Dreams can come true

It is the 1980s’ best representation of a what a widebody, medium- to long-haul airliner could be. For Qantas it has given great service, first on regional international flights and mostly for the last decade or so as the backbone of its trunk route domestic flying. And with its unique seven-abreast 2+3+2 economy class seating you have to be pretty unlucky to not be allocated an aisle or window seat, so down the back it is not an unpleasant place to be.

But its time has come. With its indirect replacement in the 787 delayed by several years the 767 has had to soldier on in Qantas service much longer than planned. A recent cabin refresh with what looks to be a comfortable five-abreast business class and QStreaming iPads at every seat can’t hide the fact that the 767 is at the end of its economic life, and not in the same league in terms of cabin comfort as much younger jets such as Boeing Sky interior-fitted 737NGs and the Virgin (and to a lesser extent Qantas) A330‑200s on domestic routes today.

So the delivery of the Qantas Group’s first 787 to Jetstar is as significant for Qantas mainline as it is for Jetstar, given the 787s will replace A330- 200s which will in turn replace the last of the Qantas 767s. It is a neat double play that will leave both Qantas and Jetstar far better off in terms of product and fuel efficiency.

On the fuel efficiency side, Geoffrey Thomas’s story on the 787 delivery from p46 of this issue has a great little anecdote about the comparative fuel efficiency of the 787 and a following A330-200 operating Honolulu- Melbourne. On a like-for-like basis Jetstar Flight Operations ran comparative flightplans on the A330 and 787 which found the A330 would have burnt eight tonnes more fuel while flying slower and seating 25 fewer passengers.

On that basis it is easy to see that, especially in a Jetstar 335-seat configuration, the 787 offers a step-change improvement in operating economics. And it provides a better perspective on why the 787s were allocated to Jetstar first, rather than Qantas mainline – in the low margin world of low-cost carriers, the 787 will offer Jetstar a massive yield advantage over its competitors.

And, even in a Jetstar 335-seat layout the 787 offers a pretty good customer proposition, thanks to the 787’s big windows, big overhead bins, higher humidity, lower cabin pressure altitude and lower noise levels, plus on-demand inflight entertainment to every seat (for a small fee, of course!).

Jetstar CEO Jayne Hrdlicka describes the 787 as a “gamechanging” aircraft.

That should make even the relatively squeezy nine-abreast, 30-31in pitch economy cabin a pretty comfortable place to be for a five to nine hour medium-haul flight.

Of course, how much more comfortable a 787 cabin could be in a Qantas International long-haul configuration with lie-flat business, premium economy and (perhaps) an eight-abreast economy we’ll have to wait to see until 2016 at the earliest, assuming Qantas exercises any of its 787-9 options, and assuming any firmed-up 787 options also don’t head to Jetstar.

That’s the opportunity cost of the 787 going to Jetstar first, and not Qantas mainline. It is a pretty safe bet that Qantas has run the numbers many times over and deemed that Jetstar is the most profitable place to put the 787, especially the smaller 787-8, while the 787-9 (as Air New Zealand is showing) offers much greater promise for long-haul full-service operators.

Qantas says it still has two years before it needs to make decision on its 787 options. That will be a pretty telling decision. Firming up 787-9 options for Qantas International will be a very clear affirmation of the long-term viability of the Qantas brand on long-haul international flying.

Such a commitment would bring some much-needed sparkle to the Qantas International brand, and provide a much-welcomed confidence boost for Qantas International staff, who for so long now have heard that their part of the company is the sick child of the Qantas Group.

The flipside is that for Jetstar staff the 787 is a big affirmation of the importance of the low-cost carrier to the Qantas Group. There is a definite buzz around Jetstar with the arrival of the 787, heightened, no doubt by the 787’s many delays. But the 787 is here, now, and will soon start delivering on its many promises, offering a win-win as a customer proposition and as a profit generator.

Jetstar CEO Jayne Hrdlicka describes the 787 as a “game‑changing” aircraft. If that is the case, it would have been worth the wait.