Qantas Scraps Orders for Boeing 787 Planes

26 06 2009

qantasQantas Airways of Australia said Friday that it would scrap or defer orders for 30 of Boeing’s new 787 Dreamliner aircraft, dealing a heavy blow to the American manufacturer and highlighting the intense pressure for cost savings at airlines around the world as the industry struggles to adjust to a sharp drop in passengers and freight.

Qantas, still the largest customer of the long-range, wide-body Dreamliner aircraft that is considered the key to Boeing’s future, is canceling orders for 15 of the 787s, in a move that it said would save the airline $3 billion. It is delaying delivery of 15 others by four years.

Alan Joyce, chief executive of the airline, said in a statement that Qantas’ decision was not linked to news Tuesday that the Boeing 787’s first flight had been delayed to allow further minor modifications to be made to what has been touted as the world’s most sophisticated plane.

Those problems were the latest in a series of delays in the Dreamliner project and ignited concerns about the possible effect on initial delivery schedules. The first delivery, to All Nippon Airways, was scheduled for the first quarter of 2010.

Qantas said it would retain orders for 50 of the new aircraft, including 15 for its low-cost subsidiary, Jetstar. A spokesman for Qantas, Simon Rushton, declined to comment on whether the airline would pay a penalty for the cancellation.

Analysts said the Australian flag carrier’s cancellation was one of the most significant such announcements to date, even in an industry that has already undergone major cost cuts and shake-ups.

“For Qantas to pull or defer deliveries is a major, major step,” said Derek Sadubin, an analyst at the Center for Asia Pacific Aviation, a consulting company in Sydney.

The Qantas decision takes the number of cancellations for the 787 from airlines around the world so far this year to 73, or about 8 percent of total orders for the aircraft, Mr. Sadubin said, adding that more cancellations — of aircraft of all types and makes — are probable.

Mr. Joyce, said, “Qantas announced its original B787 order in December 2005, and the operating environment for the world’s airlines has clearly changed dramatically since then.”

The global economic turmoil has taken a heavy toll on passenger and cargo traffic, with the latest figures from the International Air Transport Association showing passenger numbers in May were 9.3 percent below numbers from a year earlier, and freight demand was down 17.4 percent.

Falling volumes, combined with soaring oil prices last year, forced airlines around the world to reduce staff and flights, park planes and shelve investment plans, including aircraft orders.

Like many of its rivals, Qantas expects sharply reduced profits this year. In April, it announced it would shed 1,750 jobs, in addition to 1,500 job cuts announced last year, and warned it was exploring ways to reduce the number of aircraft it was to receive from Boeing.

“Qantas, like most airlines around the world, is clearly in survival mode,” Mr. Sadubin said.

“We are working Qantas to make changes appropriate to the current climate,” Jim Proulx, a Boeing spokesman in Seattle, told Bloomberg News.





Teens smuggle weapons on flight

13 03 2009

TWO boys have smuggled a stolen arsenal of handguns, knives and 3000 rounds of ammunition through two West Australian airports in one of the state’s most serious breaches of airline security.

The boys, aged 11 and 14, packed the weapons in their checked-in luggage on a Qantas flight from Karratha to Perth on Monday night.

On arrival in Perth, they retrieved the baggage and checked in for a 10.55pm Jetstar flight to Cairns, where they were arrested after landing at 4.10am on Tuesday.

Qantas has admitted that “explosive trace detection” X-ray machines failed to pick up the ammunition.

The 14-year-old, who allegedly stole the weapons and ammunition from a shop in Karratha, has been charged and will face the Weipa Children’s Court on Tuesday.

Federal police were tipped off about the theft by Karratha officers. They intercepted the boys and their luggage at Cairns airport where they were waiting to board a flight to Weipa.

Their baggage also contained a Ruger revolver, a .22-calibre pistol, 14 knives and other weapons.

The West Australian Police Minister, Rob Johnson, said: “If that is substantiated, I would certainly have some discussions with the minister and those people with responsibility for security at our airports.”

A Qantas spokesman told The West Australian it was aware of the incident but there was “absolutely no flight security threat”.

Because one of the boys was aged under 13, Qantas and Jetstar staff chaperoned the boys throughout their journey.





Air Tahiti Nui cancels Sydney for 6 months

7 01 2009

Air Tahiti Nui will cancel Papeete – Sydney nonstop service from 28MAR09 till 23OCT09. It will offer service via Auckland through codeshare partner QANTAS.





Air New Zealand suspends Hamilton Tasman route in 09

8 10 2008

In the Northern Summer season of 2009, Air New Zealand is suspending service on the Hamilton – Gold Coast and Hamilton – Sydney route. The Northern Summer schedule spans from 29MAR09 to 24OCT09.





Qantas grounds six planes after service ‘issues’

13 08 2008

In a statement released tonight, the airline said it would remove the six B737-400s from service while it cross-checked maintenance records relating to work carried out at one of its Australian facilities.

Qantas has been in the spotlight recently over a spate of incidents, most notably an explosion which tore through part of the fuselage of a Boeing 747-400 en route from London to Melbourne.

Last week, a Qantas jet was grounded because of noise from an air-conditioning fault which was found on a plane that was returned from routine maintenance in Malaysia two months ago with 95 defects.

This revelation seriously dents Qantas’ image of a near perfect airline with hardly any incidents.





Pacific Blue announces new route

4 08 2008

Virgin Blue has announced that it will commence flights between Melbourne and Auckland in September.

To promote the new route, the airline are offering one-way flights from $199 per person, when the service commences on September 22, 2008.

Virgin Blue Chief Executive Brett Godfrey says the move reflected the success of the Pacific Blue move. “We have been considering this route for some time, as we’re always interested in markets that are under-served,” he said.

“It makes sense to us and we’re confident air travellers will feel the same way.” Melbourne Airport CEO Chris Woodruff said the announcement would provide a boost for Victoria.