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Highlights
- Qantas is all set to close a deal to overhaul its domestic aircraft fleet.
- The Australian airline plans to pick a preferred aircraft supplier by the end of 2021.
- The deliveries are expected to start by 2023-end to replace the aging aircrafts over the coming decade.
Despite being battered by COVID-19 induced travel restrictions, Qantas Airways Ltd (ASX:QAN) is all set for a multibillion-dollar facelift. Aiming to spruce itself up for future, the airline company is about to close a deal to overhaul its domestic aircraft fleet. The Australian airline plans to include over 100 new aircrafts in its fleet by 2034 as the older Boeing 717-200s and 737-800s are set to retire.
Last week, Qantas CEO Alan Joyce confirmed at a CAPA conference in Sydney that the company was mulling to pick a preferred aircraft supplier by the end of 2021. The deal may reportedly be finalised at an estimate price of US$5 billion. Joyce expects the deliveries to start by 2023-end to replace the aging aircrafts over the coming decade.
Detailed evaluation of options
The airline would run a tender process for the purchase and the shortlisting of aircraft would be done on the basis of four criteria: safety, reliability and performance, sustainability and emissions reduction, and commercial terms. The airline is considering options from Airbus A320neo, the Airbus A220, and Boeing’s MAX.
Source: © Niserin | Megapixl.com
Image Description: Qantas plans to include over 100 new aircrafts in its fleet by 2034.
COVID-19 pushed back purchase plans
Qantas has been considering replacing its old fleet with new planes for past few years. However, theCOVID-19-induced restrictions threw a spanner in the airline’s plans and the decision was put on the backburner. Several of Qantas’ Boeing 737-800s are nearing their retirement age of 20 years. According to FlightRadar24 data, while 15 have been operating for 19 years, the other six have flown for 17.
Also, Qantas is reportedly set to convert two of its Airbus 330 planes to carry freight instead of people.
Meanwhile, the airline has reported a loss of AU$3.72 billion in the past two years. The company’s revenue was eroded by nearly AU$20 billion during the period due to challenges posed by the pandemic.
Qantas share price
Shares of Qantas have witnessed muted last 30 days, largely due to the recent identification of the Omicron variant. The stock is down over 2% in the past one year. Since the 20 March 2020 pandemic lows, Qantas shares have soared nearly 120%.
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