SINGAPORE (Reuters) – Australia’s Qantas Airways Ltd said on Wednesday it would order 10 Airbus SE A321XLR jets and convert another 26 from a prior order to the new long-range model.
That will take its total A320neo family order to 109 planes, from 99 previously.
The A321XLR jets, to be delivered from mid-2024, have a 4,700 nautical mile range that will allow Qantas or its low-cost arm Jetstar to perform longer-range flights in narrow body jets.
“It can fly routes like Cairns-Tokyo or Melbourne-Singapore, which existing narrow-bodies can’t, and that changes the economics of lots of potential routes into Asia to make them not just physically possible but financially attractive,” Qantas Chief Executive Alan Joyce said in a statement.
Jetstar operates an A320 narrow body fleet, but Qantas uses the rival Boeing 737. Joyce said the A321XLR had plenty of potential uses across both airlines and it would decide closer to the date on where they would be deployed and if they would be used for growth or to replace older jets.
Jetstar is due to receive 18 A321LR jets from 2020 to 2022 and plans to deploy them on domestic and international routes.
The additional 10 jets are valued at more than $1 billion at Airbus list prices, although airlines typically receive substantial discounts.
Qantas said it retained flexibility around the timing and structure of the deliveries depending on market conditions.
“All fleet decisions we make are ultimately guided by our financial framework, which balances our capital expenditure and need to invest for the future with our debt levels and ongoing returns to shareholders,” Joyce said.
Qantas is expected to decide next year on a replacement for its 75 737 jets, which comprise the backbone of its domestic fleet, Joyce said in February.
Contenders include the A320neo family, the 737 MAX and Boeing’s proposed new mid-sized airplane.
(Reporting by Jamie Freed; Editing by Himani Sarkar)
WASHINGTON (Reuters) – American Airlines Group Inc and Qantas Airways Ltd have been given the U.S. government’s tentative approval to operate a joint venture after a prior effort was rejected in 2016.
The U.S. Department of Transportation on Monday issued an order tentatively approving the joint business agreement and tentatively granting antitrust immunity to the airlines covering international service. An application for a joint venture covering the United States, Australia and New Zealand was rejected by former President Barack Obama’s administration.
The deal would allow the airlines to coordinate their planning, pricing, sales and frequent flyer programs, with new options and customer service improvements. The airlines planned up to three new routes within the first two years and increased capacity on existing routes, the department said.
American Airlines said a final decision is expected in the coming weeks.
“The joint business will also create additional jobs at our respective companies and in the industries we serve,” said American Chairman and Chief Executive Officer Doug Parker.
The department will require the airlines perform a self-assessment of the joint venture’s impact on competition seven years after it takes effect and report their findings to the government, which could subsequently take action.
Regulators in Australia and New Zealand approved the first application for the joint venture before it was initially rejected by the U.S. Transportation Department.
American and Qantas in February 2018 made a second attempt to gain U.S. regulatory permission under President Donald Trump’s administration for a venture that would let them coordinate prices and schedules. They threatened to cancel services if it was rejected and argued it could “unlock” up to $310 million annually in consumer benefits.
The revised application made significant changes, including removing a provision that would have barred either carrier from code-sharing with other carriers. Code-sharing is an arrangement between airlines in which two or more carriers publish and advertise a single flight under their own flight number.
The airlines argued in their 2018 application that the venture would lead to a reduction in fares and higher capacity as a “more viable third competitor” and require other carriers to respond with improvements in quality, schedules and prices.
Qantas said last year the joint venture would allow the two airlines to “significantly improve service” and “stimulate demand.” The airlines said the agreement could generate up to 180,000 new trips between the United States and Australia and New Zealand annually.
U.S. regulators in 2001 approved similar joint venture agreements for United and Air New Zealand Ltd and in 2011 for Delta Air Lines Inc and Virgin Australia.
(Reporting by David Shepardson; Editing by Dan Grebler and Grant McCool)
An American Airlines Boeing 737-800 airplane takes off at Simon Bolivar International Airport in Caracas, Venezuela January 25, 2019. REUTERS/Andres Martinez Casares
Airline could place an order for A350 or 777X by year end
21-hour flight would be the world’s longest
Qantas plans economy class section, including stretching zone (Adds details on aircraft configuration)
SEOUL, June 3 (Reuters) – Qantas Airways Ltd has asked Airbus SE and Boeing Co to present their “best and final offer” for planes capable of flying 21-hours non-stop from Sydney to London by August, the airline’s chief executive said on Monday.
“Hopefully by the end of the year … we will come to a conclusion one way or another,” Qantas CEO Alan Joyce told reporters on the sidelines of an airline industry conference in Seoul. “If the business case works we will put in an order.”
Qantas is aiming for the planes to be delivered from late 2022, with the first Sydney-London flights likely in 2023, he said. The route would be the world’s longest commercial flight and Qantas is examining A350 and 777X models.
The airline is in talks with pilots about changing a labour contract to increase productivity to help support the business case for an order, Joyce said.
Qantas plans to have four service classes on the airplane, including first, business, premium economy and economy, with a zone for economy and premium economy-class passengers to stretch and hydrate, he said.
Singapore Airlines Ltd has only business class and premium economy on the world’s current longest route, from Singapore to New York.
Joyce said Qantas’ success in selling around 90% of economy-class seats on its Perth-London flights showed there was demand for economy class on the even longer Sydney-London route.
“There still will be a large economy,” he said.
Qantas also planned other routes with the new jets such as Melbourne-London, Sydney-New York and possibly flights from the east coast of Australia to other cities in Europe, the U.S. east coast and Brazil, he said.
(Reporting by Jamie Freed; Editing by Stephen Coates)
HONG KONG/SINGAPORE (Reuters) – Hong Kong flagship carrier Cathay Pacific Airways Ltd said on Tuesday it is in “active discussions” about an acquisition involving budget airline Hong Kong Express Airways Ltd, although an agreement has yet to be reached.
Such
a deal would give Cathay exposure to the growing budget-travel market
at a time when a lack of slots at Hong Kong International Airport has
constrained its ability to follow peers like Singapore Airlines Ltd and
Qantas Airways Ltd and set up its own budget brand.
The
Hong Kong carrier has instead shifted some destinations from its main
brand to its regional carrier, Cathay Dragon, as part of a
transformation plan designed to cut costs and increase revenue. It has
ordered 32 Airbus SE A321neos for Cathay Dragon.
Cathay
said it had decided to go public about the discussions in response to
media reports suggesting it may be in talks to acquire shares in Hong
Kong Express Airways Ltd and full-service sister carrier Hong Kong
Airlines Ltd from cash-strapped Chinese conglomerate HNA Group Co Ltd.
It
did not detail the potential value of the transaction, nor the size of
the stake it would hold. It said it would issue an additional statement
when appropriate.
An analyst last year estimated to Reuters that HK Express could be worth about $300 million.
HNA and HK Express did not immediately respond to a request for comment.
A
person with knowledge of the matter said the companies appeared close
to reaching an agreement and noted Cathay’s parent Swire Pacific Ltd had
historically taken majority stakes when making investments.
Cathay is not interested in Hong Kong Airlines because it has both similar routes and full-service positioning, the person said.
A
second person with knowledge of the matter said Cathay had signed an
exclusivity period for discussion but other parties remained interested
in HK Express if a deal could not be reached.
Both sources spoke on the condition of anonymity as discussions are confidential.
ANTITRUST
Given Cathay’s dominance of Hong Kong’s aviation market, a deal could attract scrutiny from the competition regulator.
Some
analysts have also expressed doubts about the likely benefits of any
deal. Daiwa analyst Kelvin Lau said he did not see much value from the
acquisition as the two airlines flew similar routes, but also because
Cathay would need to undertake significant reform to add a budget wing.
Jefferies analyst Andrew Lee however said in a note to clients it would be “positive for Cathay Pacific” as it would give the airline greater access to a different passenger segment in the low-cost market.
FLYING HIGH
News
of Cathay’s interest in HK Express comes just weeks after Hong Kong’s
flagship carrier projected its annual profit at more than double analyst
estimates, sending its shares surging nearly 9 percent.
Shares
of Cathay have risen more than 19 percent so far this year, compared
with an 8 percent fall in 2018. The airline’s shares jumped more than 3
percent on Tuesday morning.
Cathay has faced repeated questions from investors over the last few years about its failure to set up a budget carrier.
Chief
Executive Rupert Hogg has said it would be difficult to do so until a
third runway was completed at Hong Kong International Airport in 2024,
opening up more slots.
“Our
home-based airport is full at the moment, or largely full, and so it’s
not a perfect place to develop a model from scratch,” he told CAPA
Centre for Aviation last May.
HK
Express operates a fleet of 25 A320 family aircraft to regional
destinations around Asia, according to plane tracking website
FlightRadar24.
Embattled
HNA Group is more than a year into the process of unwinding a $50
billion acquisition spree that at its peak netted the company stakes in
banks, fund managers, hotels, property and airlines, among other assets.
(Reporting by Donny Kwok in Hong Kong and Jamie Freed in Singapore; Additional reporting by Kane Wu in Hong Kong; Editing by Anne Marie Roantree and Stephen Coates)
PARIS (Reuters) – Imminent airline decisions on $10 billion of wide-body plane orders could influence the fate of Airbus’ (AIR.PA) A330neo even before the recently upgraded jet completes flight trials, industry sources said.
American Airlines said in January it was reviewing the Boeing 787-9 Dreamliner and shorter-range Airbus A330-900, which is in test flights before entering service this summer.
Boeing is focusing on tweaks it may be able to make to the 777-8 to meet Qantas’s requirement for an aircraft that can fly nonstop from Australia’s east coast to Europe.
Just read a great article about the Boeing 717 jet. There were only 156 Boeing 717’s built, but their operators would love to get their hands on more of them. The aircraft today is mainly being operated by Delta, Qantas, Hawaiian, and the Spanish low-cost carrier Volotea.
AirTran Airways operated more than half of the Boeing 717’s that were manufactured. They operated a fleet of 88 when it was announced that they would be acquired by Southwest Airlines in September of 2010. Southwest, eager to maintain there single aircraft type fleet of 737’s, later sold all of their inherited 717’s to Delta Air Lines.
You can read the story referenced above at the link below…
