Qantas Group lowers aircraft residual values

Qantas Group announced (17-Feb-2010) it is changing its estimated fleet residual values, based on the introduction of 'next generation' aircraft and a "reduction in secondary market demand increasing pressure on residual aircraft values". Effective 01-Jan-2010, all passenger aircraft will be depreciated to a residual value of 10% at 20 years, compared to the previous policy of 12.5% or 20% at 20 years, depending on aircraft type. In addition, depreciation costs will be approximately AUD50 million (USD44.9 million) higher in 2HFY2010/11, due to the reassessment of aircraft residual values.