A380 Deferral Opens Up Opportunities


  • Qantas will not take delivery of 8 unfilled orders for the Airbus A380.
  • Suitable candidates for the international fleet seem to be the Boeing 777-8 and Airbus A350-900ULR.
  • Stretches of the seem to be unfit at first sight.

Last week the CEO of Qantas (OTCPK:QUBSF) said it does not want to take delivery of any of the 8 Airbus (OTCPK:EADSF) A380s that are still on order. The Australian carrier was one of the early customers and operators of the superjumbo and had ordered a total of 20 airframes. The airline had previously deferred orders in 2012 for the sake of cash conservation and repeated the same thing in 2014. The CEO now says that 12 A380 aircraft are enough and it does not want to take delivery of the remaining 8 unfilled orders.

AeroAnalysis previously marked these airframes to be unlikely to be delivered to Qantas. These airframes are not formally canceled by Qantas, but they will be sitting in Airbus's order books without the slightest chance of ever being delivered.

In 2000, the CEO at that time, deemed the Boeing (NYSE:BA) 777 unfit for the Qantas fleet. The Boeing 777 was too big for domestic operations. The firm ordered the Airbus A330 instead. For its international network the airline at that time preferred the Boeing 747-400, its ER variant and Airbus A380.

The current CEO said the following about the decision the firm made at that time:

It is great to be able to say I wish I could get in a time machine and go back to 2000 and [change] the fleet order [made by] not the last CEO, [but] the CEO before that…

The airline is currently in talks with Boeing and Airbus to see what the jet makers have to offer on the long term and probably to have some of their wishes incorporated in upcoming aircraft. This, however, does not mean that we will be seeing the Airbus A380 leave the Qantas fleet any time soon. The A380 fleet of the carrier has an average age of

This article was written by

Dhierin Bechai profile picture
In-depth insights from an expert on the aerospace and airline industries
Dhierin is a leading contributor covering the aerospace industry on Seeking Alpha and the founder of The Aerospace Forum. With his Aerospace Engineering background he has a more indepth knowledge about aerospace products enabling him to cover a complex niche. Most of his reports will be about companies in the aerospace industry or airlines industry, comparing products and looking at market forecasts providing investors with unique and thorough insights. Dhierin has accumulated nearly 20 million views never failing to spark healthy and thoughtful discussions for investors and aerospace professionals.

His reports have been cited by CNBC, the Puget Sound Business Journal, the Wichita Business Journal and National Public Radio. His expertise is also leveraged in Luchtvaartnieuws Magazine, the biggest aviation magazine in the Benelux.

AeroAnalysis offers wide variety of services, ranging from providing data and cost models to consultancy possibilities. Check out our website for more information. Though we believe in the strong nature of our analysis, we are in no way giving buy or sell recommendations and advise everyone to do their own due diligence before making investment decisions.

Disclosure: I am/we are long BA. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Recommended For You

Comments (36)

To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.