Qantas has opted to buy 12 787-10s and -9s and 12 more A350s to replace its A330 and A380 aircraft.
The multi-billion dollar order is split between 12 Airbus A350s and 12 Boeing 787s arriving from FY27 into the next decade. The Group has also negotiated additional purchase right options, split evenly between both manufacturers, to give flexibility for future growth and ultimately replace its 10 A380s with A350s from around FY32 onwards.
The average age of Qantas’ A330 fleet will be 21 years at the time the replacement program starts in FY27, which is in line with the Group’s typical replacement profile. Aircraft scheduled to leave the Qantas fleet towards the end of the replacement program will undergo a cabin refurbishment from FY25, including next-generation seats in the Economy cabin.
Qantas has named its international fleet renewal ‘Project Fysh’ in honour of Sir Hudson Fysh who co-founded the airline and was Managing Director when it commenced international flying in 1935.
Qantas Group CEO Alan Joyce said: “This is another multi-billion dollar investment in the national carrier and it’s great news for our customers and our people.
“It’s in addition to the 149 firm aircraft we still have on order to continue renewing the domestic fleet for Qantas and Jetstar, and for the non-stop Project Sunrise flights to London and New York.
“Both the 787 and A350 and the GE and Rolls Royce engines fitted to them, are thoroughly proven and extremely capable.
“These are generational decisions for this company. The aircraft will arrive over a decade or more and they’ll be part of the fleet for 20 years. They’ll unlock new routes and better travel experiences for customers, and new jobs and promotions for our people,” added Mr Joyce.
CEO designate Vanessa Hudson said: “We effectively started these negotiations off the back of the narrowbody and Sunrise campaigns, and that momentum helped deliver pricing and delivery slots that makes this an excellent opportunity for the Group.
“Our ability to afford these aircraft comes from years of restructuring and strengthening our balance sheet, and our confidence about the future. Our entire fleet plan has a lot of flexibility built into it so we can slow down deliveries or, within reason, bring them forward depending on the broader market.
“The phasing of these orders mean they can be funded within our debt range and through earnings, on top of continuing shareholder returns in line with our financial framework.
“This deal gives the Qantas Group access to sustainable aviation fuel supplies out of the United States, making us one of the first airlines in the world to have a pathway to achieving our 2030 SAF targets,” added Ms Hudson.
ABOUT THE ORDER
- Firm order for four Boeing 787-9 and eight 787-10 aircraft, with deliveries starting in FY27.
- Firm order for 12 Airbus A350-1000s, with deliveries starting in FY28.
- Purchase right options split between Airbus and Boeing to complete A330 and A380 fleet replacement and provide for growth.
- Both orders include significant flexibility to adjust the timing of deliveries.