Qantas can cope with Dreamliner delays

Qantas Airways said it had put in place
contingencies to alleviate possible capacity constraints caused by the
further delay of the B787 Dreamliner.
The Chief Executive Officer of Qantas Airways, Mr Geoff Dixon, said today
Qantas was not surprised by the further delay announced by Boeing.

“We are, however, very disappointed that Boeing has again delayed the
delivery schedule.

“That said, we did anticipate a further delay and have been working on
contingencies for some time.”

Mr Dixon said Qantas had already secured a leasing agreement, subject to
Board approval, for up to six A330 aircraft which would go into the Jetstar
International operations.

“These aircraft are the same as currently used by Jetstar for its long haul
flying and will provide adequate growth for Jetstar until the arrival of
the Dreamliner.”

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Mr Dixon said the Qantas Group now expected to receive its first B787-8 15
months after its original delivery date.

“The B787-9 aircraft, which has also been ordered by the Qantas Group, will
also be delayed by between 15 and 23 months.

“We are currently in discussions to lease further aircraft to ensure
sufficient capacity for the needs of all our airlines in the coming years.”

Mr Dixon said under its purchase agreement with Boeing, Qantas was entitled
to substantial liquidated damages.

“These funds will be used initially to offset the cost of lease
agreements,” he said.
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