Qantas to buy Boeing jets

Associated Press

CANBERRA, Australia — Australian air carrier Qantas told Boeing Co. it wants to buy 15 new aircraft and take options on another 60 as part of domestic expansion and fleet upgrade plans.

The decision is part of a new 10-year strategic alliance with American Airlines, the world’s largest airline.

A Qantas spokesman said Monday the company had chosen Boeing over European rival Airbus Industrie.

"The company looked for many weeks, there were many factors but in the end it was a close decision in favor of Boeing," said spokesman Michael Sharp.

Qantas has placed an initial order for 15 new generation Boeing 737-800 aircraft as part of a $1.5 billion Australian ($750 million U.S.) domestic expansion announced last month.

The options on another 60 aircraft are to progressively replace its existing fleet of Boeing 737-300 and 737-400 aircraft.

Qantas chief executive Geoff Dixon said that thanks to the new alliance with American Airlines, the first of the new batch of aircraft would be in service as early as January next year.

The aircraft will come from existing orders that American Airlines had in place with Boeing.

"American Airlines will assist Qantas with technical advice, simulator training for pilots, spare parts and engines," he said.

The new aircraft will enable Qantas to meet the demand created by the collapse of Ansett Airlines in September, formerly Australia’s second largest domestic carrier until it was grounded under the weight of unsustainable debt.

The remainder of the 15 aircraft would be progressively introduced between February and July 2002.

Following the demise of Ansett, Qantas is hoping to tie up about 70 percent of the domestic market, against a smaller version of Ansett salvaged from the collapse, and Virgin Blue, a discount carrier which entered the market late last year.

Dixon said the Boeing 737-800s would form the cornerstone of the airline’s revamped domestic operations.

Details of the new alliance with American Airlines agreement would be finalized in the next few weeks.

Dixon said it would involve joint purchasing arrangements and Qantas would use American Airlines specifications as standard for the replacement of the Qantas single-aisle fleet such as Boeing 737s.

Qantas would also begin Auckland-Dallas-Auckland nonstop services when the new, long-range Boeing 747-400 is delivered in late 2002.

Copyright ©2001 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

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