Posted on 12/07/2005 9:23:38 AM PST by lowbuck
BOEING and Airbus executives have been left waiting on a knife-edge after the Qantas board decided last night to withhold any announcement about its plans to buy up to 100 new aircraft in a multi-billion dollar fleet upgrade.
An all-day meeting of the 12 directors, billed as one of the most significant in the airline's 85-year history, ended with both companies advised not to expect a decision before today.
The board also deferred making a separate announcement about proceeding with plans to create the world's first global low-cost carrier, Jetstar International.
The fleet decision has involved a head-to-head bidding war between Boeing and Airbus with both carriers making last-minute revisions to their offers.
Boeing wants Qantas to buy its ultra-long-range 777-200LR instead of the Airbus A340-500, both regarded as hub-busting planes capable of flying from Sydney to Europe and Melbourne to United States-based airports in a single jump.
But, it is understood yesterday's Qantas board debate centred on choosing between the fuel efficient Airbus A350 and Boeing's 787 Dreamliner as a replacement for the carrier's ageing Boeing 767s and Airbus A330s.
Qantas officials have said that Jetstar International will be equipped with either A350s or 787 Dreamliners.
A veiled clue that the Dreamliner might have edged the A350 from the bidding for the initial order of about 40 aircraft was given by Qantas chief executive Geoff Dixon in a weekend interview.
He noted that Qantas hoped to launch Jetstar International by December 2006 or early 2007, about the time the Dreamliner is due to begin commercial operations with a range of world airlines.
The A350 is still unproved and will not be available until 2010.
But was told last night that Airbus had offered Qantas a "generous" incentive to accept an alternative standby aircraft until the new planes were available.
Boeing claims the Dreamliner will carry up to 290 passengers compared with up to 300 by the yet to launch Airbus. Both are expected to have comparable operating ranges.
The 787 also will have the highest Australian-built content of any major airliner. Many of the high-tech composite components will be produced for the US aircraft-maker by its Hawker de Havilland subsidiary, in Melbourne.
The ultra-long haul 777-200LR and A340-500 would be used on extended overseas flights.
The fleet decision is in addition to the $18 billion Qantas has already committed to other aircraft replacement, such as double-decker A380s due to come into service next year.
Meanwhile, the launch of Jetstar International will enable Qantas to begin low-cost flights to destinations within 10 hours of Australia.
Mr Dixon said at the weekend that Jetstar International could resume flights to countries such as Taiwan and South Korea, which Qantas dropped because they were not viable.
He said Jetstar International would, in its second stage, begin operations to Europe.
The initial plan, however, is to build a new market out of the low-profit holiday market to leisure destinations in Asia.
Free Brie?
Qantas plays "good airline, bad airline" with Boeing and Airbus.
Airbus probably offered them low, low lease rates on some gently used A300s that Airbus took in on trade, plus a generous supply of spare vertical stabs, to hold over JetStar until the A350s were ready.
</sarcasm>
Free replacement on the first ten that crash?
Qantas never crashed
Qantas goes with Airbust, let Australia look to EU for defense pact.
I love riding in 747's...upstairs or down.
Well, they've never been an all Airbus operation either.
Regardless of what kind of business decision they make, Australia is still our staunchest friend and ally in the region.
Not in the modern era. Only two overruns...no fatalities. But in the old days in the northern Australia, when a local was going to fly to the big city, they had a wake before he left so the potential crash victim participate.
Not that it matters in any real sense - but it is Qantas, not Quantus. Australian kids tend to get very excited about this, when they discover it's an exception to the spelling rule their teachers try to teach them.
(It was originally an acronym - Queensland and Northern Territory Aerial Services).
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