Qantas results and fleet upgrade

[markis10]

IFE is being changed as well, more iPads??

 

[Pvcmenace]

Spin.

B767 soldier on until date unknown (personally I like them anyway!), B734s gone by end of this year, no word on JQ giving up A330's, the A333 and 332 reconfigs starting in late 2014. Good news on additional B738s and more B717's says FIFO charter and resource markets doing well. So not all bad news. Will be really intersting to see the $ numbers.

Subtext is: "We are starting to reconfigure our already outdated international product in 2014 so that it matches our competitors product that they already have now. Despite the market reaction we will try to sell our 2+3+2 Starclass A330 product as Business Class in transcon Aus services until the A332 reconfig is done, despite now knowing that VA have better A330s on the way. More domestic capacity required with the retirement of B767 fleet. Internationally - QFi is having its a#$% handed to it by competitors so the A332 and A333s are due for heavy and maintenence so lets stick QFi with those costs, after all we can't have JQ wearing those costs! All this is in reaction to poor fleet choices in the past as we invested in "hub busting" aircraft and now only have one capacity constrained hub (SYD), and we are still awaiting the B787 which we hope and pray will change all the known laws of economics when its introduced into service with JQ. Domestically - despite having problems with capacity/congestion and high labour costs in our hub of SYD we are going down the road of frequency and not capacity."

If you notice they say they are refurbishing 10 A333 and 20 A332 when they currently only have 9 A332 in the mainline fleet. That would indicate JQ aircraft coming back to QF mainline as the 787 is introduced.

 

[Aussie_flyer]

Confused - haven't they just upgraded their 767's (at a cost I assume) and now they're retiring them next year?

The minor tidy up of the 767s was always planned to be a temporary measure to extend their life a couple more years. The 767s are overdue for retirement but 787 delays have meant they will fly longer.

 

[eastwest101]

If you notice they say they are refurbishing 10 A333 and 20 A332 when they currently only have 9 A332 in the mainline fleet. That would indicate JQ aircraft coming back to QF mainline as the 787 is introduced.

Yes I know all that - but you are making the mistake that things cannot change, what to do until the already late and delayed B787 is finally back in the air? What if the unlikely event that it never makes it back in the air? What if Boeing engineers and production stops? How big are these delays going to be?

http://online.wsj.com/article/BT-CO...FinancialServicesAndInsurance_middleHeadlines

 

[samh004]

IFE is being changed as well, more iPads??

Well by then they may have released an app, or more customers might be clued in to streaming technology onto their devices, plus I'd imagine the iPad's could be transferred over from retiring 767's to refurbished A330's.

On another topic though, I wondered if the extra 737 orders may have been at a substantial discount due to even more 787 delays thus why they wont affect planned capital expenditure?

 

[Flying Fox]

Glad to hear that the B737-400s will be gone by the EOY.

If any AFF members are planning a farewell flight on the last B737-400 service, I will opt out now

 

[mannej]

Glad to hear that the B737-400s will be gone by the EOY.

If any AFF members are planning a farewell flight on the last B737-400 service, I will opt out now

Apart from their age I never going them that bad really

 

[VA777]

Group profit ultimately driven by Boeing 787 compensation.

Refurb of A330 not commencing until late 2014 finish??

Some more story telling by QF.

 

[Comoman]

Group profit ultimately driven by Boeing 787 compensation.
F.

Seems some journalists agree:

Boeing cash papers over Qantas cracks

 

[simongr]

Group profit ultimately driven by Boeing 787 compensation.

Refurb of A330 not commencing until late 2014 finish??

Some more story telling by QF.

Surely the point of compensation is to offset the cost or missed profits that you would have earned if the aircraft had been delivered on time. QF are incurring costs on older aircraft that they would not have incurred if aircraft had been delivered on time.

 

[amaroo]

Group profit ultimately driven by Boeing 787 compensation.

Refurb of A330 not commencing until late 2014 finish??

Some more story telling by QF.

Sure, Boeing gave them cash so that they could report a profit - pull the other one.

Delay = cost = compensation.

The A330 re-fit is fluff.....won't stop the flow of passengers over to carriers that have flat J beds or for that matter an F cabin :!:

The competition in the Dom market is producing real consumer benefits. This might weigh very heavy with the upcoming ACCC ruling for VA/Tiger joint venture:idea:

 

[geordieladinoz]

What if the unlikely event that it (787) never makes it back in the air?

If this eventuates it will be a worldwide issue and far greater than Qantas missing a few planes. The s**t will well and truly hit the fan!

 

[docjames]

Interesting reading.

The $100m compo is fair game as supposedly that's the agreement reached with Boeing on "profit" that QF would have made if the 787s had been on time. No doubt a huge spectrum for debate, and arguably that isnt just the amount in the reported financial year - I think they've fairly shown the $100m so not "hiding" it. But attributing it to one year is probably not a true reflection. But there's no other way to do it (unless payments are staggered from Boeing).

"Late 2014" to "start" the A330 refurb is slow. "Late 2013" or "immediate" would have been better.

How many 763s were there in total (at peak) compared to 10 to service domestic and 20 to service Asia/international? Has anyone done the maths on what these numbers mean up against current 763/330 (combined) routes? All mention of domestic A330s on Transcon to PER (no mention of DRW routes, CNS, SYD-MEL-BNE etc). Will they be "segregating" the international 330s vs the domestic ones, or will it be an equal fitout allowing for subs?

Reports about no discussion with Boeing about delivery delays - it's hard to see how QF (read: JQ) will be getting the 788s on the current schedule (August 2013 iirc).

No discussion about future A380s that are on order.

No route discussion other than "current structure and EK are awesome" (my paraphrasing).

No increased frequency or connectivity into Asia.

No discussion re: BA etc

"Restructure of Jetstar Pacific" - what does that mean?


/summary/
There were a lot of questions left unanswered.

 

[simongr]

Interesting reading.

The $100m compo is fair game as supposedly that's the agreement reached with Boeing on "profit" that QF would have made if the 787s had been on time. No doubt a huge spectrum for debate, and arguably that isnt just the amount in the reported financial year - I think they've fairly shown the $100m so not "hiding" it. But attributing it to one year is probably not a true reflection. But there's no other way to do it (unless payments are staggered from Boeing).

Even if the payments were staggered it is likely that they would have to recognise the revenue from Boeing as an asset and take the credit to income in the year that the compensation was committed by Boeing - it isn't like it is a service that will be provided over time.

 

[samh004]

How many 763s were there in total (at peak) compared to 10 to service domestic and 20 to service Asia/international? Has anyone done the maths on what these numbers mean up against current 763/330 (combined) routes? All mention of domestic A330s on Transcon to PER (no mention of DRW routes, CNS, SYD-MEL-BNE etc). Will they be "segregating" the international 330s vs the domestic ones, or will it be an equal fitout allowing for subs?

Reports about no discussion with Boeing about delivery delays - it's hard to see how QF (read: JQ) will be getting the 788s on the current schedule (August 2013 iirc).

I think you'll find the A330-300 are for international duties, and the bigger fleet of A330-200 are for domestic duties.

From what I've read, the A330-300 is longer than the A330-200, however from the seat maps, I can see they're currently very similarly configured (in terms of number of seats). With a new product, I'm not sure if that would remain the case, but would imagine they'd want to keep them similarly configured so they could sub them/grow to new destinations.

They have 22 767's currently (though I'm looking at Qantas Source which seems to have old info).

 

[docjames]

Even if the payments were staggered it is likely that they would have to recognise the revenue from Boeing as an asset and take the credit to income in the year that the compensation was committed by Boeing - it isn't like it is a service that will be provided over time.

Yes, I realise that. I meant unless there were ongoing negotiations (ie. if the JQ planes arent delivered on schedule, they would re-negotiate and then have to recognise another payment).

 

[Berlin]

I think now is the perfect time to negotiate a good deal on some A350s. Looks like a beautiful plane to me and most importantly, it might not just be a "Dream" but actually fly in the real world! :shock:

 

[mannej]

I think now is the perfect time to negotiate a good deal on some A350s. Looks like a beautiful plane to me and most importantly, it might not just be a "Dream" but actually fly in the real world! :shock:

What's to say they don't have the same issues as the Dreamliner? Lets not forget the 380 was not on time either...

 

[markis10]

What's to say they don't have the same issues as the Dreamliner? Lets not forget the 380 was not on time either...

That dream is already late in flying, if new designs were all the rage the 767 and 777 production lines would be very quiet.

 

[mannej]

That dream is already late in flying, if new designs were all the rage the 767 and 777 production lines would be very quiet.

The post referred to the 350. Considering that a lot of airlines have had their 787 and 380 orders delayed by the manufacturer, I don't believe it is such a good idea running into the 350 just yet.