Qantas (ASX:QAN) leases 5 more planes to boost domestic capacity

Company News

by Michael Luu

Australia’s national flag carrier Qantas (ASX:QAN) has activated its right under a wet lease arrangement with Brisbane-based airline operator Alliance Aviation (ASX:AQZ) to summon five aeroplanes.

The move means Qantas has called up seven of its fourteen-aircraft allowance under the contract with the ASX-listed aircraft lessor.

Under the aircraft leasing deal introduced on February 4, Alliance will loan aircraft, maintenance and fight crew to operate flights under Qantas’ aviation services. Every aircraft summoned under the agreement will have an initial lease term of three years.

So far, the Flying Kangaroo has exercised its entitlement twice to access Alliance Aviation’s fleet for lease.

The initial call-up involved three short-to-medium range Embraer 190 aeroplanes. These twin-engine jets will be up in the air to deliver Qantas services from May 25. ??Alliance Aviation (ASX:AQZ) will deploy another five aircraft to serve Qantas’ passengers from June 21.

Qantas’ subsidiary Jetstar has also loaned six Airbus A320s from its Japanese counterpart to boost the total flight capacity of the group.

Qantas endeavours to lift its domestic market share from 60 to 70 per cent, targeting a 90 per cent return to pre-pandemic capacity levels. Australia’s biggest airline intends to capitalise on the increased need for leisure and business travel inside the country, as domestic COVID-related restrictions retreat.

By 2pm, Qantas (ASX:QAN) had bounced back 0.8 per cent from yesterday’s panic sell-off to $4.78, following NSW health authorities’ confirmation of zero new local transmission today.