe that the 787-9s are needed as much now the 767s are being totally refitted. To the traveller, an airliner is really only as old as the cabin.

What is going to be the real problem now is the consumer reaction to this...

 

[MarcB]

Before everyone gets in a tizz, I'd recommend you read all the ASX releases. The little pieces that get fed by the media do not tell the whole picture. Maybe I'm the optimist, but given the difficult environment, I'd say IMHO QF have still done well. Businesses that do not adapt do not survive. As consumers, we can't expect a legacy product at a new world cost base.

 

[SeatBackForward]

What is going to be the real problem now is the consumer reaction to this...

Business Travellers, Leisure Travellers and Budget Travellers..I think we'll see different reactions from them all.
Budget travellers will rejoice that Jetstar is the shining beacon of hope for Qantas Group
Leisure Travellers will probably say "meh"
Business Travellers well, thats the prize question.

 

[SeatBackForward]

The share markets liking the announcement up 3% already.

 

[oz_mark]

I don't really believe that the 787-9s are needed as much now the 767s are being totally refitted. To the traveller, an airliner is really only as old as the cabin.

Well, the refit is only to strectch things out until the A330s return from Jetstar, when they will be retired. So, the 767s really only have a few years left.

 

[Must...Fly!]

Well, the refit is only to strectch things out until the A330s return from Jetstar, when they will be retired. So, the 767s really only have a few years left.

16 of the 22 are being refurbished and those will continue with mainline if I am correct.

 

[markis10]

16 of the 22 are being refurbished and those will continue with mainline if I am correct.

Just because they are being refurbished does not mean there will be a long time before they retire, a good example is the two to three class 744s that are now being retired, was not long ago they got a refurb!