Qantas seeks $350m for new aircraft

[Yada Yada]

Qantas seeks $350m for new aircraft
Steve Creedy, Aviation writer
March 28, 2006

QANTAS is thought to be seeking almost $350 million in loans to buy seven new aircraft to service its domestic and New Zealand routes.

The loans were being arranged by ANZ Bank, which would then syndicate them to a wider group of lenders, according to Bloomberg. Reports from Australia, Singapore and the US put the value of the loans at between $341 million and $350 million.

The loans would be used to buy five Boeing 737-800s and two Airbus A320s and would mature in nine to 12 years, the report said.

<snip>

Reports of the loans came as Qantas announced it would convert four 737-300 passenger aircraft to freighters and lease them to its freight joint venture with Australia Post, Australian Air Express.

Work on converting the aircraft using Israeli conversion kits will start next month and the aircraft will replace three ageing and less efficient Boeing 727 freighters at AeA.

The aircraft will come from the airline's New Zealand operations and will be replaced by four Qantas 737-400s.

The freighter conversion is the first such work to be done in Australia and Qantas chief executive Geoff Dixon said it would create 60 new jobs at a new operation to be established in Avalon, Victoria.

"We are pleased the work will be undertaken in Australia," he said.

Full Story...

 

[NM]

The five new 737-800s are good news, meaning expansion of QF mainline (domestic and trans-Tasman). However, two new A320's means further expansion of JQ. Lets hope this is not at the expense of QF mainline services, but is to be additional capacity or new routes.

 

[Kiwi Flyer]

The five new 737-800s are good news, meaning expansion of QF mainline (domestic and trans-Tasman). However, two new A320's means further expansion of JQ. Lets hope this is not at the expense of QF mainline services, but is to be additional capacity or new routes.

Not much expansion - take out 4 737s and replace with 5.

 

[NM]

Not much expansion - take out 4 737s and replace with 5.

That is still an increase one aircraft, and an increase of seat capacity. JetConnect will move from 737-300s in 12J/112Y to 737-400s which can provide 12J/132Y in their current convertible config. So an exchange of 4 x 737-300 for 4 x 737-400 means an increase in 80 Y seats for JetConnect.

And replacing 4 x 737-400 with 5 x 737-800 means an increase of 12J and 252Y seats for QF mainline.

 

[Kiwi Flyer]

There is a difference between extra capacity and expansion :wink:

 

[NM]

There is a difference between extra capacity and expansion :wink:

I tried to use that justification to Mrs NM when she commented on my middle aged spread. It didn't work .

 

[JohnK]

However, two new A320's means further expansion of JQ. Lets hope this is not at the expense of QF mainline services, but is to be additional capacity or new routes.

It is good to have hope. I can't see how we will avoid the inevitable!

 

[oz_mark]

Well Qantas actually went for $400 million, although they were a bot coy on what it was for. It was for general corporate purposes which may include the acquisition of aircraft!

http://www.asx.com.au/asxpdf/20060329/pdf/3w30wjtqdb3n6.pdf

 

[Yada Yada]

Well Qantas actually went for $400 million, although they were a bot coy on what it was for. It was for general corporate purposes which may include the acquisition of aircraft!

http://www.asx.com.au/asxpdf/20060329/pdf/3w30wjtqdb3n6.pdf

Probably to upgrade the chairman's lounge. :roll:

 

[NM]

Probably to upgrade the chairman's lounge. :roll:

or the chairman's bonus :twisted: .

 

[moa999]

think they are different

- one is US$400mm raised in the US
- other is A$350mm being raised via ANZ by syndicated loans which is local money

Both are pretty long-term (9-12 and 10 yrs)