Qantas posts record loss, cancels 787-9 order

Qantas has posted its first loss since the company was privatised in 1995 – US$256 million.

This news was followed by reports that Qantas would be cancelling its 35 strong 787-9 order.

This really surprised me – after all the compensation Qantas has been asking Boeing for delays, they go and cancel the majority of the 787 order! It’s not even as if they can’t afford the aircraft, last year they reported a $250 million profit – so the net profit for the past two years is around $0 (still a lot better than a lot of airlines that have posted a net loss for the past two years).

What also surprises me is Qantas is citing strong competition from Asian and Middle Eastern competitors for losses in Qantas international’s network, surely the 787-9 would replace the old and less efficient 767s and A330s that would make Qantas International more profitable? How do they expect to compete globally if they stick with ‘same old, same old’ philosophy of fleet renewal?

http://www.bbc.co.uk/news/business-19352412