QF A380 Cancellations

[civinod]

What's the consensus on the cost of cancelling these planes.

Do you think Airbus has let them walk away without penalty or were they just options they have on these planes.

It certainly seems to reinforce the view that QFI bet big on the wrong plane.

If only Dixon had ordered 777's back all those years ago perhaps QFI would be in a slightly better position.

Then there is always the debate about how long Joyce has got to see some sort of turnaround.

Mind you it goes both ways, Borghetti for all the good press he is getting is no genius. Anyone can lose money at the rate he is and build market share.

Anyone care to share there thoughts?

 

[Must...Fly!]

I doubt it will cost them anything, and if they don't want them I'd imagine EK will take them so QF won't really lose out.

 

[lovestotravel]

Cost of "deferring" the A380's is minimal if anything at all

Qantas delays A380 to buy 110 A320s, while eyeing first 787 - Flights | hotels | frequent flyer | business class - Australian Business Traveller

No doubt part of the deal to buy 110 A320's was linked to being able to defer or cancel the A380s

VA is probably doing worse than QF considering their size/assets

 

[civinod]

I am really surprised how the "PR" spin is going on the war with QF and VA.

The knives are out for Joyce but somehow Borghetti is painted as a hero in the rejuvenation of VA.

I am surprised that Borghetti isn't receiving some more scrutiny especially after the massive loss reported on Friday.

 

[BAM1748]

Normally when you place an order for aircraft (or many things) you pay a deposit. Likely they would have lost all or part of it.

Matt

 

[markis10]

Cost of "deferring" the A380's is minimal if anything at all

Qantas delays A380 to buy 110 A320s, while eyeing first 787 - Flights | hotels | frequent flyer | business class - Australian Business Traveller

No doubt part of the deal to buy 110 A320's was linked to being able to defer or cancel the A380s

VA is probably doing worse than QF considering their size/assets

Not sure why your linking to a 2011 article talking about the A320 order, that order is now subject to deferrals in addition to more deferrals on the A380. Airbus won't appreciate double dipping.

 

[Must...Fly!]

Not sure why your linking to a 2011 article talking about the A320 order, that order is now subject to deferrals in addition to more deferrals on the A380. Airbus won't appreciate double dipping.

I doubt they'd care much, I'm sure there are a few A320 customers who would delight at getting aircraft earlier than scheduled.

 

[markis10]

I doubt they'd care much, I'm sure there are a few A320 customers who would delight at getting aircraft earlier than scheduled.

Probably not, although they won't appreciate the A380 slots being opened up again. I expect a few other large a320 orders will suffer the same fate.

 

[moa999]

Why do you say QF would be in a better position if it had 777s over A380s. 777s over the 747 for sure, but the current A380s are a perfect plane for long routes into slot constricted airports where there is only a small window of available flight times thanks to curfews. QF has no trouble filling them and I believe when full the operating cost per pax is below the 777

 

[civinod]

Why do you say QF would be in a better position if it had 777s over A380s. 777s over the 747 for sure, but the current A380s are a perfect plane for long routes into slot constricted airports where there is only a small window of available flight times thanks to curfews. QF has no trouble filling them and I believe when full the operating cost per pax is below the 777

I am coming from the argument that QF seems to be having trouble filling them.

And then on the other routes that they are no longer flying (FRA) as an example. SIA flies this route with 777 product. It is a much more flexible vehicle.

I really believe that this plane if it was in the fleet would have made an enormous difference to QF.

If the A380 is that great why are they cancelling orders?? Great plane if you can fill it every day. That I think is the problem.

 

[JohnK]

No doubt part of the deal to buy 110 A320's was linked to being able to defer or cancel the A380s

Or the failed Asian strategy?

 

[BAM1748]

Why do you say QF would be in a better position if it had 777s over A380s. 777s over the 747 for sure, but the current A380s are a perfect plane for long routes into slot constricted airports where there is only a small window of available flight times thanks to curfews. QF has no trouble filling them and I believe when full the operating cost per pax is below the 777

They should have gone for some replacement 747s and hedge their bets with 777s. The 380 has more limitations than its Boeing equivalent the 'intercontinental'.

Matt

 

[moa999]

They are deferring two (that had already been deferred previously) because it probably saves $600m that QF doesn't have at the moment.
I suspect also that there are no additional routes that they need the A380 for at present, but this does not mean that a 777 would be better on the routes the A380 currently serves

 

[BAM1748]

They are deferring two (that had already been deferred previously) because it probably saves $600m that QF doesn't have at the moment.
I suspect also that there are no additional routes that they need the A380 for at present, but this does not mean that a 777 would be better on the routes the A380 currently serves

No, but a 777 could be switched to be used on routes the 380 cannot serve.