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Qantas Cancellation: A Boeing Victory?

Feb. 12, 2019 7:00 AM ETThe Boeing Company (BA), EADSFQUBSF, RYCEF49 Comments


  • Qantas canceled order for 8 Airbus A380s as expected.
  • No Project Sunrise order decision seems to have been made yet.
  • Airbus is deflating the Airbus A380 order book.
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Just days ago, AeroAnalysis discussed the possible implications of Emirates cancelling its most recent order for the Airbus (OTCPK:EADSF) A380 driven by disagreement between turbofan supplier Rolls Royce (OTCPK:RYCEF) and Emirates. The news came weeks after Airbus scratched an order from Hong Kong Airlines for 10 superjumbos from its order book. A cancellation would be a bad thing and would likely mean that the Airbus A380 production will come to an early end despite positivity last year when Emirates placed the followup order that would secure production for another few years. We believe that an order cancellation for the Airbus A380 would open up possibilities for the Airbus A350 and Airbus A330neo, which would most likely have unwanted consequences for the tentative agreement between Boeing (NYSE:BA) and Emirates for the Boeing 787. With the news on a possible cancellation from Emirates for the Airbus A380 still fresh, the next cancellation already lined up. In this report, we will explain why this cancellation is far less threatening than the one from Emirates that could hit Airbus but still surprising due to the timing.

Afbeeldingsresultaat voor qantas a380

Source: Australian Aviation

Qantas walks away from order

After the news broke that Emirates was considering other aircraft instead of the Airbus A380, the next blow to the Airbus A380 program was dealt by Qantas (OTCPK:QUBSF). The Australian airline confirmed that it had cancelled orders for 8 Airbus A380s. While the order book will decline, the move is not as big of a blow to Airbus as it might seem. In 2006, Qantas ordered a total of 20 Airbus A380s of which 12 were delivered to the carrier. Ten years later, in 2016, it became clear that Qantas had indefinitely deferred the delivery of the remaining 8 aircraft, which is equivalent to a cancellation without formally

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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.

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