Qantas reveals ambitious plans, orders 110 A320s
17 Aug 2011
In a dramatic move Australian carrier Qantas announced plans to slash up to 1,000 jobs and also launch an Asia-based premium carrier. In addition, Qantas also revealed plans for a joint venture with Japan Airlines (JAL) and Mitsubishi to launch a low-cost carrier. As part of the revamp, Qantas also announced it would buy between 106 and 110 Airbus 320 aircraft.
Of those, 78 orders are for the best-selling 'neo' version of the A320.
The decision is a decisive slap in the face of American manufacturer Boeing, which competes with the all-time bestseller, the 737, in the same category.
The order brings sales of the A320neo to around 1,200 and marks a gradual ascendancy of Airbus over Boeing in the medium-haul jet market.
Market observers say the Qantas order for the A320 is another setback for Boeing in its efforts to market a 737 RE or re-engined model to counter the A320neo.
"I would not like to gloat but I tend to think we have (shut Boeing out of some markets). It is not just the first mover advantage, I think we also have a better product," a confident-sounding John Leahy, Airbus sales chief, is quoted as saying by Reuters.
According to The Australian, Qantas' move "is part of wider rationalisation aimed at returning Qantas international to profit in the next three years and seeing all Qantas-branded flying operations sustainably exceeding their cost of capital."
