Airlines

Qantas group is in negotiations with Boeing to delay delivery of Boeing 787s on order.

Low-cost carrier Jetstar is to be the first airline in the group to receive 787s with the first due in May 2010.

But Qantas CEO, Alan Joyce, says the group has instigated negotiations with Boeing in an effort to delay first deliveries.

"We don't feel next year is the right time," Joyce told ATI's sister publication Airline Business on the sidelines of the IATA annual general meeting in Kuala Lumpur.

Qantas group has 65 787s on firm order with 30 earmarked for Jetstar.

Joyce says of all the airlines in the group Jetstar has been the mostly adversely affected by the swine flu outbreak.

"It has had a severe impact on Jetstar's services to Japan" and led the low-cost carrier to slash 30% of its capacity to Japan, he says.

Qantas' outbound international passenger traffic has also been adversely affected, he says.

Australians are delaying trips overseas because schools in Australia have imposed home quarantine for kids coming back, he adds.

Despite the downturn leading Qantas to push for delays in 787s, Joyce says there are early signs of recovery in the global aviation industry.

Qantas in recent weeks has seen an increase in its cargo traffic out of China, says Joyce.

"It's a good sign," he says, referring to the fact international cargo traffic is usually the first indicator of a global economic recovery.