Page 50 - AA 2018_11
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QANTAS A380 AT 10



        thrust limitations meant for flights   the 777, it would have saved more           compete with major rivals such as
        to Los Angeles from Sydney the   than A$1 billion in fuel in 10 years.   ‘Placing the   Singapore Airlines in offering the
        aircraft would be able to carry only 80   However, buying the 777 would have       latest in air travel. Ultimately ordering
        passengers, making the service utterly   resulted in delaying the acquisition of   A380 on most   20, it was scheduled to take delivery
        unviable.                      A380 and 787 aircraft.                              of three by the end of 2008, another
          Rolls was accused of negligence and   As the A380 engine issues were   of the rest of   eight by the end of 2009 and all 20
        breach of contract and Qantas said   resolved and time passed there was            by the end of 2013. While it was the
        in its statement of claim the engine   another backstory to this revolutionary   its network   first to sign up for the aircraft, it was
        maker had continued to modify the   new jet. Despite the long delays in            actually the third to take delivery, after
        Trent 900 engine but left 23 engines   its production, Airbus had always   was simply   Singapore Airlines and Emirates.
        on its big jets dangerously unmodified.   sold the aircraft as a solution to         At the time of the initial delivery,
        That legal action was finally settled   mounting congestion at the world’s   not viable.’  Dixon said Qantas was in talks with
        in June 2011. Joyce said the terms of   major hubs. Carrying more passengers       Airbus to firm up orders for further
        the agreement were confidential, but   in fewer planes would relieve the           A380s. “We can see real reasons for
        the settlement’s profit and loss impact   situation, it argued, and airlines       us to take more A380s to allow for
        would amount to a $95 million boost   would queue up to buy it. Initially,         some growth and to replace some
        to the airline’s bottom line.  they did. But as the years went by                  aircraft. That’s our belief in how
          Some industry insiders also blamed   it became obvious airlines had an           good this aircraft is. We said at the
        Qantas’s heavy investment in the   opposite view. They wanted smaller,             time that in addition to giving us the
        A380 for some of the airline’s financial   twin-engine long-haul jets such as the   opportunity to reinvent our product,
        problems at the time. The carrier’s   787 Dreamliner and 777, the Airbus           this revolutionary new aircraft offered
        financial health was ailing and the hit   A330 and A350. Qantas soon reached       capacity and operating savings, as well
        from the A380 incident didn’t help. By   the same conclusion. The A380 was         as environmental improvements.”
        the 2013/14 financial year Joyce was   certainly a flagship aircraft loved by        With Dixon gone and Joyce in
        reporting a record loss of $2.84 billion,   its customers but it was expensive to   charge, by 2016 this had changed.
        blaming weak demand in Australia,   buy and operate and couldn’t match             In August that year, speaking at a
        subdued consumer and business   the economics of the new breed of                  CAPA Australia Pacific Summit, Joyce
        confidence and higher fuel prices. But   twin-aisles.                              declared the airline had no plans to
        observers suggested fleeting decisions   Qantas had been the first airline         buy any more A380s, including the
        had also had an impact. Qantas had   to sign a contract with Airbus for            eight superjumbos still listed on the
        ordered the A380, eschewing the   the A380, even though at the time                order books at Airbus.  Qantas was
        Boeing 777-300ER which became   it remained a paper aircraft. Back                 “continually pushing those aircraft
        the successful mainstay of many   then, in 2000, it saw it as being                (deliveries) out, so our intention is
        of its competitors’ fleets. It was   the cornerstone of its fleet renewal     A380s are a  common sight at   that we’re not taking those aircraft…
        estimated that if Qantas had bought   program and crucial to its ability to   Sydney Airport. seth jaworski  We have 12 aircraft and the 12 aircraft













































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