Qantas buys 12 Bombardier Q400's

QANTAS is turning up the heat on Virgin Blue’s regional strategy with a $400 million order for another 12 Bombardier Q400 turboprop aircraft capable of competing against the smaller airline’s new Embraer jets.

The flying kangaroo also signalled its intention to protect its regional franchise by taking options and purchase rights on another 24 Q400s.

The new 72-seat planes are in addition to seven Q400s already delivered and two more about to join the group.

Qantas chief executive officer Geoff Dixon said the order was a clear indication of the Qantas Group’s commitment to regional air services.

“These aircraft will be used to increase capacity and service frequency on key regional routes, as well as pursue new growth opportunities,” Mr Dixon said.

The airline will take delivery of the new aircraft between July and June 2010, and it estimates that annual growth at QantasLink over that period will be about 19 per cent.

The new aircraft will also allow QantasLink to retire its older 36-seat Dash 8-100 series aircraft by early 2010.

The more modern 36-seat Dash 8-200s will remain in the fleet to service markets such as Lord Howe Island, which require that size of plane.

Qantas executive general manager regional airlines Narendra Kumar said the new aircraft would help the regional offshoot meet its growth requirements and aimed to build on the success of its existing 72-seaters.

“As you know, having seven or nine aircraft is not optimal and we want to build on that,” he said.

“This will give us increased efficiencies and our flights, especially at the sector length that we operate on, lend themselves quite well to the turboprop aircraft.”

Mr Narendra said the Q400 purchase continued a strategy that had seen QantasLink grow from 36-seat to 50-seat and then 72-seat aircraft.

However, he emphasised that the bigger planes would not mean a cut in frequencies.

“We want to maintain a high frequency schedule but also … we are growing the capacity in line with market requirements and our expectations for future growth as well,” he said.

Qantas also says the addition of the newer, bigger capacity planes will make QantasLink more environmentally friendly.

The airline argues that the turboprops are more fuel efficient and quieter than their small jet competitors.

However, Virgin believes consumers will still prefer its comfortable E-jets.

“We are looking forward to launching our first commercial E-jet flight tomorrow and are confident that travellers will enjoy our sleek jet aircraft alternative to the turboprop option currently on offer in a number of destinations,” spokeswoman Amanda Bolger said.

“We believe the E-jet is the ideal aircraft for Australia and some key regional and high frequency routes.”

Virgin Blue also yesterday launched a revamped website to make it easier to book flights and find information.

Source:The Australian