SYDNEY, May 4: Australian carrier Qantas is delaying delivery of two new Airbus A380s to help cut capital spending, a further blow to planemaker Airbus which has already seen China pull out of orders over a European Union airline emission charge row.
Delivery of the two Airbus A380s, originally intended for early 2013, will be put back to 2016/17, with a final six A380s delivered from 2018/19, Qantas said on Friday.
Airbus earlier this year said China had blocked the purchase of 35 long-haul A330s and 10 A380 superjumbos and suspended the purchase of 10 more A330’s, as tensions over the EU’s Emission Trading Scheme (ETS) flared.
The European planemaker has seen $14 billion worth of aircraft caught up in tensions over the scheme, which has also angered countries such as India and the United States.
Rival Boeing has taken advantage of the row, pulling ahead of Airbus in deliveries in the first quarter.
A Qantas spokesman said the delay in the delivery of the A380s was unrelated to the EU emissions charges.
‘It’s purely to reduce capital expenditure. We’re obviously participating in the EU emissions trading scheme but we are already fully compliant with it, so unlike Chinese airlines and U.S. Airlines we have no intention of objecting to the EU ETS,’ he said.
Qantas has 12 Airbus A380s and 26 Boeing 747s in service and would continue to work with both planemakers to service their requirements, he added.
‘We have a good relationship with both manufacturers, we’ve got big orders with both, we have the big Airbus A320 order and we have big orders with Boeing for the 737s and the Dreamliner.’
Qantas said in February it would cut capital spending by A$500 million over two years and announced plans to cut 500 jobs after its first-half profit halved as an industrial dispute and higher fuel bills took their toll.
The additional A$400 million announced on Friday will take capital expenditure cuts to A$900 million. Capital expenditure will now total A$1.9 billion, the company said.
Qantas also said it will increase capacity on its more profitable domestic routes during 2012 and 2013.
It will add additional services during peak times on core east-coast business routes and reintroduce Boeing 747 and Airbus A330 services on the east-west route. Jetstar will increase capacity in key leisure markets.
Qantas Chief Executive Officer Alan Joyce said its goal was to retain domestic market share at around 65 percent.
Earlier this month, media reported Qantas’ heavy maintenance bases were under review and said Qantas would cut 400 jobs at its base near Melbourne airport, with 660 workers at another base also at risk.
Qantas said the consultation process had concluded and a decision will be announced by mid-May. ($1= 0.9739 Australian dollars)
(AGENCIES)
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