Qantas says A320neo to open new routes
Qantas Airways says the latest version of Airbus's narrowbody workhorse will open up new routes and expand the airline's international network.
As part of the airline's ambitions in Asia, Qantas has ordered 110 Airbus A320 narrowbody aircraft, as well as an unspecified number of purchase rights beyond that.
The orders included 78 A320neos, or new engine option, aircraft which manufacturer Airbus launched in December last year.
Advertisement: Story continues below
The A320neo provided an eight per cent improvement in costs over the existing A320 flying in the skies today, according to Airbus.
The A320neo would begin to arrive in 2015, Airbus said recently.
Qantas has earmarked 99 A320s for the Jetstar's operations in Australia, New Zealand, Singapore, Vietnam and the recently announced joint-venture in Japan.
Some 11 aircraft were for Qantas's proposed new premium airline to be based in a yet-to-be-confirmed Asian hub city, with Singapore or Kuala Lumpur the leading candidates.
Jetstar would be able to use the A320neo to fly to Bali from Sydney and Melbourne, giving the low-cost carrier the opportunity to increase frequencies into such leisure destinations.
And within Asia, the A320neo's extended range allowed the airline group to fly from Singapore to Shanghai or Beijing, which would allow Qantas to have a bigger presence in the growing Chinese market.
Jetstar chief executive Bruce Buchanan said the new premium airline would offer Qantas passengers more one-stop flights from Australia to Asia.
"This option will really throw up a competitive proposition for the corporate customers," Mr Buchanan said told reporters in Sydney on Wednesday.
Qantas chief executive Alan Joyce said the proposed new ventures were a sensible and measured approach towards growth in Asia markets.
Asked if the recent global economic jitters would prompt him to reconsider the timing of the new Asian businesses, Mr Joyce said the airline had always been very cautious about managing risk.
"I don't think there is enough signs for us today to say that the market has actually gone into a recession or decline," Mr Joyce said.
Airbus chief operating officer customers John Leahy said growth in the aviation industry was "flattening out" at the moment.
"The recovery after the last recession overshot," Mr Leahy said.
"We see it pretty flat end 2011, maybe beginning of 2012, but no double dip recession."
Meanwhile, Qantas said it would add extra flights to Dallas/Fort Worth.
Dallas/Fort Worth in North Texas is the biggest hub city of Qantas's oneworld alliance partner American Airlines.
The two airlines recently received approval from Australia's competition regulator to partner up on trans-Pacific flights
