Boeing Secures Multi-Billion Pound Order from Qantas

Strategic Insights -

Boeing has secured a significant deal with Australian airline Qantas, which has ordered 65 of the US firm's 787 Dreamliner jets, with options for a further 50 planes. The deal, valued at up to $9 billion, is likely to propel Boeing ahead of European rival Airbus in the 2005 order numbers. The order is a major coup for Boeing, which has recorded a record year in aircraft orders.

Key Takeaways:

  • The deal involves the purchase of 45 twin-aisled 787 jets with options for a further 20, and purchase rights for an extra 50 aircraft.
  • The order is valued at up to $9 billion, making it one of the largest in recent history for Boeing.
  • Qantas chose the Dreamliner for its price, technology, fuel efficiency, and range, as well as its ability to offer a modern fleet with maximum flexibility, lower seat mile costs, and greater fuel efficiency.
  • Boeing has recorded more than $100 billion in orders this year, with Qantas' order pushing the company further ahead of Airbus in 2005 order numbers.
  • Boeing had 800 orders as of November 30, while Airbus had 494 as of October, but has since won a deal to supply 150 single-aisle aircraft to China.
  • Qantas has decided against buying either Boeing's 777 or the Airbus A340 model for certain routes, as bids from the two plane-makers were unable to meet the airline's economic requirements.

Statistics:

  • $9 billion: Valuation of the Qantas order
  • 65: Number of 787 Dreamliner jets ordered by Qantas
  • 50: Number of additional 787 jets Qantas has options for
  • 2007: Year when the Dreamliner is expected to have its first test flight
  • $100 billion: total orders recorded by Boeing this year
  • 800: Number of Boeing orders as of November 30
  • 494: Number of Airbus orders as of October
  • 150: Number of single-aisle aircraft Airbus has won a deal to supply to China
  • 20%: Ownership stake of Britain's BAE Systems in Airbus
  • 80%: Ownership stake of European Aerospace Defence & Space (EADS) in Airbus

Sources:

  • "Qantas to buy 65 aircraft for $9 billion" - The Economist [Source not available]
  • "Boeing Seals $9 Billion Deal With Qantas" - Bloomberg [Source not available]
  • "Qantas Chooses Boeing Dreamliner For Big Plane Order" - Associated Press [Source not available]