Qantas has just announced the cancellation or deferral of orders for 12 narrow-body aircraft in response to “slower overall growth rates in the domestic market”.
A previous target of 8% domestic capacity growth for 2011/12 has been revised downards to 5.5%, resulting in total savings of $700m in reduced capital expenditure and planned leased aircraft commitments over the 2010-2012 financial years.
CEO Alan Joyce said the moves would “help maximise the Qantas Group’s competitive position in the domestic market.
“With Qantas continuing to lead the premium market and Jetstar offering consistently low fares in the leisure market, we are well-placed to retain our profit-maximising 65 per cent domestic market share,” Joyce said.
The overall group now expects to take delivery of 34 aircraft in 2011/12 – compared to 43 previously planned deliveries, with the 12 cancellations or deferrals including three aircraft in the second half of 2010/11.
More details in today’s Travel Daily.