Qantas plans to sell 21 ageing Boeing 737-400 aircraft as the airline reduces capacity due to weaker-than-expected demand and high jet fuel prices (Sydney Morning Herald, 03-Apr-2011). The aircraft, which reportedly could be sold for AUD20 million (USD21 million) each, should give the airline a much-needed boost to its cash flow during a period of declining yields. Qantas is also selling a 20-year-old Boeing 767-300, in addition to the early retirement of two other B737-300s announced last week, which the airline has described as ideal for freighter conversion.
Qantas to sell 21 B737-400s and two B767-300s
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The nature of the South Pacific's geography makes finding the right partners for its airlines essential for their survival in international long haul markets – as most are.
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For all airlines in the region, the China market will define much of the growth over the coming decade. (This report is taken from the Jul/Aug-2016 issue of CAPA's Airline Leader)
Emirates-Qantas JV expands as partnerships become more intricate, while some airlines go it alone
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The expansion of the JV would not be possible without the increased comfort that Emirates and Qantas feel toward each other, and their ability to have intricate models for handling the increasingly complicated partnership and number of hubs involved. JVs are no longer in a binary classification of existence or absence; there is a scale from rudimentary to near-consolidation.
As JVs like Qantas-Emirates become more sophisticated, the basic JVs – or even airlines without – are dearly lacking. There has been a profusion of JVs in recent years, with more on the way, but they have tended to be confined. Partners need to be more comfortable with each other in order to add additional airlines and markets, later consolidating as they stitch together individual partnerships.