Australia's flag carrier QANTAS Airways has withdrawn orders for 35 new Boeing 787 Dreamliner aircraft in a bid to cut payable responsibilities following a A$245 million ($257 million) annual loss in profits.
The troubled flying Kangaroo blamed the unfavourable development to manpower work stoppages that greatly affected operations and cost the company A$194 million, an 18 per cent uptick in its fuel bill, as well as a struggling international division which has lost some A$450 million.
Qantas Airways on Thursday announced the plane orders cancellation was in a bid to hold on to cash amounting some $US8.5 billion.
"Qantas continues to practice disciplined capital management and, in the context of returning Qantas International to profit, this is a prudent decision," Chief Executive Alan Joyce said.
Privatised nearly two decades ago, the company said the net loss for the 12 months through June 30 compares with a profit of A$250 million (US$262 million) the previous year.
"Qantas has been through an exceptional period in its history over the past 12 months," Mr Joyce said.
"Over the course of the year we made significant progress in advancing the group's strategy - building on our strong domestic business and frequent flyer program and growing Jetstar across Asia.
"Qantas' international's turnaround plan is on track and set for improvement in 2012/13."
The Qantas CEO announced possible tie-up with Dubai-based Emirates is being discussed to pare costs on European routes and win back market share.
In a separate statement, the airline company said it is dropping orders for 35 787-9 jets, but will still take delivery of 15 787-8s in the second half of 2013. It has likewise reserved options and purchase rights to 50 787-9s.
As early as June, Qantas had suggested it would report its first statutory loss since privatisation in 1995, which sent shares to an all-time historical low below $1.
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