Qantas faces funding crunch for fleet renewal, S&P says
After delaying spending on its fleet for too long during a turnaround program, Qantas faces a possible funding squeeze when it’s time to buy new planes, according to S&P Global Ratings. Qantas needs to increase investment in its aging fleet of 309 planes before the sum required is too large to handle, S&P said Thursday. Shareholder returns may have to be reduced to pay for fleet renewal. The average age of a Qantas plane is just shy of 10 years, older than a typical aircraft at SIA and almost double the figure at Emirates, S&P said. Qantas doesn’t plan to increase capital expenditure this year or the next, creating a “sizable funding task” from 2020 onward, S&P said in its report. But Qantas may be restricted by its own target for net debt as well as an Australian law that limits foreign ownership of the carrier’s shares. <br/>
https://portal.staralliance.com/cms/news/hot-topics/2018-02-15/oneworld/qantas-faces-funding-crunch-for-fleet-renewal-s-p-says
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Qantas faces funding crunch for fleet renewal, S&P says
After delaying spending on its fleet for too long during a turnaround program, Qantas faces a possible funding squeeze when it’s time to buy new planes, according to S&P Global Ratings. Qantas needs to increase investment in its aging fleet of 309 planes before the sum required is too large to handle, S&P said Thursday. Shareholder returns may have to be reduced to pay for fleet renewal. The average age of a Qantas plane is just shy of 10 years, older than a typical aircraft at SIA and almost double the figure at Emirates, S&P said. Qantas doesn’t plan to increase capital expenditure this year or the next, creating a “sizable funding task” from 2020 onward, S&P said in its report. But Qantas may be restricted by its own target for net debt as well as an Australian law that limits foreign ownership of the carrier’s shares. <br/>
