Qantas orders six more Boeing 787 Dreamliner aircraft as jumbo jets bow out

Qantas is looking to build up its supply of 787-9 jets, which are more fuel efficient and have lower maintenance costs. (Reuters)
Updated 02 May 2018

Qantas orders six more Boeing 787 Dreamliner aircraft as jumbo jets bow out

SYDNEY: Australian national carrier Qantas on Wednesday ordered six Dreamliner planes from aviation giant Boeing to replace the last of its aging jumbo jets, which have been a staple of the firm’s fleet since 1971.
The deal, worth $1.7 billion at list prices, comes as Qantas looks to build up its supply of 787-9 jets, which are more fuel efficient and have lower maintenance costs.
To date it has taken delivery of four and a further four are due to arrive by the end of 2018. The latest batch are due by the end of 2020.
“This really is the end of one era and the start of another,” said chief executive Alan Joyce.
“The jumbo has been the backbone of Qantas International for more than 40 years and we’ve flown almost every type that Boeing built.
“It’s fitting that its retirement is going to coincide with our centenary in 2020.”
He added that the “better economics and a longer range” have allowed Qantas to open up new routes like Perth to London.
“With a larger fleet of Dreamliners, we’ll be looking at destinations in the Americas, Asia, South Africa and Europe,” he added.
The announcement was made as Qantas revealed in a trading update it was on track to post a record full-year underlying profit before tax of A$1.55 billion to A$1.60 billion.
The result, slated to be officially released in August, comes on the back of an aggressive efficiency drive that has included hefty redundancies and a shift away from loss-making routes, despite rising fuel costs.
“We’re seeing solid results from each of our business units, which is a reflection of broadly positive trading conditions and the work we’ve done to strengthen the group,” said Joyce.


Saudi Arabia starts selling triple-tranche dollar bonds

Updated 21 January 2020

Saudi Arabia starts selling triple-tranche dollar bonds

  • The kingdom is offering initial price guidance of around 110 basis points (bps) over US Treasuries for the seven-year paper

DUBAI: The government of Saudi Arabia started marketing on Tuesday US dollar denominated bonds split into tranches of seven, 12 and 35 years, a document showed.

The kingdom is offering initial price guidance of around 110 basis points (bps) over US Treasuries for the seven-year paper, 135 bps over the benchmark for the 12-year tranche, and 180 bps over for the 35-year.

Citigroup, Morgan Stanley and Standard Chartered are joint global coordinators and lead managers, and BNP Paribas, HSBC, JPMorgan and NCB Capital have been hired as passive lead managers.