Qantas deal on hold

Published 9:00 pm Tuesday, December 6, 2005

Qantas officials have delayed a decision on a proposed 100-jet purchase after last-minute bid changes from Boeing and Airbus, The Australian reports. http://www.theaustralian.news.com.au/common/story_page/0,5744,17495048%255E23349,00.html

Key Quote: “Late revisions by manufacturers Boeing and Airbus reportedly left the board unable to sign off on a deal yesterday, and an announcement was believed to be imminent.”

The Herald Sun of Melbourne reports that — according to unnamed insiders — the hangup is the decision between Boeing 787s and Airbus A350s. http://www.heraldsun.news.com.au/common/story_page/0,5478,17495746%255E664,00.html

Key Quote: “A veiled clue that the Dreamliner might have edged the A350 from the bidding for the initial order of about 40 aircraft was given by Qantas chief executive Geoff Dixon in a weekend interview. He noted that Qantas hoped to launch Jetstar International by December 2006 or early 2007, about the time the Dreamliner is due to begin commercial operations with a range of world airlines. The A350 … will not be available until 2010. But (somebody … presumably the newspaper) was told last night that Airbus had offered Qantas a ‘generous’ incentive to accept an alternative standby aircraft until the new planes were available.”