Qantas records worst loss in its history: $2.84 billion

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28 August 2014

  • Domestic and international operations to be split
  • Airbus A320: Five aircraft on order for Jetstar have been sold. Orders for 21 A320ceos have been converted to orders for the more-fuel-efficient A320neos, with delivery delayed by four years. This means that Jetstar (Qantas Group) has orders for a total of 99 A320neos;
  • Airbus A330-200: Two leased aircraft to leave the fleet when their leases expire in late 2015 (believed to be VH-EBH and VH-EBI);
  • Boeing 737-800: Two to be disposed of – one from Qantas Domestic (believed to be VH-VYI, which is already on Boeing’s website as available for lease), plus one from Qantas JetConnect;
  • Boeing 767-300ER: Fleet to be withdrawn earlier than planned – all ten remaining 767s to go by the end of 2014;
  • Boeing 787 Dreamliner: The first of 50 Boeing 787 options and purchase rights have been deferred again, from 2016 to 2017;
  • $2.6 billion non-cash writedown of the value of the Qantas International fleet;
  • $428 million in redundancy and restructuring expenses;
  • $400 million in non-cash costs related to early aircraft retirements;
  • Underlying loss before tax of $646 million, excluding the above one-off costs and writedowns;
  • 2,500 staff have been made redundant out of the 5,000 previously announced

Many aviation industry analysts, Qantas staff and independent Senator Nick Xenophon are calling for the Qantas Chairman Leigh Clifford and CEO Alan Joyce to step down:

VH-EBB Airbus A330-201 (MSN 522) of Qantas at Perth Airport – Friday 1 August 2014
VH-EBB Airbus A330-201 (MSN 522) of Qantas at Perth Airport – Friday 1 August 2014
1st visit to Perth after being returned to Qantas service from Jetstar, landing on runway 03 at 4:06 pm. Two A330s will be returned to lessors at the end of lease, in late 2015.
Photo © Matt Hannigan
VH-XZE Boeing 737-838 (MSN 39369/4421) of Qantas, named 'Pine Creek', at Perth Airport– Fri 4 April 2014. Photo © David Eyre
VH-XZE Boeing 737-838 (MSN 39369/4421) of Qantas, named ‘Pine Creek’, at Perth Airport– Fri 4 April 2014.
Taxying in on Taxiway A at 17:37, as flight QF1089 from Newman.
Photo © David Eyre
VH-OGI Boeing 767-338ER (MSN 25246/387) of Qantas, named ‘City of Port Augusta’, at Perth Airport – Fri 18 July 2014. Landing on runway 03 at 14:53 as flight QF651 from Brisbane. After spending millions of dollars on cabin upgrades for their 767s, Qantas is to retire the entire fleet in early 2015. Photo © David Eyre
VH-OGI Boeing 767-338ER (MSN 25246/387) of Qantas, named ‘City of Port Augusta’, at Perth Airport – Fri 18 July 2014.
Landing on runway 03 at 14:53 as flight QF651 from Brisbane. After spending millions of dollars on cabin upgrades for their 767s, Qantas is now to retire the entire fleet by the end of 2014.
Photo © David Eyre
Airbus A320neo of Jetstar. Artists impression copyright Airbus.
Airbus A320neo of Jetstar.
Artists impression copyright Airbus.

David Eyre

President, Aviation Association of WA Inc

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