Qantas to buy another five Boeings

March 31, 2004 Qantas yesterday announced plans to buy another five
Boeing 737-800s for its domestic fleet, as part of the airline's
program to simplify its fleet and phase out old aircraft.

The news also countered concerns Qantas would gradually scale down its
main-line operations following the May launch of its low-cost
offshoot, Jetstar.

On top of the five 737-800s ordered by Qantas last November, the new
order will take the airline's fleet of the aircraft to 33 by late
2005.

The 737 order was of little surprise to analysts, given the aircraft
were already factored into Qantas's three-year $6.7 million capital
expenditure and fleet upgrade program.

But the most eagerly awaited news, according to Ian Myles of Macquarie
Equities, is whether Qantas will expand its fleet of 30 long-range
747-400s, as the airline looks to expand international operations.

Following yesterday's joint annual board meeting of Qantas and its 18
per cent shareholder British Airways, the airline declined to comment
on whether it had discussed any plans to set up or buy into a low-cost
airline based in Singapore.

Given both airlines have jointly assessed the feasibility of setting
up operations in India, Malaysia and Singapore in the past, one
industry insider said: "If there's one guy who knows how to lose money
in Asia it's Rod Eddington [the BA chief executive]."

Mr Eddington previously headed Cathay Pacific and the now defunct
Ansett, which opened up Asian routes just before it collapsed.

As for reports Qantas was pushing to hire more foreign flight
attendants to lower its wage and allowance bill, the airline's head of
corporate communications Michael Sharp said: "We're continually
assessing options but I can assure you that no decision has been made
at all."

Already threatened with widespread strike action if it attempts to
break the cap of 370 overseas-based flight attendants, Qantas could
even face industrial action at Heathrow, where the International
Transport Workers' Federation could support Australian flight
attendants.

The head of the Flight Attendants Association's international
division, Michael Mijatov, said the union "would do everything in its
power" to stop Qantas substituting more overseas crew for its 4000
international flight attendants. ####



http://www.smh.com.au/articles/2004/...544487000.html
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