Qantas is deferring its 13th and 14th Airbus A380 deliveries by three to four years from early 2013 to the 2016-2017 financial year as a key measuring in slashing its capital expenditure this financial year by a further $400 million.
This is in additional to $500 million in capex reductions announced in February.
Qantas says a further six A380s, taking its fleet of the giant Airbuses to 20, will be delivered from 2018-2019.
The statement filed with the ASX this morning before the market opened says that between now and 2013-2014 Qantas will achieve international services benefits of between $280-365 million from ‘improved fleet economics, deepening international alliances, withdrawing from loss-making routes and modernising operational practices’.
This is the core of the statement:
A second statement on increased domestic capacity was light on details, which are promised for release in coming weeks, and in the middle of this month Qantas will also announce its decisions as to where job losses will fall in terms of reducing its maintenance activities in Australia, having already foreshadowed that it doen’t need all of its current facilities at Melbourne’s main airport, Avalon Airport and Brisbane Airport.
This is the core of the domestic capacity statement:
For some analysts, the issue will not so much be assessing the Qantas statements, but relating them to initiatives that its growing foreign competitors, and Virgin Australia, can be expected to take in the same periods.