Qantas Airways Limited
(ASX:QAN) says the arrival of the first batch of new Boeing 787 Dreamliners for its budget offshoot Jetstar will help narrow the gap in costs with Virgin Australia Holdings Limited
(ASX:VAH).
But despite the reduction in fuel and maintenance costs offered by the new aircraft, Qantas will not decide whether to commit to buying up to 50 of the Dreamliners for at least another two years, according to media reports.
The airline has purchase rights and options for the 787 aircraft from 2016 but Qantas boss Alan Joyce says he won’t make a decision on whether to buy them until after the company's international operations reach their target of breaking even by the end of this financial year.
Mr Joyce made clear the airline wanted to maintain flexibility in buying new aircraft because of volatile conditions.
Qantas generated a net profit of $6 million in fiscal 2013.
