Selloff or Market Correction? Either Way, Here's What to Do NextSee Overvalued Stocks

Qantas launches contest to replace small jets -sources

Published 10/03/2021, 02:04 PM
Updated 10/03/2021, 03:45 PM
© Reuters. FILE PHOTO: Qantas planes are seen at Kingsford Smith International Airport, following the coronavirus outbreak, in Sydney, Australia, March 18, 2020.  REUTERS/Loren Elliott
BA
-

By Jamie Freed and Tim Hepher

SYDNEY/BOSTON (Reuters) -Qantas Airways is in talks with several planemakers over plans to renew its main narrowbody and regional airliner fleets and is expected to formalise the negotiations with a tender announcement within days, industry sources said.

The Australian carrier is studying the Airbus A220 and Brazilian Embraer's E2 to replace a regional fleet of 20 Boeing (NYSE:BA) 717s and 18 Fokker 100s, they added.

Boeing's 737 MAX 7, the smallest member of its best-selling single-aisle family, is also seen as a contender.

In the busiest part of the market, Airbus and Boeing are competing head to head as Qantas also seeks to replace Boeing 737-800s, the oldest of which are nearly 20 years old.

The combined moves could lead to staggered purchases of as many as 100 jets including options, the sources said.

In Boston, where airline executives were gathering for an industry meeting, Qantas Chief Executive Alan Joyce declined to comment ahead of a virtual news briefing scheduled for Monday. Planemakers Airbus, Boeing and Embraer also declined to comment.

Talks over the influential airline's business have been under way for months, but Qantas is expected to set out its requirements publicly within days as it and other airlines eye potential bargains for jets in the wake of the COVID-19 crisis.

"We've said for some time that the renewal of our domestic narrowbody fleet is on our agenda," a Qantas spokesperson said.

"It's a long-term proposition and when we have any material updates to provide, we will.”

Qantas had initially planned to place an order in 2020 https://www.reuters.com/article/qantas-fleet-orders-idUSL3N20G2W6 but that was delayed by the pandemic. Chief Financial Officer Vanessa Hudson (NYSE:HUD) said in February a tender would be launched this year.

Qantas budget arm Jetstar has 109 A320neo family planes on order https://www.reuters.com/article/us-france-airshow-qantas-idUSKCN1TK06Q, but the start of deliveries has been postponed until at least July 2022 due to the impact of the pandemic.

In a separate contest dubbed 'Project Sunrise,' Qantas selected Airbus over Boeing for jets capable of staging the world's longest commercial flights from Sydney to London, but the plans were delayed by the pandemic.

Joyce said in August that order for A350-family jets would not be revisited until international borders reopened.

© Reuters. FILE PHOTO: Qantas planes are seen at Kingsford Smith International Airport, following the coronavirus outbreak, in Sydney, Australia, March 18, 2020.  REUTERS/Loren Elliott

Australia said on Friday it would begin a staged opening of international borders https://www.reuters.com/world/asia-pacific/australia-ease-international-travel-curbs-sources-2021-10-01 next month but only vaccinated citizens and permanent residents would be included and they would be required to quarantine at home for seven days on arrival.

The country has not set a date for opening borders to foreigners.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.