Qantas may exercise 787 options

Published 9:00 pm Wednesday, March 29, 2006

Reuters is reporting http://edition.cnn.com/2006/BUSINESS/03/29/qantas.787.reut/ that the Australian carrier “is very likely” to exercise its options on 50 more 787s.

Key Quote, from CFO Peter Gregg: “‘Effectively, there are 65 orders out there in the books straight away and you get the ability to buy another 50 at the prices we have negotiated,’ Gregg said. ‘We will want those 50, I am pretty sure of that.’”

Fifty Dreamliners would carry a list price of around $7 billion (U.S.). Analysts say Boeing’s been offering discounts on 787s between 15 and 25 percent.

In addition, Gregg told Reuters that … “the airline was hoping to decide soon on ultra-long range jets. … ‘We’re also calling tenders at the moment for ultra-long range aircraft, that is an aircraft like the 777-200 long-range LR,’ he said. ‘I would hope that we would be in a position to make a decision on that in the next three to four months.’”

That jives with what Boeing has been telling me, that they were confident in eventually landing a long-range 777 order from Qantas. The Aussies had been expected to buy either -200LRs or A340-500s last winter when they placed the 787 order, but they passed, saying they weren’t yet convinced either option would allow them to profitably fly Sydney-to-London nonstop.