4-May-2012 8:55 AM

Qantas Group to further reduce capital expenditure in 2012/2013

Qantas Group announced (04-May-2012) it will further reduce capital expenditure in 2012/2013 by AUD400 million (USD413 million) in addition to the AUD500 million (USD516 million) reduction announced in Feb-2012. The airline's capital expenditure in the period will now be a total of AUD1.9 billion (USD1.96 billion) while it will be the same amount or less in 2013/2014. The reduction will be achieved through changes to the Qantas Group's fleet plan, including deferring the delivery of two A380 aircraft from early 2013 to 2016/2017. The Group's remaining six A380s will be delivered in 2018 and 2019. The Group expects to realise benefits of AUD280 million (USD289 million) to AUD365 million (USD377 million) across the 2012 to 2014 financial years from "improving fleet economics, deepening alliances, withdrawing from loss-making routes and modernising operational practices". [more - original PR - Qantas Group] [more - original PR - Qantas Group Investor Presentation]