Qantas-Boeing deal may extend routes
A report by Scott Rochfort in the Sydney Morning Herald and The Age says that Qantas has flagged the possibility of establishing long-haul operations through its two Asian budget franchises — Singapore’s Jetstar Asia and Vietnam’s Pacific Airlines — to complement the already aggressive international expansion of Jetstar.
The carrier’s ambitious plans were further illustrated at the weekend, when Qantas became the largest airline customer for the Boeing 787 Dreamliner, with on the eve of Boeing’s first showing of a fully assembled 787 at its factory near Seattle, at a ceremony to be held this morning Australian time, Qantas lifting its order from 45 to 65 jets.
It also hinted that most of the planes could end up in the Jetstar fleet with Qantas CEO Geoff Dixon saying the aircraft’s fuel efficiency would allow Qantas and Jetstar to “expand more rapidly, particularly in the Asia-Pacific, the world’s fastest growing aviation region”.
The first 15 787-800s Qantas will receive from mid-2008 will go into the Jetstar fleet, but it is yet to decide where it will deploy the longer-range 787-900s that it will take delivery of from 2010.
Qantas also called on Boeing to expedite development of the jet’s stretched version, the 787-10.
Asked where Jetstar could expand its services, Mr Dixon said: “There’s a chance of Jetstar going anywhere. You have a carrier that has absolutely established itself well in its costs base and the way it operates.”
He also rejected speculation that Qantas could eventually lease planes from Jetstar to cut costs and side-step labour deals with higher paid Qantas crews.
Qantas CFO Peter Gregg, who joined Mr Dixon at the press conference, said Jetstar Asia and Pacific Airlines could possibly take on the Airbus A330-200s in Jetstar’s fleet that the 787 will replace.
“The options for us to put wide-bodies into those vehicles are growing by the day,” Mr Gregg said.
Such a move could be seen as an attempt to ward off the threat posed by low-cost Asian airlines — such as Malaysia’s AirAsia — looking to launch long-haul services into Australia.
Qantas bought a 30% stake in Pacific Airlines from the Vietnam Government two months ago.
Qantas’s gamble on the 787 and Airbus A380 super-jumbo — of which it is the second largest buyer — appears to have paid off and despite the wrappers not coming off the 787 until this morning near Seattle, Boeing has already sold more than 660 of the jets, making it the most successful launch of a new commercial airliner in history. Airlines now wanting one of the fuel-efficient jets will have to wait until 2013.
“One of the great advantages and one of the positions that Qantas has established for itself is this order we have for the 787,” Mr Dixon said.
“You really can’t get into this game at the moment.”
Mr Gregg and Mr Dixon also signalled that Qantas’s recent aircraft buying binge could continue, with the airline now looking to replace its ageing fleet of 747-400 jumbo jets and even look at a short-haul jet that could be used for its entire Qantas and Jetstar fleet.
Report by The Mole
John Alwyn-Jones
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