Qantas adjusts capacity, capex amid slowing local conditions
Qantas announced (15-Jun-2011) an adjustment in planned domestic capacity growth and a corresponding reduction in capital expenditure for the next two years. Made in response to "slower overall growth rates in the domestic market", the Qantas Group (including Jetstar) is now targetting 5.5% domestic capacity growth for 2011/12 compared with the 8% previously planned. [more]
Capital investment will be reduced significantly, as follows:
- Reduction in capital expenditure for the second half of 2010/11 of AUD100 million;
- Reduction in capital expenditure for 2011/12 of AUD300 million;
- Reduction in planned leased aircraft commitments for 2011/121 of AUD300 million.
The group now expects to take delivery of 34 aircraft in 2011/12 compared with 43 previously planned deliveries. Orders for 12 narrowbody aircraft will be cancelled or deferred, including three aircraft in the second half of 2010/11. CEO Alan Joyce said the fleet renewal strategy "will support growth and improve product for both airlines" and maximise the group’s competitive position in the domestic market.