Qantas Fleet Decision To Benefit Australia

Sydney, 14 December 2005

Qantas said today that its selection of the Boeing 787 would provide substantial economic benefits for Australia.

The Chief Executive Officer of Qantas, Mr Geoff Dixon, said the Boeing Company had already announced a significant commitment to the development of the B787 series of aircraft in Australia.

"The Qantas order will substantially increase that commitment," he said.

Mr Dixon said Qantas and Boeing had agreed to meet early in 2006 to look at further ways of enhancing Australian involvement in the B787.

"Qantas' order alone is expected to inject up to $250 million directly into the Australian economy.

"Boeing has also told us that the order could produce total flow-through economic benefits to Australia in the order of $2 billion.

"Boeing also expects other airlines to follow Qantas' lead in relation to orders for the B787. This will provide an additional contribution to Australian jobs and export dollars."

Mr Dixon said Qantas was pleased that its fleet plan decision would enable the creation of jobs and the production of important technologies to be carried out in Australia for the next decade and beyond.

"This is a great win-win for Qantas passengers - and for Australian jobs," the Hon. Andrew Peacock, AC, President of Boeing Australia, said.

"The 787 is clearly a game changer in the world airline business, and the even better news is that the 787 has the highest Australian content of any current airliner.

"One of our five Australian subsidiaries, Hawker de Havilland, is contracted to design and manufacture the 787 trailing edge control surfaces at its Melbourne plant.

"Based on total projected sales, the B787 work will provide substantial economic benefits to Australia, including projected exports of around $A4 billion through 2030," Peacock said. "When the 787 program reaches rate production by about 2013, about 250 people will work in high-skilled jobs at Fishermans Bend.

"The 787 contract is expected to proceed other high tech work, including components for the Lockheed Martin Joint Strike Fighter, currently the world's largest military program."

Issued by Qantas Corporate Communication (3371)