Qantas to reduce cash reserves or take out loans to pay for aircraft orders

Qantas CEO, Alan Joyce stated it will be forced to reduce cash reserves or take out loans to pay for AUD7.1 billion in aircraft orders and renewals for the next three years, if profitability does not improve (The Australian, 10-Sep-09). Mr Joyce stated the carrier will need to generate cashflow of AUD5.5 billion for the aircraft, borrow up to 85% of aircraft value or draw on its AUD3.6 billion cash balance. The carrier has AUD19 billion in aircraft orders over the next ten years.