Qantas has cancelled a firm order for 35 Boeing 787-9 Dreamliners after announcing a full year net loss of A$244 million ($254.80 million).
Fifty 787-9 options and purchase rights will be retained and brought forward by almost two years, available for delivery from 2016.
There is no change in allocation - Deliveries of 15 787-8s to Jetstar will continue as planned, with the first aircraft to arrive in the second half of 2013. This will enable the transfer of Airbus A330 aircraft from Jetstar to Qantas Domestic, and the eventual retirement of Qantas’ Boeing 767 fleet.
The restructure means a two-year delay in the Group’s first 787-9 delivery and will result in a reduction in capital expenditure commitments that would equal US$8.5 billion at list prices, although the actual prices will have been considerably lower.
Qantas Group CEO Alan Joyce said the changes were consistent with the goals of the Group’s broader strategy. “Qantas continues to practice disciplined capital management and, in the context of returning Qantas International to profit, this is a prudent decision,” Joyce said. “The B787 is an excellent aircraft and remains an important part of our future. However, circumstances have changed significantly since our order several years ago. It is vital that we allocate capital carefully across all parts of the Group."
Total cash inflow from the restructuring will be $433 million, with $355 million coming in the 2012/13 financial year