Qantas Facing First Loss Since 1995 While Canceling Boeing Dreamliner Orders

By Author: Freya Corinne
Total Articles: 4
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Qantas for the very first time since privatization in the year 1995 have posted their first yearly loss as well as has also cancelled the orders for 35 Boeing jets because of a high in the costs of the fuels along with having a bitter battle with the unions being proved costly for the Australian airline.
Qantas made an announcement on the Thursday of the last week with a net loss of around 244 million Australian dollars which sum up to 161.3million pounds for the year to the 30th of the month of June, reversing the profit of the last year 250 million dollars.
The record of the prices of the oil saw the fuel bill of the Qantas had gone up by 17.6 per cent to the amount of 4.3 billion Australian dollars, while a bitter battle with unions over the wages and also the conditions that saw the chief executive Alan Joyce grounding the entire fleet for almost 48 hours costing Qantas the amount of 194 million dollars, this is what they have to say.
To cut the costs, Qantas has cancelled their orders for 35 Boeing 787 Dream liners, a more fuel-efficient jet, in a move that will be saving the company an amount of ...
... 8.5 billion Australian dollars in the capital expenditure commitments.
Nevertheless, the deliveries of 15 Boeing 787-8s to the low-cost arm with the name of Jetstar will be continuing as per the planning, the company had to say that with the first aircraft to arrive in the second half of the present year that is 2012.
Alan Joyce, the Chief executive made a revelation in the last week that he had not taken his bonus or an increase in the pay for this year because Qantas had "been through a very exceptional period in its history over the past 12 months.
He had to say that clearly they are confronting very difficult as well as the uncertain conditions of trading in Britain, Europe as well as the United States of America. The prices of the fuels are also quite uncertain. Apply with short term loan lenders @ http://www.shorttermloanlenders.co.uk/ Get cash now.
Joyce had to add that the strength of the Australian dollar and also the volatile global conditions meant that the company will not be offering profit guidance.
The company has not been able paid a dividend since the year 2009.
The shares of Qantas also went up by as 6.8 per cent to 1.25 in Australian dollar at the time of afternoon trade, as the investors had welcomed the decision of the company in order to cancel the order of the Boeing.