Australian airline Qantas today cancelled a big order for 35 Boeing 787-9 Dreamliners worth $8.5 billion at list prices.
But Boeing ultimately may make the sale if the airline’s business case improves. Qantas held onto options and purchase rights for 50 more Dreamliners in the future.
The airline, which posted its first loss in 17 years since it was privatized, said it had backed out of the order because it wants to minimize its capital expenditures while it gets its international business in order.
The airline will still be taking delivery of 15 787-8s it has on order. By cancelling the order for the larger 787-9s, Qantas will receive its $433 million deposit on those planes back from Boeing.
The airline will use the efficient 787-8s flying for its low-cost Jetstar subsidiary. Qantas will move Airbus A330s now flying for Jetstar to the parent airline for domestic flights.
Ultimately, those A330s will replace the Austrialian carrier’s fleet of Boeing 767s.