Shortsighted?

Qantas cancels 35 787s

When Qantas cancelled all its outstanding 787-9s in late August it was perhaps, in a twist, similar to Boeing cancelling the Sonic Cruiser in favour of the 787.

At the time many wondered if Boeing had lost the “right stuff ” with airline executives grumbling that the decision at Boeing had been made by a “bunch of accountants out there in Seattle. ” However Sir Rod Eddington, then CEO of British Airways told the author: “The aviation lover in me wishes it were the other way around, but the airline business person in me believes it is absolutely the right call. We are entirely supportive of the Boeing decision to go for the high-efficiency option over the increase in speed. ” At Qantas the high-efficiency option right now is to cut capital expenditure and there is little doubt that the stark economic reality is that the airline’s share price and credit rating cannot support the $8. 50 billion commitment.