Here’s some of the reaction from Down Under:
The Courier-Mail in Brisbane http://www.thecouriermail.news.com.au/common/story_page/0,5936,17568135%255E3122,00.html reported that both Boeing and Airbus had sharpened the pencil considerably in an effort to low bid the other.
Key Quote: “The fierce battle was acknowledged by Qantas chief executive Geoff Dixon, who said the difference in prices was so slender that the board had taken more time to decide. ‘But in the end we are going for a plane that is going to introduce new technology and give us fuel efficiency in an era where we expect jet fuel prices to remain high,’ Mr Dixon said. ‘We believe our people negotiated an extremely competitive contract for us.’”
The Herald Sun in Melbourne got some of the details wrong (a 350-seat 787-9?). But it does note that by buying Boeing, Qantas helped provide work for the Boeing-de Havilland factory in the city.
Key Quote: “The winning 787 will have a fuselage and wing flaps made from space-age composites, some of which will be fabricated by Hawker de Havilland in Melbourne. The Hawker plant at Fishermans Bend, a subsidiary of Boeing, will build the 787’s wing flaps, providing on-going work for 250 Victorians. The 787 program is expected to generate about $4 billion in exports for Australia, based on projected sales to 2030.”
The Advertiser in Adelaide — which had a picture of a 787 in Jetstar’s new paint scheme — http://www.theadvertiser.news.com.au/common/story_page/0,5936,17571593%255E913,00.html looked at why Qantas didn’t buy Boeing 777s or Airbus A340s.
Key Quote: “Qantas chief executive Geoff Dixon said yesterday neither manufacturer could offer a suitably economical long-range “hub-buster” that would end the stops in Asia and Los Angeles for flights to Europe or the eastern U.S. Despite enthusiasm from some sections of Qantas, the long-range Boeing 777 or Airbus 340 would not be profitable — or quick — enough to justify having in the fleet, he said.”
I talked with some Boeing folks about this last night and this morning and can say the company is quite confident Qantas will place a 777-200LR order in the not-so-distant future. We’ll see.
But along those lines, The Age in Melbourne http://www.theage.com.au/news/business/qantas-plumps-for-boeing/2005/12/14/1134500912379.html notes that even after today’s big 787 order, Qantas still has about A$7 billion to spend, out of a fleet-renewal budget of A$20 billion.
Key Quote: “Mr Dixon said the rest of the purchase plan would be made up by either adding to the 12 giant Airbus A380s the company is committed to, or buying the new generation of 747s Boeing is developing. The new, ultra-long range 777 might be considered as well.”
And News.com.au http://finance.news.com.au/story/0,10166,17565872-31037,00.html elaborated on the why-Qantas-didn’t-buy-777s issue.
Key Quote: “‘Neither the B777 nor the A340 provide an economical solution to our desire to have some of our services overfly mid-point hubs,’ Mr Dixon said. ‘As well, our commercial people did not feel the savings in elapsed time between the non-stop and one-stop journey was great enough to appeal to a wide enough passenger base.’ However, Mr Dixon said it would continue to talk to both manufacturers about long-range aircraft options.”
One more serious point: There was a good bit of speculation that Airbus’ problems delivering the A380 on time was a big factor in souring Qantas on doing business with Toulouse. I asked Boeing 787 chief Mike Bair about that last night, and he said that the issue never came up in any of the conversations he had with Qantas executives.
Talk to us
> Give us your news tips.
> Send us a letter to the editor.
> More Herald contact information.
