Qantas cancels, defers orders for 787 Dreamliner

Photo / AP

Qantas Airways has cancelled orders for 15 Boeing 787 Dreamliners and delayed the deliver of a further 15 aircraft due to tough market conditions.

But the national carrier says it remains committed to the new the carbon fibre jetliner.

Qantas said it had reached a mutual agreement with Boeing to defer the delivery of 15 Boeing 787-8 aircraft by four years and cancel orders for 15 Boeing 787-9s scheduled for delivery in 2014/2015.

Air NZ has ordered eight 787 aircraft, and was one of the first airlines in the world to choose the plane for its longhaul routes.

It is paying Boeing $1.68 billion for the planes, but the production delays last year prompted it to start compensation negotiations.

The aircraft has a range of up to 16,300km and therefore the capability to fly direct to South Africa, India, South America, Asia and deep into China and North America.

The Dreamliner also uses about 20 per cent less fuel than comparable aircraft and is a big part of the airline's drive to cut running costs.

Qantas chief executive Alan Joyce said the changes to the group's B787 orders were appropriate in the current climate.

Joyce said discussions with Boeing, which commenced some months ago, had not been influenced by the announcement this week of a design issue and further delay to the aircraft's first flight.

The cancellation of 15 B787-9s would reduce the group's aircraft capital expenditure A$3.73 ($4.69) billion based on current list prices, Joyce said.

Joyce said Qantas announced its original B787 order in 2005 and the operating environment for the world's airlines has clearly changed dramatically since then.

"Delaying delivery, and reducing overall B787 capacity, is prudent, while still enabling Qantas and Jetstar to take advantage of growth opportunities and market demands, both domestically and internationally," he said.

Joyce said Qantas remained committed to the aircraft as the right choice for Jetstar's international expansion, Qantas' growth and as a replacement for Qantas' B767-300 fleet.

- AAP