Forging on its expansion into regional Australia (possibly ticking off Rex (ASX: REX) further), national carrier Qantas (ASX: QAN) has announced a new investment into its DeHavilland Dash 8 turboprop fleet. It is part of its ongoing commitment to “keeping regional Australia connected”.
The first aircraft will join the Company’s regional brand, QantasLink, by the end of CY24. The national carrier will acquire 14 additional mid-life Dash 8-400 aircraft (Q400), with 19 smaller Q200 and Q300 turboprop aircraft to be gradually phased out of the fleet.
Q400 aircraft are more than 30% faster than the Q200 and Q300 aircraft. Plus, the younger fleet will also help improve operational reliability.
This investment will consolidate three sub-fleets into a single fleet of turboprops, providing further scale benefits and fuel efficiencies for QantasLink, including lower maintenance and operating costs. At the completion of the fleet changes, there will be no material change to QantasLink’s overall turboprop capacity.
Qantas Group CEO Vanessa Hudson said the turboprop renewal program was part of the airline’s ongoing commitment to serve regional Australia.
Hudson said, “QantasLink turboprops carry more than 3.5 million customers to more than 50 destinations around regional Australia every year, and these next-generation aircraft allow us to improve the travel experience with a faster and more comfortable experience.
“By consolidating our turboprops into a single fleet type, we’ll be able to further improve our reliability and provide a better recovery for our customers during disruptions as well as reducing complexity and cost for our operation.”
This investment comes as the Qantas Group progresses its broader jet fleet renewal program. QantasLink’s third Airbus A220 aircraft will be delivered in the coming weeks.
The net investment in the fleet will be predominantly spread across FY25 and FY26, with the majority in FY25. The investment in FY25 will be managed within existing net capex guidance of $3.7bn to $3.9bn.
While it onboards these new aircraft, the Company will work with aircraft manufacturers and other suppliers to develop electric or battery-powered aircraft of the right size and range.
QantasLink currently has 31 Q400s in its fleet, which will increase to 45 following the new investment. The 14 new Q400s will have 78 seats (four more than the existing Q400s) compared to 50 seats on the Q300s and 36 on the Q200s. The additional aircraft are, on average, more than ten years younger than the aircraft they are replacing.
Recently, Qantas purchased the remaining 49% of Byron Bay-born online travel business TripADeal, accelerating Qantas Loyalty’s exposure to the growing $13 billion online holiday packages market. The acquisition will enable the Group to combine Qantas and Jetstar’s extensive network with the ever-increasing curated tour market.
Rex and Qantas have been at odds in recent years, with Rex complaining to the Australian Competition & Consumer Commission (ACCC) about Qantas’s entry into “low passenger” routes (which the ACCC dismissed). While Rex was not too keen on the competition, Qantas has been focused on expanding its arsenal.
Alinda is a Business Reporter for The Sentiment
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