Spending cuts delay plane deliveries at Qantas

2012-05-06

Qantas has suspended purchase of A380n aircraft due to rising costs and a fall in passenger demand.

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Australian airline executives have revealed they will delay the delivery of two A380 planes by almost four years and will also run a new round of spending cuts.

Qantas has been streamlining its operations in a catch-up move after demand on international routes dropped substantially.

Qantas announced cuts of AUD$500 million in February and has committed to a further reduction in its capital expenditure by a further AUD$400 million.

Profits from the Australian airline fell 83% in the the six months to December.

Qantas has 65% share of the Australian market.

source: Airlines Industry News.Net