Qantas orders over 50 Airbus aircraft as domestic and short-haul fleet renewal takes-off
Domestically, Qantas will start the renewal of its narrow body jets as part of ‘Project Winton’ with firm orders for 20 Airbus A321XLRs and 20 A220-300s as its Boeing 737s and 717s are gradually retired.
According to the carrier, the first of these aircraft will start to arrive in late calendar 2023, with the order including purchase right options for another 94 aircraft for delivery through to at least 2034.
Internationally, 12 Airbus A350-1000s will be ordered to operate non-stop ‘Project Sunrise’ flights from Australia to other cities including New York and London, which are set for take-off from 2025 from Sydney.
Joyce said all of these next generation aircraft – through their lower emissions, longer range, less noise and better economics – will improve how people travel around Australia and overseas.
He said customers can expect more direct routes and therefore less total travel time, alongside higher levels of cabin comfort. And, particularly on domestic and regional routes, they can expect more choice of flights at different times of day due to different size aircraft for peak and off-peak times.
“New types of aircraft make new things possible,” Joyce said. “That’s what makes today’s announcement so significant for the national carrier and for a country like Australia where air travel is crucial.
“Throughout our history, the aircraft we’ve flown have defined the era we’re in. The 707 introduced the jet age, the 747 democratised travel and the A380 brought a completely new level of comfort.
“The A350 and Project Sunrise will make any city just one flight away from Australia. It’s the last frontier and the final fix for the tyranny of distance.
“As you’d expect, the cabin is being specially designed for maximum comfort in all classes for long-haul flying.
“The A320s and A220s will become the backbone of our domestic fleet for the next 20 years, helping to keep this country moving. Their range and economics will make new direct routes possible, including serving regional cities better.
“These newer aircraft and engines will reduce emissions by at least 15 per cent if running on fossil fuels, and significantly better when run on Sustainable Aviation Fuel. This order brings us closer to our commitment to reach net zero emissions by 2050. Project Sunrise will be carbon neutral from day one.
“We have come through the other side of the pandemic a structurally different company. Our domestic market share is higher and the demand for direct international flights is even stronger than it was before COVID. The business case for Project Sunrise has an internal rate of return in the mid-teens.
“The Board’s decision to approve what is the largest aircraft order in Australian aviation is a clear vote of confidence in the future of the Qantas Group. Our strategy for these aircraft will see us generate significant benefits for those who make it possible – our people, our customers and our shareholders.
“The phasing of this order means it can be funded within our debt range and through earnings, while still leaving room for shareholder returns in line with our financial framework,” Joyce said.
Qantas also has an additional 94 purchase right options spread across A320 and A220 families and the latest order combines with the existing order of 109 A320s (plus purchase rights) for Jetstar into a single Qantas Group narrow body order of 299 aircraft (half of which are firm orders and half are purchase right options), with the flexibility to draw down on that order by choosing any variant from the A320 and A220 families.