Reply To: Qantas A380’s grounded

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I suppose look at the options:

1. Qantas get RR & Airbus to replace the engine and repair the airframe and fully covered by insurance and the ability to claim back from RR. Cost extimated of $100M to $150M and repair time another 9 months.

2. QF order (or given preferential pricing) on a new A380, be at the back end of the queue to have another one delivered (to their specifications) and may take until end of 2012 or early 2013 before it can be delivered.

3. QF wet (or dry) lease an A380 – well, let’s be honest, doubt that’s going to happen from any other airline, unless one goes into receivership and QF can take over the lease. Low probability overall.

Addendum: They also have the civil action of damages to the QF brand by having their A380’s all grounded (so pax leakage to other airlines, as well as less pax able to be carried on QF 744’s v A380’s) – so loss of revenue.

I’d think that option 1 + Addendum is the best option overall, when looking at cost (nil out of pocket, plus damages claim if it proceeds – but more likely RR/Airbus will pay an agreed out of court settlement), and time (late 2011 or early 2012 versus 2012/13).

Will be following this one closely.

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